Brave Warrior Advisors, the firm led by Glenn Greenberg (Trades, Portfolio), disclosed in a regulatory 13F filing that its top trades during the first quarter included boosts to its holdings of Elevance Health Inc. (ELV, Financial) and F&G Annuities & Life Inc. (FG, Financial). The firm also reduced its positions in HCA Healthcare Inc. (HCA, Financial), Fidelity National Financial Inc. (FNF, Financial) and Lithia Motors Inc. (LAD, Financial).
Prior to founding Brave Warrior Advisors, Greenberg co-founded Chieftain Capital Management with John Shapiro in 1984. Chieftain split into two entities in 2010, in which Greenberg renamed the original firm Brave Warrior Advisors.
The New York-based firm invests using a defense against ignorance approach, managing a concentrated portfolio of stocks that have little competition and high returns on invested capital.
As of March, the firm’s $3.23 billion 13F equity portfolio contains 28 stocks, with three new positions and a quarterly turnover ratio of 4%. The top three sectors in terms of weight are financial services, consumer cyclical and health care, which represent 59.89%, 18.07% and 15.77% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Elevance Health
Brave Warrior purchased 212,353 shares of Elevance Health (ELV, Financial), boosting the position by 24.34% and its equity portfolio by 3.02%.
Shares of Elevance Health averaged $475.89 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.90 as of Wednesday.
The Indianapolis-based health insurance company has a GF Score of 90 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 8 out of 10, a momentum rank of 5 out of 10 and a rank of 6 out of 10 for GF Value and financial strength.
Elevance Health’s positive investing signs include a 4.5-star business predictability rank and a three-year revenue growth rate that is near a 10-year high and outperforms more than 66% of global competitors.
Other gurus with holdings in Elevance Health include Baillie Gifford (Trades, Portfolio), the Vanguard Health Care Fund (Trades, Portfolio) and Andreas Halvorsen (Trades, Portfolio)’s Viking Global Investors LP.
F&G Annuities & Life
The firm added 801,818 shares of F&G Annuities & Life (FG, Financial), expanding the position by 13.29% and its equity portfolio by 0.45%. Shares of F&G Annuities & Life averaged $20.03 during the first quarter.
The Des Moines, Iowa-based company provides insurance solutions serving retail annuity and life clients. Although the company’s financial strength and profitability rank just 3 out of 10, F&G Annuities & Life does not have enough data for GuruFocus to compute ranks for growth, GF Value and momentum. Thus, the company’s GF Score of 19 out of 100 may give an incomplete picture of its potential.
HCA Healthcare
The firm sold 376,362 shares of HCA Healthcare (HCA, Financial), slicing 90.69% of the position and 2.85% of its equity portfolio.
Shares averaged $254.01 during the first quarter; the stock is fairly valued based on its price-to-GF Value ratio of 1.05 as of Wednesday.
The Nashville-based acute care hospital operator has a GF Score of 90 out of 100 based on a rank of 10 out of 10 for profitability and growth, a momentum rank of 9 out of 10, a financial strength rank of 4 out of 10 and a GF Value rank of 3 out of 10.
HCA Healthcare's high profitability rank is driven by several positive investing signs, which include a five-star business predictability rank and an operating margin that has increased by approximately 2.4% per year on average over the past five years and outperforms more than 83% of global competitors.
Fidelity National Financial
Brave Warrior sold 139,086 shares of Fidelity National Financial (FNF, Financial), trimming 1.51% of the holding and 0.16% of its equity portfolio.
Shares of Fidelity National Financial averaged $39.35 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.89 as of Wednesday.
The Jacksonville, Florida-based company provides title insurance, escrow and other title-related services. The company has a GF Score of 85 out of 100 based on a rank of 7 out of 10 for momentum and profitability, a growth rank of 8 out of 10, a GF Value rank of 6 out of 10 and a financial strength rank of 5 out of 10.
Fidelity National Financial’s high growth rank is driven by three-year revenue and earnings growth rates that outperform more than 60% of global competitors.
Lithia Motors
The firm sold 14,639 shares of Lithia Motors (LAD, Financial), trimming 1.35% of the position and 0.09% of its equity portfolio. Shares averaged $243.20 during the first quarter.
GuruFocus listed the Medford, Oregon-based used vehicle company a possible value trap based on its low price-to-GF Value ratio of 0.60 as of Wednesday and modest financial strength rank of 5 out of 10.
The company’s warning signs include a low Piotroski F-score of 2 out of 9 and a debt-to-Ebitda ratio that is above 4 and underperforming more than 71% of global competitors.
Despite the company having modest financial strength, Lithia Motors' high GF Score of 94 out of 100 is driven by a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a GF Value rank of 8 out of 10 and a momentum rank of 7 out of 10.
