Yale University (Trades, Portfolio), renowned for its academic excellence, also boasts a robust investment portfolio managed by the Yale Investment Office. The office's primary goal is to generate high inflation-adjusted returns to support the university's current and future needs. The portfolio is structured using a blend of academic theory and informed market judgment, leveraging mean-variance analysis developed by Nobel laureates James Tobin and Harry Markowitz. This article delves into Yale University (Trades, Portfolio)'s recent 13F filing for Q2 2023, providing an overview of the portfolio's composition and performance.
Portfolio Overview
As of June 30, 2023, Yale University (Trades, Portfolio)'s portfolio contained four stocks with a total value of $129 million. The top holdings were Albertsons Companies Inc (ACI, Financial) with a 72.05% stake, Seagen Inc (SGEN, Financial) at 16.65%, and VWO at 10.80%.
Top Trades of the Quarter
During Q2 2023, Yale University (Trades, Portfolio) made significant moves in its portfolio. The top three trades of the quarter involved Albertsons Companies Inc (ACI, Financial), Seagen Inc (SGEN, Financial), and PhenomeX Inc (CELL, Financial).
Albertsons Companies Inc (ACI, Financial)
Yale University (Trades, Portfolio) purchased 2,745,121 shares of Albertsons Companies Inc (ACI), increasing its total holding to 4,254,973 shares. This trade had a 46.48% impact on the equity portfolio. The stock traded for an average price of $20.81 during the quarter. As of August 15, 2023, ACI's stock price was $21.875, with a market cap of $12.59 billion. The stock has returned 5.55% over the past year. GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10. ACI's valuation ratios include a P/E ratio of 10.67, a P/B ratio of 7.73, a PEG ratio of 0.42, an EV-to-Ebitda ratio of 5.70, and a P/S ratio of 0.16.
Seagen Inc (SGEN, Financial)
The university established a new position in Seagen Inc (SGEN), purchasing 111,468 shares, which constituted a 16.65% weight in the equity portfolio. The stock traded for an average price of $198.73 during the quarter. As of August 15, 2023, SGEN's stock price was $194.46, with a market cap of $36.50 billion. The stock has returned 15.37% over the past year. GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 3 out of 10. SGEN's valuation ratios include a P/B ratio of 13.92, an EV-to-Ebitda ratio of -52.92, and a P/S ratio of 16.73.
PhenomeX Inc (CELL, Financial)
Yale University (Trades, Portfolio) sold out its 65,654-share investment in PhenomeX Inc (CELL). The shares traded for an average price of $0.82 during the quarter. As of August 15, 2023, CELL's stock price was $0.445, with a market cap of $43.97 million. The stock has returned -91.38% over the past year. GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 1 out of 10. CELL's valuation ratios include a P/B ratio of 0.28, an EV-to-Ebitda ratio of -1.25, and a P/S ratio of 0.43.
In conclusion, Yale University (Trades, Portfolio)'s Q2 2023 portfolio reflects a strategic blend of academic theory and market judgment. The portfolio's performance and composition offer valuable insights for investors seeking to understand the university's investment philosophy and strategy.
