Ranjit Talwar
This article is part of a series providing an ongoing review of changes made to Robert Karr’s 13F stock portfolio on a quarterly basis. This is based on Karr’s regulatory 13F Form filed on 8/12/2022. please visit our Tracking Robert Karr’s Joho Capital Portfolio article for an idea on his investment philosophy and our last update for fund movements in Q1 2022.
During this quarter, Karr’s 13F stock portfolio value decreased ~38% from ~$701M to ~$438M. The number of holdings decreased from 19 to 12. The top three positions represent ~77% of 13F assets: Microsoft, Alibaba Group Holdings, and Livet.
Robert Karr is one of the most successful of the “tiger cubs” (protégés of Julian Robertson and his legendary Tiger Fund). Although his primary expertise is Asian equities, ~30% of assets are typically in US listed 13F securities. The fund (1996 inception) closed out of money and became a Family Office in 2014. To learn more about Robert Karr and “tiger cubs”, see the book Julian Robertson: A Tiger in the Land of Bulls and Bears.
New Stakes:
nothing.
Stake disposals:
Dynatrace Inc. (DT): DT is a 9.30% portfolio position primarily developed in Q1 2021 at prices between ~$40 and ~$56. There was a ~50% stake increase in the next quarter at prices between ~$45 and ~$61. Last quarter saw another one-third increase in prices between ~$38.50 and ~$59.30. Deletion this quarter will be at prices between ~$30 and ~$49. The stock is currently trading at $39.15.
Alphabet Inc. (GOOG), Adobe Inc. (ADBE), Amazon.com (AMZN), Meta Platforms (META) formerly Facebook, ServiceNow (NOW), and Uber Technologies (UBER): These very small (less than ~0.75% of the portfolio each) stakes were dropped this quarter.
Stake Increases:
Autodesk Inc. (ADSK), Ecolab (ECL), and Estee Lauder (EL): These very small (less than ~1% of the portfolio each) stakes increased during the quarter.
Lowering Stakes:
Microsoft Corp (MSFT): MSFT is currently the largest position at ~35% of the portfolio. It was first bought in Q1 2019 at prices between $97 and $120 and increased by ~90% in the next quarter at prices between $119 and $138. Q4 2021 saw ~14% sales at prices between ~$282 and ~$343. The stock is currently trading at ~$258. There was a ~4% trimming this quarter.
Alibaba Group ADR (BABA): BABA is Karr’s second largest position at ~21% of the portfolio. It established in Q2 2015 at prices between $79.50 and $94 and nearly doubled the following quarter to prices between $57 and $84. Q1 2016 saw another ~50% increase in prices between $60.50 and $81.50. Since then, there have been only minor adjustments. Q1 2021 saw ~25% sales at prices between ~$223 and ~$271. There was a two-thirds increase in stake in Q3 2021 at prices between ~$140 and ~$222. This quarter saw a ~20% reduction in prices between ~$81 and ~$120. The stock is currently trading at $90.60.
Livet Corp (LTHM): LTHM is a ~20% portfolio stake established in Q3 2019 at prices between $5.50 and $7.75 and increased by ~60% next quarter at prices between $6.45 and $8.95. There were ~40% sales in Q2 2020 at prices between $4.60 and $8.75. Q4 2020 saw a two-thirds increase in prices between ~$9 and ~$19. The stock is currently trading at $33.22. There was ~8% trimming this quarter.
Note: Livet is a spinoff from FMC Corporation (FMC) which started trading in October 2018 at ~$16.25 per share.
Euronet Worldwide (EEFT): EEFT is a large (top five) 12.75% portfolio stake purchased in Q3 2020 at prices between ~$87 and ~$106. There was a ~60% increase in stake in Q4 2020 at prices between ~$88 and ~$145. That was followed by a ~45% increase in Q4 2021 to prices between ~$101 and ~$135. The stock is currently trading near the low end of their purchase prices at ~$88. The last two quarters have seen a ~18% reduction.
Note: Euronet Worldwide had a previous roundtrip in the portfolio. A small 0.93% of the portfolio position was purchased in Q1 2020 at prices between $69 and $167. It was dumped in the next quarter at prices between $73 and $121.
Global Payments (GPN): GPN is now a ~6% of the portfolio stake. It was first bought in Q2 2019 at prices between $136 and $163 and increased ~200% in the next quarter at prices between $154 and $175. The stake was sold in H1 2020 at prices between $116 and $209. It has been rebuilt over the five quarters to Q3 2021 at prices between ~$156 and ~$216. There was a two-thirds reduction this quarter to prices between ~$107 and ~$145. The stock is currently trading at ~$130. They realized the losses.
Procter & Gamble (PG): A minuscule 0.76% of the portfolio’s position in PG was reduced during the quarter.
Keep it Constant:
Amphenol Corp (APH), Constellation Brands (STZ), and Simon Property Group (SPG): These very small stakes (less than ~1% of the portfolio each) have held steady this quarter.
The spreadsheet below highlights changes in Karr’s 13F stock holdings in Q2 2022:
Robert Karr – Joho Capital 2022 Report Q/Q Comparison 13F (John Vincent (author))
Source: John Vincent. Data compiled from Joho Capital’s 13F filing for Q1 2022 and Q2 2022.