T. Rowe Price Equity Income Fund Buys SL Green Realty, Alaska Air

Fund's largest buys of the 2nd quarter

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Jul 17, 2018
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The T Rowe Price Equity Income Fund (TradesPortfolio) released its second-quarter portfolio this week, listing several new positions.Â

The fund established a position in SL Green Realty Corp. (SLG, Financial), buying 1,230,000 shares. The trade had an impact of 0.62% on the portfolio.

The real estate investment trust has a market cap of $9.02 billion and an enterprise value of $14.46 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 2.62% and return on assets of 1.30% are underperforming 84% of companies in the Global REIT - Office industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.05 is below the industry median of 0.06.

Another notable guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.51% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.24% and Chris Davis (Trades, Portfolio) with 0.13%.

The fund bought 1,630,000 shares of Alaska Air Group Inc. (ALK, Financial). The trade had an impact of 0.49% on the portfolio.

With a market cap of $7.57 billion, the company offers air, freight and mail services. It has an enterprise value of $8.49 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 27.73% and return on assets of 8.80% are outperforming 76% of companies in the Global Airlines industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 0.62.

The largest guru shareholder of the company is PRIMECAP Management (Trades, Portfolio) with 4.82% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.29% and Diamond Hill Capital (Trades, Portfolio) with 0.22%

T. Rowe Price established a position in Evergy Inc. (EVRG, Financial), buying 1,717,548 shares. The transaction had an impact of 0.48% on the portfolio.

The utility company, which provides electricity generation, transmission and distribution services, has a market cap of $15.19 billion and an enterprise value of $19.2 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 8.36% and return on assets of 2.80% are underperforming 54% of companies in the Global Utilities - Regulated Electric industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.34 is below the industry median of 0.36.

With 0.63% of outstanding shares, the fund is the company's largest guru shareholder.

The fund added 40.45% to its TransCanada Corp. (TRP, Financial) position, expanding the portfolio by 0.31%.

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The energy infrastructure company has a market cap of $38.84 billion and an enterprise value of $76.87 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. While the return on equity of 12.39% is outperforming the sector, the return on assets of 3.72% is underperforming 53% of companies in the Global Oil and Gas Midstream industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.04.

Another notable guru shareholder of the company is Jim Simons (Trades, Portfolio) with 0.11% of outstanding shares, followed by Pioneer Investments with 0.05% and Ray Dalio (Trades, Portfolio) with 0.01%.

The Franklin Resources Inc. (BEN, Financial) stake was increased by 33.33%, impacting the portfolio by 0.21%.

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The investment management company has a market cap of $17.34 billion and an enterprise value of $10.04 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the return on equity of 5.70% is underperforming the sector, the return on assets of 3.95% is outperforming 52% of companies in the Global Asset Management industry. Its financial strength is rated 7 out of 10 with a cash-debt ratio of 8.09.

Richard Pzena (Trades, Portfolio) is the largest guru shareholder of the company with 1.97% of outstanding shares, followed by David Abrams (Trades, Portfolio) with 1.47% and Diamond Hill Capital with 0.74%.

The Wells Fargo & Co. (WFC, Financial) holding was boosted 6.23%. The trade had an impact of 0.19% on the portfolio.

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The bank has a market cap of $276.35 billion and an enterprise value of $344.73 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 9.87% and return on assets of 1.13% are outperforming 63% of companies in the Global Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.83 is below the industry median of 2.12.

With 9.37% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 1.59%, Barrow, Hanley, Mewhinney & Strauss with 0.64% and Davis with 0.55%.

Disclosure: I do not own any stocks mentioned in this article.