Ranjit Talwar/iStock by Getty Images
This article is part of a series that provides an ongoing review of changes made to Robert Karr’s 13F stock portfolio on a quarterly basis. This is based on regulatory Form 13F filed by Karr on 5/16/2022. Please visit our Tracking Joho Capital Portfolio by Robert Karr article for an idea on his investment philosophy and our last update for fund moves in Q4 2021.
This quarter, Karr’s 13F stock portfolio value dropped ~ 3% from ~ $ 723M to ~ $ 701M. The number of holdings decreased from 20 to 19. The top three positions represent ~ 59% of 13F’s 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 the Family Office in 2014. To learn more about Robert Karr and “tiger cubs”, check out Julian Robertson’s book: A Tiger in the Land of Bulls and Bears.
New Stakes:
nothing.
Stake disposals:
Fidelity National Information Services (FIS): The tiny 0.08% of the portfolio stake in FIS established last quarter was discarded this quarter.
Stake Increases:
Alibaba Group ADR (BABA): BABA is Karr’s second largest position at ~ 16% of the portfolio. It was founded in Q2 2015 at prices between $ 79.50 and $ 94 and nearly doubled in the following quarter at 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 stake increase in Q3 2021 at prices between ~ $ 140 and ~ $ 222. The stock is currently trading at $ 93.41. The last two quarters have also seen a minor increase.
Dynatrace, Inc. (DT): DT has a 9.30% portfolio position that was primarily developed in Q1 2021 at prices between ~ $ 40 and ~ $ 56. There was a ~ 50% stake increase next quarter in prices between ~ $ 45 and ~ $ 61. This quarter saw another third increase in prices between ~ $ 38.50 and ~ $ 59.30. The stock is currently trading at $ 38.19.
Alphabet Inc. (GOOG), Autodesk, Inc. (ADSK), Estee Lauder (EL), and Simon Property Group (SPG): This very small (less than ~ 0.50% of portfolio each) stake increased in the quarter.
Stake Decrease:
Global Payments (GPN): GPN is now one of the top five ~ 14% of the portfolio stake. It was first purchased in Q2 2019 at prices between $ 136 and $ 163 and rose ~ 200% in the next quarter at prices between $ 154 and $ 175. There were ~ 70% sales in Q1 2020 at prices between $ 116 and $ 209. The next quarter saw another ~ 80% reduction in prices between $ 126 and $ 190. The position was rebuilt in Q3 2020 at prices between ~ $ 161 and ~ $ 185. The next quarter saw a ~ 30% increase in prices between ~ $ 156 and ~ $ 215. There was another ~ 70% stake increase in Q1 2021 at prices between ~ $ 177 and ~ $ 216. That was followed by a one-third increase in Q3 2021 in prices between ~ $ 157 and ~ $ 195. The stock is currently trading at ~ $ 132. This quarter had minor trimming.
Euronet Worldwide (EEFT): EEFT is a large (top five) ~ 12% portfolio stake purchased in Q3 2020 at prices between ~ $ 87 and ~ $ 106 and the stock is currently trading at ~ $ 122. There was a ~ 60% stake increase in Q4 2020 at prices between ~ $ 88 and ~ $ 145. That was followed by a ~ 45% increase last quarter in prices between ~ $ 101 and ~ $ 135. This quarter saw ~ 8% trimming.
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 thrown in next quarter at prices between $ 73 and $ 121.
Adobe (ADBE) and Meta Platforms (FB), formerly Facebook: These two -minute small stakes (less than ~ 0.20% of the portfolio each) were reduced this quarter.
Keep It Steady:
Microsoft Corp. (MSFT): MSFT currently has the largest position at ~ 27% of the portfolio. It was first purchased in Q1 2019 at prices between $ 97 and $ 120 and rose ~ 90% in the next quarter at prices between $ 119 and $ 138. Last quarter there were ~ 14% sales at prices between ~ $ 282 and ~ $ 343. The stock is currently trading at ~ $ 273.
Livet Corp. (LTHM): LTHM had ~ 16% of the portfolio stake established in Q3 2019 at prices between $ 5.50 and $ 7.75 and rose ~ 60% in the 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 $ 34.49.
Note: Livet is a spinoff from FMC Corporation (FMC) that began trading in October 2018 at ~ $ 16.25 per share.
Amazon.com (AMZN), Amphenol Corp. (APH), Constellation Brands (STZ), Ecolab (ECL), Procter & Gamble (PG), ServiceNow (NOW), and Uber Technologies (UBER): These very small stakes (less than ~ 0.75% of the portfolio each) have remained stable this quarter.
The spreadsheet below highlights the changes in Karr’s 13F stock holding in Q1 2022:
Robert Karr – Joho Capital Report 2022 13F Q/Q Comparison (John Vincent (author))