The investment firm co-founded by former vice president Al Gore recently made significant changes to its investments in listed stocks in the United States.
Generation Investment Management has a significant new investment in network giant Cisco Systems (ticker: CSCO), and also bought large amounts of Analog Devices (ADI) and Applied Materials (AMAT) shares in the third quarter. The company also reduced its stake in the Salesforce.com (CRM) stock. Generation disclosed the transactions, among other things, in a form filed with the Securities and Exchange Commission.
Generation, of which Gore is chairman, declined to comment on stock transactions.
The company’s largest public fund under his management, Lombard Odier Funds-Generation Global, recently made a comeback. The fund is now beating its benchmark, the MSCI World Index, with a gain of 1.04% since the start of the year through October 31, compared to a drop of 1.42% in the index. Generation Global also beats the benchmark for each period. Three months ago, it was lagging behind the index since the start of the year.
Generation revealed that it held 18.4 million Cisco shares as of September 30. She had none at the end of the second trimester.
Cisco stock has fallen 14.6% year-to-date through Friday’s close, but that includes a 4.0% rise so far in the fourth quarter. By comparison, the S&P 500 Index, a broad measure of the market, has risen 10.1% so far this year, including a gain of 5.8% so far in the fourth quarter.
Cisco’s recent hike came after the company’s strong first quarter tax report. In October, Cisco was ordered to pay up to $ 3.3 billion in damages in a patent infringement case.
Generation bought an additional 3.1 million shares of Analog Devices during the quarter, ending in September with 5.8 million shares of the chipmaker.
Analog Devices shares are up 13.5% year-to-date, supported by a 15.5% increase so far in the fourth quarter.
The company agreed in July to acquire Maxim Integrated Products (MXIM). The strength of its communications and industry segments fueled the strong third quarter of Analog Devices, released in August.
Applied Materials inventory has jumped 25.7% year-to-date, including a 29.1% rise in October and November.
Fiscal fourth quarter earnings, released in November, were strong, and we noted that Applied Materials stock could represent a cheap growth game.
Generation bought an additional 1.1 million shares of Applied Materials to end the third quarter with 5.3 million shares of the chipmaking hardware maker.
The company sold 512,480 Salesforce shares in the quarter ending September with 756,402 shares of the software giant.
Salesforce stock has jumped 58.7% so far this year, including a 2.7% gain so far in the fourth quarter.
Inside Scoop is a regular feature of Barron that covers the stock trading of corporate executives and board members – called insiders – as well as big shareholders, politicians and other important people. Due to their insider status, these investors are required to disclose stock transactions to the Securities and Exchange Commission or other regulatory groups.
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