Generation was founded in 2004 by Al Gore and David Blood. The firm now 45 people represent 16 countries and speak over 10 languages. It has a team of 21 investment professionals who have over 150 years of combined investment experience. Generation’s investment approach is based on the idea that sustainability factors will drive a company’s return over the long term. It has built a global research platform to integrate sustainability research into fundamental equity analysis. We believe that by focusing on Generation Investment’s top stock picks, investors are likely to beat the market in the long term.
Below we compiled a list of top 15 positions in Generation Investment’s portfolio at the end of September.
Henry Schein Inc (HSIC): Henry Schein, Inc. is a distributor of healthcare products and services primarily to office-based healthcare practitioners. The company’s third-quarter earnings climbed a smaller-than-expected 4.6% as Henry Schein missed last year’s boost from sales of flu shots. It reported a profit of $92 million, or 99 cents per share, up from $87.9 million, or 94 cents per share a year ago. Generation invested $295 million in HSIC and it returned 4.73% since the end of September. HSIC has a market cap of $5.97B and a P/E ratio of 17.29. Robert Joseph Caruso had $100+ million invested in HSIC. Chuck Royce and Ken Fisher also had about $40 million invested in HSIC.
Becton Dickinson & Co (BDX): Becton Dickinson and Company is a global medical technology company engaged in the development, manufacture and sale of medical devices, instrument systems and reagents used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. The company reported net income of $300 million, or $1.36 per share in the July-September quarter, down from $396.7 million, or $1.68 per share for the same quarter a year ago. Its revenue grew 9.5% to $2.05 billion from $1.87 billion. Generation invested $251 million in BDX and it returned 0.33% since the end of September. BDX has a market cap of $16.16B and a P/E ratio of 13.25. David Einhorn also invested $200+ million in BDX.
Danaher Corp (DHR): Danaher Corporation designs, manufactures and markets professional, medical, industrial and commercial products and services. The company reported a 46% increase in sales year over year for the third quarter, beating analysts’ estimates on the top and bottom line. It posted $4.52 billion in sales, compared with $3.09 billion a year ago and analysts’ expectations of $4.46 billion. But its third-quarter profit fell 19%, as expenses for the acquisition of medical test company Beckman Coulter Inc. offset higher sales. Generation invested $176 million in DHR and it returned 15.86% since the end of September. DHR has a market cap of $34.10B and a P/E ratio of 18.43. George Soros had $80+ million invested in DHR.
Northern Trust Corp (NTRS): Northern Trust is a financial holding company provides asset servicing, fund administration, investment management, banking and fiduciary solutions The company reported net income of $170.4 million, or 70 cents per share for the third quarter of 2011, up from $155.6 million, or 64 cents per share in the same period last year. Revenue rose 9% to $971.5 million, beating analysts’ estimates of $962.8 million. Generation invested $163 million in NTRS and it returned 10.98% since the end of September. NTRS has a market cap of $9.57B and a P/E ratio of 15.42. John Paulson had $46 million invested in NTRS. Israel Englander, Chuck Royce and Jim Simons all had a certain portion of their portfolio invested in NTRS.
Ebay Inc (EBAY): eBay bring together buyers and sellers every day on a local, national and international basis through a range of Websites. The company reported revenues of $3.0 billion for the third quarter of 2011. Third-quarter net income was $490.5 million, or 37 cents a share, up from $432 million, or 33 cents a share for the same quarter a year ago. Generation invested $157 million in EBAY and it returned 4.27% since the end of September. EBAY has a market cap of $40.50B and a P/E ratio of 22.82. Bill Miller had $238 million of EBAY stocks. Ken Griffin also had $189 million invested in EBAY.
