By: Manisha Sethi Jun. 28, 2018

Potrero Capital Research LLC reported its SEC 13F filings for Q1:2018 on May 15 and reported a portfolio value of $133.49 million, with its top 10 holdings accounting for 47.06% of the portfolio. The investor’s largest shareholding is 6,84,016 shares of Box, Inc. (BOX). Other top holdings by the investor include, Inc. (AMZN), Liberty Media Corporation (BATRK), Facebook, Inc. (FB), and Speedway Motorsports, Inc. (TRK). Potrero Capital Research LLC was established in 2012 by Jack Ripsteen and is based out of San Francisco. The company offers financial planning, portfolio management, pension consulting, publication of periodicals, and market timing services.

Raltin analyzed Potrero Capital Research LLC’s new purchases from Q1 2014 to Q1 2018 and calculated their annual internal rate of return. The results reveal that 55% or 33 out of 60 new purchases outperform the S&P 500, while 10 stocks underperform by more than 20%. Details of Raltin’s methodology are available here. The following table lists the number of new purchases that outperform the S&P 500.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (% )
10 to 20%711.67
0 to 10%46.67
-10 to 0%1220
-20 to -10%58.33
Total stocks60

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In the recent quarter, the firm bought 18 new stocks from various sectors, of which Avaya Holdings Corp. (AVYA) and Shutterfly Inc. (SFLY) constitute 3.18% and 2.80% of the portfolio. The following table shows the investor’s new purchases for Q1 2018.

StocksNumber of sharesHolding value ($1,000)
Avaya Holdings Corp. (AVYA)189,3004,240
Shutterfly, Inc. (SFLY)46,0753,744
Bandwidth Inc. (BAND)92,9233,035
Zayo Group Holdings, Inc. (ZAYO)75,0002,562
Model N, Inc. (MODN)140,2342,531
Pandora Media, Inc. (P)497,7562,504
TrueCar, Inc. (TRUE)261,7022,476
Purple Innovation Inc. Warrants (PRPLW)1,808,1651,609
Alphabet Inc. Class C (GOOG)1,5501,599
Ellis Perry International, Inc. (PERY)57,6601,488
SPS Commerce, Inc. (SPSC)22,5251,443
Purple Innovation, Inc. (PRPL)129,5601,065
Double Eagle Acquisition Corp. Units (EAGLE)100,0001,015
Nebula Acquisition Corp. (NEBUU)100,0001,012
Alphabet Inc. (GOOGL)950985
BlackLine, Inc. (BL)20,000784
Imax Corp. (IMAX)23,723455
MTech Acquisition Corp. (MTECU)32,500331

The next table presents the investor’s portfolio value for the past five quarters, that is, from starting from Q1 2017 to Q1 2016. In addition, it shows the top stocks outperforming the S&P 500 in each quarter. Among them, Etsy, Inc. (ETSY); HubSpot, Inc. (HUBS); Bebe Stores, Inc. (BEBE); and Cutera, Inc. (CUTR) outperform S&P 500 by a significant percentage.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % IRR difference from S&P 500)
Q1 2017112.52Etsy, Inc. (ETSY, 153.01), Alteryx Inc. (AYX, 107.23), lululemon Athletica Inc. (LULU, 60.41)
Q4 2016106.41HubSpot, Inc. (HUBS, 68.97),, Inc. (STMP, 44.76),, Inc. (AMZN, 36.7)
Q3 2016107.2Bebe Stores, Inc. (BEBE, 622.12), RingCentral, Inc. (RNG, 60.54)
Q2 2016109.77Cutera, Inc. (CUTR, 115.62), EMCORE Corp. (EMKR, 63.86), New Relic, Inc. (NEWR, 30.96)
Q1 2016105.04Green Dot Corp. (GDOT, 30.53), Box, Inc. (BOX, 18.33), Miller Industries, Inc. (TN) (MLR, 15.23)