Leon Cooperman Curbs 2 Top Holdings, Enters Elevance Health Position

Guru reveals 2nd-quarter portfolio

Abstract

• The guru established 5 new positions, together with in Elevance Well being and DT Midstream.
• He curbed his holdings of Alphabet
  GOOGL
  , Chimera Funding and Apollo International.

Omega Advisors chief Leon Cooperman (Trades, Portfolio) disclosed his portfolio for the second quarter earlier this month.

On the finish of 2018, the guru transformed his New York-based hedge fund right into a household workplace construction. In a letter to purchasers, Cooperman, who’s in his 80s, mentioned he determined to make the change as a result of he didn’t wish to spend the remainder of his life “chasing the S&P 500 and targeted on producing returns on investor capital.” His funding technique combines a macro view with basic valuations.

In the course of the three months ended June 30, 13F filings present Cooperman entered 5 new positions, bought out of 4 shares and added to or diminished quite a lot of different current investments. His most notable trades included new holdings in Elevance Well being Inc. (ELV, Monetary) and DT Midstream Inc. (DTM, Monetary) in addition to diminished bets on Alphabet Inc. (GOOGL, Monetary), Chimera Funding Corp. (CIM, Monetary) and Apollo International Administration
APO
Inc. (APO, Monetary).

Buyers ought to be conscious that 13F filings don’t give a whole image of a agency’s holdings because the studies solely embody its positions in U.S. shares and American depository receipts, however they will nonetheless present priceless info. Additional, the studies solely mirror trades and holdings as of the most-recent portfolio submitting date, which can or is probably not held by the reporting agency in the present day and even when this text was printed.

Elevance Well being

The guru invested in 60,000 shares of Elevance Well being (ELV, Monetary), allocating 1.45% of the fairness portfolio to the place. The inventory traded for a median value of $461.29 per share through the quarter.

Beforehand often called Anthem, the Indianapolis-based medical health insurance firm has a $106.24 billion market cap; its shares had been buying and selling round $450.84 on Tuesday with a price-earnings ratio of 16.89, a price-book ratio of two.78 and a price-sales ratio of 0.64.

The GF Worth Line
VALU
suggests the inventory is modestly undervalued at the moment primarily based on its historic ratios, previous monetary efficiency and analysts’ future earnings projections.

At 93 out of 100, the GF Rating signifies the corporate has excessive outperformance potential. Whereas it acquired excessive scores for profitability, progress, worth and momentum, the monetary energy rank is extra average.

Of the gurus invested in Elevance, Baillie Gifford (Trades, Portfolio) has the biggest stake with 1.33% of its excellent shares. The Vanguard Well being Care Fund (Trades, Portfolio), First Eagle Funding (Trades, Portfolio), Hotchkis & Wiley and several other different gurus even have notable holdings.

DT Midstream

Cooperman picked up 300,000 shares of DT Midstream (DTM, Monetary), dedicating 0.81% of the fairness portfolio to the holding. Shares traded for a median value of $47.87 every through the quarter.

The midstream power firm, which is headquartered in Detroit, has a market cap of $5.07 billion; its shares had been buying and selling round $52.27 on Tuesday with a price-earnings ratio of 13.76, a price-book ratio of 1.25 and a price-sales ratio of 5.51.

In line with the value chart, the inventory has gained practically 25% since being spun off of DTE Vitality
DTE
(DTE, Monetary) in July of 2021.

The GF Rating of 26 additionally warns the corporate has poor efficiency potential. Nonetheless, because it solely acquired scores for profitability and monetary energy, its full prospects should not mirrored.

With 0.31% of its excellent shares, Cooperman is DT Midstream’s largest guru shareholder. Different prime guru buyers embody Paul Tudor Jones (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jefferies Group (Trades, Portfolio) and John Hussman (Trades, Portfolio).

Alphabet

The investor curbed his funding in Alphabet’s (GOOGL, Monetary) Class A inventory by 23.53%, promoting 200,000 shares. The transaction had an influence of -1.25% on the fairness portfolio. In the course of the quarter, the inventory traded for a median per-share value of $114.92.

Cooperman now holds 650,000 shares in whole, which make up 4.22% of the fairness portfolio. GuruFocus estimates he has gained 46.72% on the funding, which is at the moment his 10^th-largest holding.

The communications providers firm primarily based in Mountain View, California, which owns the Google
GOOG
search engine, YouTube and quite a lot of different companies, has a $1.72 trillion market cap; its Class A shares had been buying and selling round $135.77 on Tuesday with a price-earnings ratio of 28.76, a price-book ratio of 6.42 and a price-sales ratio of 6.12.

Primarily based on the GF Worth Line, the inventory seems to be pretty valued at the moment.

With excessive scores for 4 of the factors and a extra average worth rank, the GF Rating of 98 means the corporate has excessive outperformance potential.

Ken Fisher (Trades, Portfolio) is Alphabet’s largest guru shareholder with a 0.34% stake. The inventory can be being held by PRIMECAP Administration (Trades, Portfolio), Dodge & Cox, the Harbor Capital Appreciation Fund (Trades, Portfolio), Philippe Laffont (Trades, Portfolio), Invoice Nygren (Trades, Portfolio) and several other different gurus.

Chimera Funding

The guru slashed his place in Chimera Funding (CIM, Monetary) by 98.79%, dumping 2.51 million shares. The transaction impacted the fairness portfolio by -0.88%. The inventory traded for a median value of $5.31 per share through the quarter.

He now holds 30,834 shares, which occupy 0.03% of the fairness portfolio. GuruFocus information reveals Cooperman has misplaced 10.40% on the long-held funding.

The American actual property funding belief, which is invested in a diversified portfolio of mortgage belongings, has a market cap of $1.34 billion; its shares traded round $5.90 on Tuesday with a price-book ratio of 0.52 and a price-sales ratio of 14.35.

Whereas there’s not sufficient information for a GF Worth Line, the inventory has gained 0.51% 12 months thus far.

The GF Rating of 48 implies the corporate has weak efficiency potential on the again of a excessive momentum rank and low scores for profitability, monetary energy and worth.

Caxton Associates (Trades, Portfolio) is now the REIT’s largest guru shareholder with 0.06% of its excellent shares. Cooperman holds 0.01%.

Apollo International Administration

Cooperman trimmed the Apollo International Administration (APO, Monetary) stake by 11.61%, shedding 213,400 shares. The transaction had an influence of -0.81% on the fairness portfolio. In the course of the quarter, shares traded for a median value of $66.81 every.

He now holds 1.63 million shares, making up 6.77% of the fairness portfolio because the fourth-largest place. GuruFocus discovered he has gained 30.75% on the funding thus far.

The non-public fairness agency headquartered in New York has a $50.32 billion market cap; its shares had been buying and selling round $88.77 on Tuesday with a price-earnings ratio of 41.87, a price-book ratio of 6.56 and a price-sales ratio of 1.92.

In line with the GF Worth Line, the inventory is modestly undervalued at the moment.

Pushed by average to excessive scores for all 5 standards, the GF Rating of 84 suggests the corporate has good outperformance potential.

Holding a 2.18% stake, Chase Coleman (Trades, Portfolio) is Apollo International’s largest guru shareholder. Glenn Greenberg (Trades, Portfolio) and Tom Gayner (Trades, Portfolio) even have notable holdings.

Further trades and portfolio composition

In the course of the quarter, Cooperman additionally bought out of Aspen Group Inc. (ASPU, Monetary) and boosted his holdings of Citigroup
C
Inc. (C, Monetary), WillScot Cell Mini Holdings Corp. (WSC, Monetary), Vitality Switch LP (ET, Monetary), Arbor Realty Belief Inc. (ABR, Monetary) and Mirion Applied sciences Inc. (MIR, Monetary).

Omega’s $1.84 billion fairness portfolio, which consists of 54 shares, is most closely invested within the power, monetary providers and industrials sectors.

Disclosures

I/we’ve got no positions in any shares talked about, and don’t have any plans to purchase any new positions within the shares talked about throughout the subsequent 72 hours.