By: Manisha Sethi Aug. 17, 2018

Arthur M. Cohen & Associates, LLC disclosed its SEC 13F filings for Q1 2018 on April 20 and reported a portfolio value of $265.12 million, with its top 10 holdings constituting 55.83% of the company’s portfolio. The firm’s top holdings include Danaher Corp. (DHR), Berkshire Hathaway, Inc. (BRK.B), Vanguard High Dividend Yield ETF (VYM), Berkshire Hathaway, Inc. (BRK.A), and SPDR S&P 500 ETF Trust (SPY). Of these, its highest holding is 2,74,154 shares of Danaher Corp. (DHR), amounting to $26.24 million. The firm is a registered investment advisor based in Northbrook, Illinois, and provides its services to high networth individuals, individuals, and charitable organizations.

According to a Raltin study, 57% of Arthur M. Cohen & Associates LLC’s new purchases outperform S&P 500, whereas 20% or about 39 new stock purchases (between Q1 2014 and Q1 2018) underperform by more than 10%. Only 19 out of 193 new purchases underperform S&P 500 by more than 20%. A detailed description of Raltin’s methodology can be found here. The following table mentions the number of new purchases relative to the various categories of S&P 500 performance.

S&P outperformance categoryNumber of new stocks PurchasesTotal new purchases (%)
>20%2915.03
10 to 20%3015.54
0 to 10%5126.42
-10 to 0%4422.80
-20 to -10%2010.36
<-20%199.84
Total stocks193

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In this quarter, the firm bought 6 new stocks across sectors; for instance, Vanguard High Dividend Yield ETF (VYM) from the finance sector accounts for 6.34% of the portfolio. The following table lists the investor’s new purchases for Q1 2018 as well as the number of shares and holding value.

StocksNumber of sharesHolding value ($1,000)
Vanguard High Dividend Yield ETF (VYM)2,08,32516,803
Lockheed Martin Corp. (LMT)3,8061,267
Western Digital Corp. (WDC)4,400396
Boeing Company (The) (BA)670216
Worldpay, Inc. (WP)2,630212
American Tower Corp. (REIT) (AMT)1,428205

The next table presents Arthur M. Cohen & Associates, LLC’s portfolio value for past 2 quarters starting from Q1 2017. In addition, it shows the top holdings that outperform S&P 500 for each quarter. The data suggest that, among the various new purchases, Sage Therapeutics, Inc. (SAGE) and Bluebird Bio, Inc. (BLUE) outperform S&P 500 by more than 100%.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017223.72Abbott Laboratories (ABT, 23.37), Apple, Inc. (AAPL, 5.18)
Q4 2016188.95Sage Therapeutics, Inc. (SAGE, 204.18), Illumina, Inc. (ILMN, 51.45), CBOE Holdings, Inc. (CBOE, 49.42)