Francis Chou (Trades, Portfolio), manager of Chou Associates Management, disclosed last 7 days that his firm’s leading four sells through the fourth quarter of 2020 bundled the closure of its position in Spirit Airlines Inc. (NYSE:Save) and Allegiant Vacation Co. (NASDAQ:ALGT) and a reduction in its keeping of DaVita Inc. (NYSE:DVA) and Goldman Sachs Group Inc. (NYSE:GS).

Chou Associates seeks extended-term cash appreciation via a comprehensive examination of a company’s fundamental data coupled with a price-oriented investing solution. The guru started in 1980, alongside with six other phone repairmen, an financial investment club that follows teachings from Benjamin Graham’s investment publications. All over the 1990s, his business outperformed the Typical & Poor’s 500 index benchmark by at minimum 7{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} by “obtaining bargains, getting the returns gradually, and wondering independently.”


As of the December 2020 quarter, the firm’s $136 million fairness portfolio consists of 18 stocks with 43.38{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} fat in the fiscal expert services sector, 25.45{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} excess weight in components space and 24.45{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} weight in wellness care.



Chou Associates offered 50,000 shares of Spirit (NYSE:Help you save), curbing the equity portfolio .77{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312}. Shares averaged $20.78 all through the fourth quarter.


GuruFocus ranks the Miramar, Florida-primarily based airline operator’s economic strength 3 out of 10 on a number of warning symptoms, which involve a low Piotroski F-rating of 2, a weak Altman Z-score of .76 and a personal debt-to-fairness ratio that underperforms more than 80{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of worldwide rivals.


Gurus with huge holdings in Spirit involve Jim Simons (Trades, Portfolio)’ Renaissance Systems and Steven Cohen (Trades, Portfolio)’s Stage72 Asset Administration.



The agency offered 4,317 shares of Allegiant (NASDAQ:ALGT), cutting down the equity portfolio by .49{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312}. Shares averaged $153.99 during the fourth quarter.


According to GuruFocus, the Las Vegas-primarily based vacation services company has a minimal fascination coverage ratio of .45 as of December 2020 based mostly on preliminary financial info.



The firm marketed 12,000 shares of DaVita, slicing 52.76{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of the situation and .98{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of the equity portfolio. Shares averaged $102.16 for the duration of the fourth quarter.


GuruFocus ranks the kidney dialysis provider’s profitability 9 out of 10 on quite a few positive investing signals, which incorporate a 4.5-star organization predictability rank and a large Piotroski F-score of 7.


Goldman Sachs

The firm offered 2,000 shares of Goldman Sachs, cutting the place 10{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} and the equity portfolio .38{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312}. Shares averaged $222.99 through the fourth quarter.


GuruFocus ranks the New York-based expenditure bank’s monetary power 3 out of 10 on the back of debt ratios underperforming more than 78{e0233a5a8ca3dab8ed448c5451aba2c38c77d167988a5d203483ecea09d61312} of international competitors, suggesting high economic leverage.


Disclosure: No positions.

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James Li

I am an editorial researcher at GuruFocus. I have a Master’s in Finance from SMU, and I love producing stories on monetary traits and investor portfolios. Adhere to me on Twitter at @JamesLiGuru!

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