Robert Karr’s Joho Capital portfolio tracking – Q4 2022 update
This article is part of a series that provides an ongoing analysis of changes made to Robert Karr’s 13F stock portfolio on a quarterly basis. It is based on Karr’s regulatory 13F form filed on 02/14/2023. please visit our Tracking Robert Karr’s Joho Capital portfolio Article for an idea of his investment philosophy and ours last update for the movements of the fund in the third quarter of 2022.
During the quarter, Karr’s 13F stock portfolio declined approximately 14% in value from approximately $358 million to approximately $309 million. The number of holdings increased from 14 to 15. The top three positions represent ~66% of 13F assets: Microsoft, Euronet Worldwide and Quanta Services.
Robert Karr was one of the most successful of the “Tiger Boys” (protégés of Julian Robertson & his legendary Tiger Fund). Although his primary area of expertise is Asian equities, around 30% of assets are typically invested in US-listed 13F securities. The fund (launched in 1996) is closed external money and became a family office in 2014. To learn more about Robert Karr and Tiger Cubs, read the book Julian Robertson: A Tiger in the Land of Bulls and Bears.
Quanta Services (PWR), SolarEdge Technologies (SEDG), Shoals Technologies (SHLS) and Array Technologies (ARRY): These are the new positions for this quarter. The large (top 3) PWR holding of 7.80% started at prices between ~$123 and ~$153 and the stock is currently trading above this range at ~$162. The large (top 5) 7.79% SEDG position was bought at prices between ~$193 and ~$336 and is now at ~$325. The 5.87% interest in SHLS was priced between $19.45 and $31.20 and is now priced at $24.27. ARRY was a 4.53% stake bought at prices between $14.60 and $23.55 and is now at $21.47.
Sale of shares:
Alibaba Group ADR (BABA): BABA was Karr’s fourth-largest holding at around 11% of the portfolio last quarter. It was established in the second quarter of 2015 at prices ranging from $79.50 to $94 and almost doubled in the following quarter at prices ranging from $57 to $84. Q1 2016 saw another increase of ~50% with prices between $60.50 and $81.50. Since then, only minor adjustments have been made. In the first quarter of 2021, ~25% was sold at prices between ~$223 and ~$271. In the third quarter of 2021, the stake was increased by two-thirds at prices ranging from ~$140 to ~$222. The second quarter of 2022 saw a ~20% discount with prices ranging from ~$81 to ~$120. This was followed by ~40% selling last quarter at prices ranging from ~$78 to ~$122. Sales were priced between ~$63 and ~$94 during the quarter. The stock is currently trading at ~$87.
Ecolab (ECL) and Generac Holdings (GNRC): These two tiny holdings (less than ~0.5% of the portfolio each) were sold during the quarter.
Rivian Automotive (RIVN): RIVN’s 3.39% stake was acquired last quarter at prices ranging from about $26 to about $40, and the stock is now well below that range at about $15. This quarter saw a ~150% share increase priced between ~$18 and ~$37.
Euronet Worldwide (EEFT): EEFT is a large (top 3) ~13% of portfolio stake bought in Q3 2020 at prices ranging from ~$87 to ~$106. In Q4 2020 there was a ~60% share increase at prices ranging from ~$88 to ~$145. This was followed by a ~45% surge in Q4 2021 at prices between ~$101 and ~$135. The first half of 2022 saw a ~18% cut, followed by a ~30% cut this quarter at prices ranging from ~$74 to ~$97. The stock is currently trading at ~$109.
Note: Euronet Worldwide already had a previous round trip in its portfolio. A small 0.93% of the portfolio position was bought during the first quarter of 2020 at prices between $69 and $167. It was sold over the next quarter at prices ranging from $73 to $121.
livent corp (LTHM): LTHM was a large (top 3) ~26% of the portfolio stake started in Q3 2019 at prices between $5.50 and $7.75 and up ~60% in the next quarter at prices between $6.45 and $8.95 increase. In Q2 2020 ~40% was sold at prices between $4.60 and $8.75. In Q4 2020, the price increased by two-thirds with prices between $9 and $19. Last quarter there was a ~25% discount with prices ranging from ~$20 to ~$35. This quarter, the share was almost sold out with prices ranging from ~$19 to ~$34. The stock is currently trading at $23.49.
Note: Livent is a FMC Corporation (FMC) spin-off trading at ~$16.25 per share as of October 2018.
Amphenol Corp. (APH) and Autodesk, Inc. (ADSK): These two small holdings (less than ~1% of the portfolio each) were trimmed this quarter.
microsoft corp (MSFT): MSFT is currently the largest position at ~46% of the portfolio. It was first bought in the first quarter of 2019 at prices between $97 and $120 and rose ~90% in the next quarter at prices between $119 and $138. In the fourth quarter of 2021, ~14% were sold at prices between ~$282 and ~$343. The stock is currently trading at ~$254.
Intuit Inc. (INTU): INTU accounts for a sizable 4.78% of the portfolio position, which was added last quarter at prices between ~$380 and ~$489, and the stock is currently trading at ~$417.
Constellation Brands (STZ), Estee Lauder (EL), Procter & Gamble (PG) and Simon Property Group (SPG): These very small holdings (less than ~1.50% of the portfolio each) have been held steady this quarter.
The following table shows changes in Karr’s 13F stock holdings during Q4 2022:
Editor’s note: This article covers one or more securities that are not traded on a major US exchange. Please be aware of the risks associated with these stocks.