Vanguard Sells Medtronic, Cigna in 2nd Quarter

Largest sales of the most recent quarter

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Aug 17, 2017
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Vanguard Health Care Fund (Trades, Portfolio) owns a portfolio composed of 74 stocks with a total value of $46.532 billion. During the second quarter the guru sold shares in the following stocks:

The investor reduced its shares in Medtronic PLCĂ‚ (MDT) by 11.99% with an impact of -0.41% on the portfolio.

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The medical technology company primarily manufactures and sells device-based medical therapies. It operates in Cardiac and Vascular, Minimally Invasive Therapies, Restorative Therapies and Diabetes segments.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The return on equity (ROE) of 7.79% and return on assets (ROA) of 4.08% are outperforming 64% of the companies in the Global Medical Devices industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.41 is below the industry median of 2.54.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.49% of outstanding shares followed by Vanguard Health Care Fund with 1.21%, Dodge & Cox with 0.9%, PRIMECAP Management (Trades, Portfolio) with 0.82%, Manning & Napier Advisors Inc. with 0.38%, Pioneer Investments (Trades, Portfolio) with 0.36%, Jeremy Grantham (Trades, Portfolio) with 0.31% and Mairs and Power (Trades, Portfolio) with 0.26%.

The guru reduced its position in Vertex Pharmaceuticals Inc. (VRTX) by 10.66% impacting the portfolio by -0.34%.

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The company is engaged in the business of discovering, developing, manufacturing and commercializing small molecule drugs for patients with serious diseases in specialty markets.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. The ROE of 20.49% and ROA of 9.09% are outperforming 88% of the companies in the Global Biotechnology industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 2.94 is below the industry median of 37.83.

Manning & Napier Advisors is another notable shareholder among the gurus with 0.65% of outstanding shares followed by Pioneer Investments with 0.53%, Spiros Segalas (Trades, Portfolio) with 0.26%, Steven Cohen (Trades, Portfolio) with 0.11%, David Carlson (Trades, Portfolio) with 0.09%, Eaton Vance Worldwide Health Sciences Fund (Trades, Portfolio) with 0.07% and Jim Simons (Trades, Portfolio) with 0.02%.

The investor’s holding of Regeneron Pharmaceuticals Inc. (REGN) was reduced by 10.46% with an impact of -0.33% on the portfolio.

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The integrated biopharmaceutical company discovers, invents, develops, manufactures and commercializes medicines for the treatment of serious medical conditions.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 22.24% and ROA of 14.28% are outperforming 94% of the companies in the Global Biotechnology industry. Financial strength has a rating of 8 out of 10. The cash-debt ratio of 1.85 is below the industry median of 37.83.

Frank Sands (Trades, Portfolio) is another notable shareholder among the gurus with 2.76% of outstanding shares followed by Manning & Napier Advisors with 0.28%, Segalas with 0.25%, Simons with 0.22%, Cohen with 0.07%, Eaton Vance Worldwide Health Sciences Fund with 0.04% and Ron Baron (Trades, Portfolio) with 0.01%.

The fund’s UnitedHealth Group Inc. (UNH) position was reduced by 5.83%. The trade had an impact of -0.32% on the portfolio.

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It is a diversified health care company in the U.S. It designs products, provides services and applies technologies that improve access to health and well-being services and makes health care more affordable.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 20.32% and ROA of 6.32% are outperforming 64% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.56 is below the industry median of 1.38.

The largest shareholder among the gurus is Vanguard Health Care Fund with 1.47% of outstanding shares followed by Dodge & Cox with 1.06%, Grantham with 0.37%, Chris Davis (Trades, Portfolio) with 0.3%, Bill Nygren (Trades, Portfolio) with 0.23%, Barrow, Hanley, Mewhinney & Strauss with 0.17% and Pioneer Investments with 0.13%.

The fund reduced its Merck & Co. Inc. (MRK) holding by 6.83%. The transaction had an impact of -0.31% on the portfolio.

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It is a health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies and animal health products.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 12.06% and ROA of 5.24% are outperforming 54% of the companies in the Global Drug Manufacturers - Major industry. Financial strength has a rating of 5 out of 10.

Barrow, Hanley, Mewhinney & Strauss is another notable shareholder among the gurus with 0.58% of outstanding shares followed by Dodge & Cox with 0.5%, Simons with 0.27%, Ken Fisher (Trades, Portfolio) with 0.26%, PRIMECAP Management with 0.18%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.12% and Charles Brandes (Trades, Portfolio) with 0.1%.

The firm’s Cigna Corp. (CI) holding was reduced by 11.73%. The trade had an impact of -0.3% on the portfolio.

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The company operates in the health care industry. It provides medical, dental, disability, life and accident insurance products.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 14.32% and ROA of 3.25% are underperforming 68% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.87 is below the industry median of 1.38.

The largest shareholder among the gurus is Dodge & Cox with 5.62% of outstanding shares followed by Larry Robbins (Trades, Portfolio) with 1.92%, Lee Ainslie (Trades, Portfolio) with 0.69%, Richard Pzena (Trades, Portfolio) with 0.88%, Barrow, Hanley, Mewhinney & Strauss with 0.77%, Simons with 0.26% and David Einhorn (Trades, Portfolio) with 0.17%.

The guru closed its position in Amgen Inc. (AMGN) with an impact of -0.19% on the portfolio.

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It is a biotechnology company that discovers, develops, manufactures and delivers human therapeutics. The company's business segment is human therapeutics.

GuruFocus gives the stock a profitability and growth rating of 10 out of 10. The ROE of 26.69% and ROA of 10.51% are outperforming 91% of the companies in the Global Biotechnology industry. Financial strength has a rating of 6 out of 10 with a cash-debt ratio of 1.12 that is below the industry median of 37.83.

PRIMECAP Management is the largest shareholder among the gurus with 3.3% of outstanding shares followed by Simons with 0.33%, Carlson with 0.06%, Joel Greenblatt (Trades, Portfolio) with 0.05%, Cohen with 0.04% and Third Avenue Management (Trades, Portfolio) with 0.03%.

The eighth-largest cut was Parexel International Corp. (PRXL). The position was closed with an impact of -0.16% on the portfolio.

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It is a biopharmaceutical services company that offers clinical research, clinical logistics, medical communications and technology products and services to the pharmaceutical, biotechnology and medical device industries.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 19.84% and ROA of 5.63% are outperforming 72% of the companies in the Global Diagnostics and Research industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.41 is below the industry median of 2.44.

The largest shareholder among the gurus is Fisher with 4.14% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 0.29% and Mario Gabelli with 0.02%.

Disclosure: I do not own shares of any stocks mentioned in this article.