RS Investment Management (Trades, Portfolio) trimmed its positions in two holdings — eHealth (EHTH, Financial) and FTD Companies (FTD, Financial) — on April 9, according to GuruFocus Real Time Picks.
The firm was founded in 1986 and is headquartered in San Francisco. As of March 31, the firm had $20 billion in assets under management.
The RS Partners Fund invests in small cap value companies; over the past 10 years, the fund had annualized returns of 7.36%, slightly underperforming the Russell 2000 Value Index with annualized returns of 7.53% over the same time period.
As of Dec. 31, the majority of the assets were held in financial services stocks at 34.36%, followed by consumer discretionary at 13%, and materials and processing at 11.03%.
The fund sold 1,150,748 shares of eHealth on April 9, leaving a total of 725,740 shares in the portfolio. The stock has been in steady decline since March 2014. The following graph shows the fund’s holding history.
eHealth is the parent company of eHealthInsurance, an exchange where individuals and small businesses can compare health coverage plans side-by-side. Over the past year, the stock price has declined 77%, and currently trades at $10.85 with a P/E ratio of 20.12 and P/S ratio of 1.09.
Net income has been in steady decline since 2010, moving from $17.5 million to $-16.2 million in 2014.
Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio) are the other two gurus who own stakes in eHealth, at 0.46% and 0.32% of shares outstanding, respectively.
Also on April 9, the fund sold 374,111 shares of its position in FTD Companies for an average price of $29.07 per share, leaving a total of 1,650,296 shares. FTD Companies is a premier floral and gifting company with retail locations in the U.S., U.K., Canada, and Ireland.
The stock price dropped 5% over the last year and is now priced at $29.42 with a P/E ratio of 24.8 and P/S ratio of 0.9.
Net income in 2014 was $22.8 million, up from $12.5 million the year before.
Looking at the balance sheet, FTD’s current ratio is less than 1, which indicates the company cannot cover its short-term obligations.
Joel Greenblatt (Trades, Portfolio), John Keeley (Trades, Portfolio), and Chuck Royce (Trades, Portfolio) also hold positions in the floral company.
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