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 category||Number of new stocks Purchases||Total new purchases (%)|
|10 to 20%||30||15.54|
|0 to 10%||51||26.42|
|-10 to 0%||44||22.80|
|-20 to -10%||20||10.36|
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.
|Stocks||Number of shares||Holding value ($1,000)|
|Vanguard High Dividend Yield ETF (VYM)||2,08,325||16,803|
|Lockheed Martin Corp. (LMT)||3,806||1,267|
|Western Digital Corp. (WDC)||4,400||396|
|Boeing Company (The) (BA)||670||216|
|Worldpay, Inc. (WP)||2,630||212|
|American Tower Corp. (REIT) (AMT)||1,428||205|
The next table presents Arthur M. Cohen & Associates, LLC’s portfolio value for past 2 quarters starting from Q1 2017. In addition, it shows the top holdings that outperform S&P 500 for each quarter. The data suggest that, among the various new purchases, Sage Therapeutics, Inc. (SAGE) and Bluebird Bio, Inc. (BLUE) outperform S&P 500 by more than 100%.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q1 2017||223.72||Abbott Laboratories (ABT, 23.37), Apple, Inc. (AAPL, 5.18)|
|Q4 2016||188.95||Sage Therapeutics, Inc. (SAGE, 204.18), Illumina, Inc. (ILMN, 51.45), CBOE Holdings, Inc. (CBOE, 49.42)|