05/03/2021

RGRM-Vacation

Your Unforgettable Journey

Fairfax Exits Fitbit, Gildan Activewear

Prem Watsa (Trades, Portfolio)’s Fairfax Financial Holdings sold shares of the following stocks during the fourth quarter, which ended on Dec. 31.

Fitbit

The firm exited its position in Fitbit Inc. (NYSE:FIT). The trade had an impact of -0.84% on the portfolio.

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The company, which manufactures health and fitness devices, has a market cap of $1.89 billion and an enterprise value of $1.55 billion.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on equity of -53.61% and return on assets of -21.15% are underperforming 93% of companies in the hardware industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 5.11.

The largest guru shareholders of the company are Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.83% of outstanding shares, Philippe Laffont (Trades, Portfolio) with 1.17% and Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 0.10%.

Gildan Activewear

The Gildan Activewear Inc. (NYSE:GIL) holding was closed, impacting the portfolio by -0.81%.

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The company, which manufactures T-shirts, underwear, socks and hosiery, has a market cap of $5.51 billion and an enterprise value of $6.40 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of -16.1% and return on assets of -8.1% are underperforming 82% of companies in the manufacturing, apparel and accessories industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.22 is below the industry median of 0.45.

The largest guru shareholder of the company is Richard Pzena (Trades, Portfolio) with 7.58% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.05% and Private Capital (Trades, Portfolio) with 0.05%.

NetEase

The firm divested of its NetEase Inc. (NASDAQ:NTES) stake. The portfolio was impacted by -0.37%.

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The Chinese online services provider has a market cap of $90.32 billion and an enterprise value of $79.27 billion.

GuruFocus gives the company a profitability and growth rating of 10 out of 10. The return on equity of 19.74% and return on assets of 11.31% are outperforming 77% of companies in the interactive media industry. Its financial strength is rated 8 out of 10 with the cash to debt of 4.42.

The largest guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 0.39% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.23% and Charles Brandes (Trades, Portfolio) with 0.04%.

Lumen Technologies

The Lumen Technologies Inc. (NYSE:LUMN) position was reduced by 4.75%, impacting the portfolio by -0.06%.

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The U.S. telecommunications company has a market cap of $12.58 billion and an enterprise value of $44.39 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of -9.47% and return on assets of -1.96% are outperforming 80% of companies in the telecommunication services industry. Its financial strength is rated 3 out of 10 with a cash-debt ratio of 0.01.

The largest guru shareholder of the company is Mason Hawkins (Trades, Portfolio) with 5.96% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.37% and Laffont with 0.07%.

Central European Media Enterprises

The firm exited its position in Central European Media Enterprises Ltd. (NASDAQ:CETV). The portfolio was impacted by -0.05%.

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The retailer of athletic apparel, footwear and equipment has a market cap of $1.17 billion and an enterprise value of $1.61 billion.

The return on equity of 23.88% and return on assets of 7.27% are outperforming 100% of companies in the media, diversified industry. The cash-debt ratio of 0.29 is below the industry median of 1.01.

The largest guru shareholder of the company is Pioneer Investments (Trades, Portfolio) with 0.12% of outstanding shares.

Culp

The Culp Inc. (NYSE:CULP) position was eliminated, impacting the portfolio by -0.05%.

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The company, which manufactures mattress fabrics and sewn covers, has a market cap of $199 billion and an enterprise value of $150 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 3-23.19% and return on assets of -15.63% are underperforming 89% of companies in the manufacturing, apparel and accessories industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 8.82 is above the industry median of 0.45.

The largest guru shareholders of the company include Simons’ firm with 7.71% of outstanding shares and Hotchkis & Wiley with 0.88%.

Disclosure: I do not own any stocks mentioned.

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