Stocks Bought in Q3

DENTSPLY SIRONA Inc. (NASDAQ:XRAY)

– Shares Bought During Q3: 2.20 million
– Value of Holding (as of September 30): $83.03 million

– Q4 Return (through December 14): -2.04%

– Forward P/E Ratio: 16.88

– Forward Dividend Yield: 0.95%

ValueAct opened a new position in DENTSPLY SIRONA Inc. (NASDAQ:XRAY) during Q3 after shares of the company imploded by nearly 50% during the first three quarters of the year. There was a 22% jump in the number of hedge fund shareholders of the dental equipment company during the quarter after a large decline during Q1.

Hawaiian Electric Industries, Inc. (NYSE:HE)

– Shares Bought During Q3: 1.20 million
– Value of Holding (as of September 30): $42.61 million

– Q4 Return (through December 14): +8.88%

– Trailing P/E Ratio: 22.85

– Forward Dividend Yield: 3.20%

ValueAct also added Hawaiian Electric Industries, Inc. (NYSE:HE), one of the 50 Best Utility Dividend Stocks To Invest In, to its 13F portfolio during the third quarter, being the stock bought for its Spring Fund. In a presentation at the Capitalize for Kids conference in October, Ubben said the utility company represents an “Amazon-like opportunity” and is the first electricity-related growth stock in “a long, long time”.

Citigroup Inc. (NYSE:C)

– Shares Bought During Q3: 1.05 million
– Value of Holding (as of September 30): $1.88 billion

– Q4 Return (through December 14): -23.31%

– Forward P/E Ratio: 7.22

– Forward Dividend Yield: 3.27%

Citigroup Inc. (NYSE:C) was one of two major investment banks that ValueAct kept pumping money into during Q3, as it continued to push the weighting of finance stocks within its 13F portfolio ever higher. The fund has called the banking sector “irrationally cheap” and said “major banks are safer investments than they have ever been in our lifetimes,” in its investor letters from Q1 and Q2.

Morgan Stanley (NYSE:MS)

– Shares Bought During Q3: 2.10 million
– Value of Holding (as of September 30): $969 million

– Q4 Return (through December 14): -14.88%

– Forward P/E Ratio: 7.67

– Forward Dividend Yield: 3.03%

ValueAct also hiked its Morgan Stanley (NYSE:MS) position by another 11% in the third quarter. Billionaires were taking notice of how cheap Morgan Stanley shares have become as well, as it ranked highly among the 20 Dividend Stocks That Billionaires Are Piling On. The finance sector has continued to struggle into Q4 however, falling into a bear market.

Stocks Sold in Q3

Twenty-First Century Fox, Inc. (NASDAQ:FOX)

– Shares Sold During Q3: 28.63 million
– Value of Holding (as of September 30): $0

– Q4 Return (through December 14): +6.50%

– Trailing P/E Ratio: 18.55

– Forward Dividend Yield: 0.74%

Jeffrey Ubben stepped down from his role as a director on Twenty-First Century Fox, Inc. (NASDAQ:FOX)’s board back in April and began selling off ValueAct’s large stake in the company during that same quarter. In the third quarter ValueAct unloaded the rest of its position, selling out of the stock around its all-time highs.

Disclosure: None