By: Manisha Sethi Jul. 18, 2018
Fenimore Asset Management, Inc. disclosed its SEC 13F filings for Q1 2018 on April 10 and reported a portfolio value of $2.59 billion. Its top holdings include CDW Corporation (CDW), Ross Stores, Inc. (ROST), IDEX Corp. (IEX), Markel Corp. (MKL), and Microchip Technology Inc. (MCHP). Fenimore Asset Management, Inc. was founded in 1974 by Thomas O. Putnam and is based in Cobleskill, New York. The firm invests across all sectors and primarily provides its services to individuals including high net worth individuals. It also caters to investment companies offering retirement plans, pension and profit sharing plans, retirement plans, Taft-Hartley accounts, and endowments; charitable organizations; corporations; trusts; families; not-for-profits; and foundations. The firm manages separate client-focused equity portfolios. In addition, it launches and manages equity mutual funds for its clients. The firm invests in US public equity markets and companies’ value stocks. It conducts fundamental analyses with a bottom-up stock-picking approach to create its portfolios and in-house research to make its investments. Further, it benchmarks its performance against the Russell 2000 Index.
According to a Raltin study, 25% of FJ Capital Management’s new purchases outperform S&P 500 by more than 20%, whereas only 14.29% or 8 new stocks underperform by more than 20%. Overall, 51.79% of the new purchases (between Q1 2014 and Q1 2018) outperform the index. A detailed description of Raltin’s methodology can be found here. The following table mentions the number of new purchases relative to S&P 500 performance.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|10 to 20%||10||17.86|
|0 to 10%||5||8.93|
|-10 to 0%||7||12.5|
|-20 to -10%||12||21.43|
In this quarter, the firm bought 3 new stocks across sectors. In particular, Henry Schein, Inc. (HSIC) from the healthcare sector constitutes 1.43% of the portfolio. The following table lists new purchases by the firm as well as their holding value and the number of shares purchased.
|Stocks||Number of shares||Holding value ($1,000)|
|Henry Schein, Inc. (HSIC)||5,50,587||37,005|
|Matador Resources Co. (MTDR)||2,26,165||6,765|
|Winmark Corp. (WINA)||7,257||949|
The following table shows Fenimore Asset Management, Inc.’s portfolio value from Q1 2016 to Q1 2017, along with the top holdings that outperform S&P 500 in each quarter. Notably, CBIZ, Inc. (CBZ), Marriott International, Inc. (MAR), Penske Automotive Group, Inc. (PAG), and Stock Yards Bancorp, Inc. (SYBT) outperform the index by more than 20%.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q1 2017||2,334.94||CBIZ, Inc. (CBZ, 23.14), Dollar General Corp. (DG, 22.61),|
|Q4 2016||2,231.79||Versum Materials, Inc. (VSM, 15.51)|
|Q3 2016||2,084.81||Marriott International, Inc. (MAR, 47.79), Robert Half International, Inc. (RHI, 16.87)|
|Q2 2016||2,023.91||Penske Automotive Group, Inc. (PAG, 24.15), Choice Hotels International, Inc. (CHH, 19.49)|
|Q1 2016||1,976.73||Stock Yards Bancorp, Inc. (SYBT, 43.55), Multi-Color Corp. (LABL, 18.38), Landstar System, Inc. (LSTR, 17.86)|