The latest transactions by star managers

Every quarter, the star managers of the US stock market publish their latest portfolio movements. This article is based on the 13Fs published each quarter on the SEC (Securities and Exchange Commission) website. These quarterly reports list the assets under management of investment managers or listed holding companies with control over more than $100 million in assets and who hold so-called "long" US positions. Form 13F covers Registered Investment Advisers (RIAs), banks, insurance companies, hedge funds, trust companies, pension funds and mutual funds. This report is published no later than 45 days after the end of the quarter concerned. This form only includes US or foreign positions listed in the US. Here is an analysis of the latest moves in the fourth quarter of 2024 by legendary investors such as Warren Buffett, Terry Smith, Daniel Loeb, Chuck Akre, David Tepper, Howard Marks, Pat Dorsey, Seth Klarman, Bill Ackman, Mohnish Pabrai and François Rochon.

Warren Buffett

Warren Buffett, the legendary manager of Berkshire Hathaway, continues to follow a long-term investment strategy focused on quality companies. Last quarter, he acquired Constellation Brands, a strategic addition to his portfolio. He also strengthened his positions in Occidental Petroleum, Verisign, Sirius XM Holdings, Domino's Pizza and Pool Corporation, companies he considers to offer solid growth prospects. On the other hand, he reduced his holdings in several companies, including Bank of America, Capital One Financial, Citigroup, T-Mobile, Charter Communications, Liberty Media Formula One, Louisiana-Pacific Corporation and Nu Holdings. Finally, he sold his position in Ulta Beauty.

Terry Smith

Terry Smith, the manager of Fundsmith, nicknamed the UK's Warren Buffett, added Medpace Holdings and Doximity to his investments, reflecting his interest in high-growth healthcare companies. However, he did not strengthen his existing positions. He lightened much of his portfolio, reducing his holdings in companies such as Meta Platforms, Microsoft, Stryker, Automatic Data Processing, Visa, Philip Morris, Waters Corp, Alphabet, Marriott International, Idexx Laboratories, PepsiCo, Fortinet, Procter & Gamble, Mettler-Toledo, Church & Dwight, Otis Worldwide, Nike, Brown-Forman, The Home Depot, Zoetis and Mastercard. He also sold his shares in Apple, McCormick, Cognex and McDonald's.

Pat Dorsey

Pat Dorsey, manager of Dorsey Asset Management, pursues an investment strategy focused on quality companies, with a measured and targeted approach. In the last quarter, he made no purchases, but strengthened his positions in companies such as Wix.com, Alphabet, AutoZone, Paypal, Danaher, Sprout Social, Upwork and Semrush Holdings, convinced of their long-term potential. At the same time, he reduced his stakes in Meta Platforms, Smartsheet and HERC Holdings, while selling his shares in AppLovin, after its sharp rise over the past 12 months.

Daniel Loeb

Daniel Loeb, Third Point's manager, takes a dynamic, diversified approach to investing, seeking to capture opportunities while adjusting his portfolio according to market conditions. Last quarter, he expanded his positions by buying Thermo Fisher Scientific, Capital One Financial, Fortive, Workday, Discover Financial Services, Primo Brands, Seadrill and Membership Collective, while strengthening his investments in solid companies such as Meta Platforms, Brookfield Corporation, CRH, Flutter Entertainment, LPL Financial, Ferguson Enterprises, Telephone & Data Systems, Tesla, Carpenter Technology, EQT Corp and Clear Channel Outdoor. However, he reduced his holdings in several stocks, including PG&E Corp, Danaher, Amazon, Corpay, Live Nation, Microsoft, Cinemark Holdings, Apollo Global Management and Vistra Corp. Finally, he sold his shares in several companies, including Bath & Body Works, Apple, Roper Technologies, Amphenol, CVS Health, Ansys, United States Cellular, Hawaiian Electric Industries and Jaws Mustang Acquisition.

Chuck Akre

Chuck Akre, Managing Director of Akre Capital Management, pursues a focused, well-considered investment strategy, with an emphasis on high-quality, sustainable-growth companies. Last quarter, he strengthened his positions in Brookfield Corporation and CoStar Group, two companies he considers promising. However, it reduced its holdings in several other stocks, including Mastercard, KKR, Moody's, O'Reilly Automotive, American Tower, Roper Technologies, CarMax, DigitalBridge Group and Verisk Analytics. He has made no sales, preferring to maintain his investments in stocks he considers solid for the long term.

David Tepper

David Tepper, manager of Appaloosa Management, adopts an active, diversified investment strategy, making tactical adjustments according to market conditions. Last quarter, he added Corning to his portfolio while strengthening his positions in major technology and energy companies such asAlibaba Group, PDD Holdings, Vistra, JD.com, NRG Energy, AMD, Baidu, ASML, Micron Technology, Nvidia, Lam Research, Uber Technologies, Caesars Entertainment, KE Holdings and Expand Energy. He also made weightings in several stocks, including FedEx Corp, Oracle, Lyft, Amazon, Meta Platforms, Energy Transfer, TSMC, Wynn Resorts, Las Vegas Sands, Antero Resources, EQT and Intel. Finally, he sold his shares in Adobe and Southwestern Energy.

Howard Marks

Howard Marks, co-founder of Oaktree Capital Management, continues to favor a cautious, opportunistic approach to investing. Last quarter, he strengthened his portfolio with strategic purchases in Sunrise Communication, Barrick Gold, Chesapeake Energy Corporation, Coupang and Mesoblast. He also increased his positions in Netease, HDFC Bank, Liberty Global and Expand Energy. However, he reduced most of his other positions, while selling several stocks, including Unibanco Holding, Banco Bradesco, JOYY, Alibaba Group, Hims & Hers Health, YPF and XP, thus adjusting his portfolio to market developments.

Seth Klarman

Seth Klarman, manager of Baupost Group and considered the spiritual descendant of Warren Buffett, follows a value-oriented and cautious investment strategy. Last quarter, he expanded his portfolio with strategic purchases of Ferguson Enterprises, Sunrise Communication, Humana and Genuine Parts. It also strengthened its positions in several companies, including Willis Towers Watson, Wasco International, CRH, Restaurant Brands International, Eagle Materials and Herbalife. At the same time, he reduced his holdings in Liberty Global, Alphabet, Clarivate, Dollar General and Solventum, while selling his positions in Fidelity National Information Services, Fortrea Holdings and Jacobs Solutions.

Bill Ackman

Bill Ackman, the renowned manager of Pershing Square Capital Management, pursues a selective strategy by strengthening key positions while adjusting his portfolio in a considered manner. Last quarter, he increased his holdings in Brookfield Corporation, Nike and Seaport Entertainment, companies in which he sees strong growth potential. He also reduced his positions in Chipotle Mexican Grill and Hilton Worldwide Holdings, while choosing not to sell any of his other holdings, preferring to maintain a long-term approach to his investments.

Mohnish Pabrai

Mohnish Pabrai, manager of Pabrai Investments, adopts a highly concentrated investment approach, focusing on a limited number of strategic positions. In the last quarter, he increased his investments in Alpha Metallurgical Resources and Warrior Met Coal, two companies he considers promising, while reducing his position in Core Natural Resources. It also sold its shares in Danaos and Arch Resources.

François Rochon

François Rochon, Canadian manager of Giverny Capital, continues to favor investments in quality companies, consolidating his portfolio with solid stocks while adjusting his strategy according to opportunities. In the last quarter, he strengthened his positions in his top 20 holdings, with notable purchases of Brown & Brown, Ferguson Enterprises, Birkenstock Holding, Liberty Broadband, Microsoft, UnitedHealth Group, Intuitive Surgical and Jacobs Solutions. At the same time, it reduced its stake in companies such as Keysight Technologies, Alphabet, Arista Networks and Analog Devices, while selling its positions in Edwards Lifesciences and Liberty Media Formula One.

Focus on Ferguson Enterprises

Ferguson Enterprises (FERG) is the standout company in this selection. It was recently acquired by Seth Klarman, François Rochon and Polen Capital Management, and strengthened by Daniel Loeb, William Von Mueffling and Thomas Gayner. Ferguson Enterprises is a North American distributor providing solutions and products in the fields of infrastructure, plumbing and appliances, heating, ventilation and air conditioning (HVAC), firefighting, manufacturing and many other solutions. Analysts at Morgan Stanley and Bank of America moved to Buy on the stock in January, and those at RBC Capital Markets remain Buy. In early December, Ferguson reported disappointing results, particularly on the top line, in Q1 2025, due to persistent weakness in certain commodity categories, while the company reiterated its sales growth outlook for the full year. The next results for the second quarter of 2025 are due on March 11. These statements by leading long-term fund managers are reassuring about the company's prospects over the next few years. Even if they don't tell us anything about whether the stock has indeed hit a low point before possibly recovering, these positions are food for thought for this company with its steady growth and healthy balance sheet, which currently offers a reasonable valuation.