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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 Karr’s Form 13F regulation filed on 2/14/2022. Please visit our article on Tracking the Joho Capital Portfolio by Robert Karr for an idea of his investment philosophy and our final update for fund transfers in Q3 2021.
This quarter, Karr’s 13F stock portfolio value dropped ~ 3% from $ 744M to $ 723M. The number of holdings remained steady at 20. The top three positions represent ~ 59% of 13F assets: Microsoft, Alibaba Group Holdings, and Global Payments.
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:
Simon Property Group (SPG) at Fidelity National Information Services (FIS): Two tiny (less than 0.25% of portfolio each) stakes were established in the quarter.
Stake disposals:
Peloton Interactive (PTON) and Performance Food Group (PFGC): These two tiny (less than 0.25% of portfolio each) stakes were 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 last quarter in prices between ~ $ 140 and ~ $ 222. The stock is currently trading at ~ $ 97.50. There was a marginal increase in this quarter.
Global Payments (GPN): GPN is now one of the top three ~ 15% 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 last quarter in prices between ~ $ 157 and ~ $ 195. The stock is currently trading at ~ $ 123. This quarter saw a marginal further increase.
Euronet Worldwide (EEFT): EEFT has a large ~ 11% portfolio stake purchased in Q3 2020 at prices between ~ $ 87 and ~ $ 106 and the stock is currently trading at ~ $ 106. There was a ~ 60% stake increase in Q4 2020 at prices between ~ $ 88 and ~ $ 145. That was followed by a ~ 45% increase this quarter in prices between ~ $ 101 and ~ $ 135.
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.
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. The stock is currently trading at $ 40.40. This quarter saw a marginal further increase.
Alphabet Inc. (GOOG), Amazon.com (AMZN), Autodesk Inc. (ADSK), and Uber Technologies (UBER): These small (less than ~ 1% of portfolio each) stake increased this quarter.
Stake Decrease:
Microsoft Corp (MSFT): MSFT currently has the largest position at ~ 29% 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. Q3 2019 saw a ~ 14% stake increase while in Q1 2020 there was a similar sale. This quarter saw ~ 14% sales at prices between ~ $ 282 and ~ $ 343. The stock is currently trading at ~ $ 276.
Adobe Systems (ADBE): The very small 0.21% portfolio stake in ADBE decreased by ~ 50% this quarter.
Keep It Steady:
Lively Corp (LTHM): LTHM had ~ 14% 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 $ 22.30. Last quarter there was also a ~ 13% stake increase.
Note: Livet is a spinoff from FMC Corporation (FMC) that began trading in October 2018 at ~ $ 16.25 per share.
Amphenol Corp (APH), Constellation Brands (STZ), Ecolab (ECL), Estee Lauder (EL), Meta Platforms (FB) from Facebook, Procter & Gamble (PG), and ServiceNow (NOW): These very small stakes (less than ~ 0.65% of the portfolio each) have remained stable this quarter.
The spreadsheet below highlights the changes in Karr’s 13F stock holding in Q4 2021:
Robert Karr – Joho Capital Report Q/Q Comparison 2021 13F (John Vincent (author))
Source: John Vincent. Data generated from Joho Capital’s 13F filing for Q3 2021 and Q4 2021.
Editor’s Note: This article discusses one or more securities that do not trade on a major US exchange. Please be aware of the risks associated with these stocks.