By: Manisha Sethi Oct. 02, 2018

On May 11, AO Asset Management LP reported its SEC 13F filings for the first quarter of 2018. Its portfolio is valued at $581.56 million, and its top 2 holdings are Workday, Inc. (WDAY), and Mellanox Technologies, Ltd. (MLNX), with a 7.30% and 5.62% share of the portfolio. The firm’s highest investment is in technology sector, which has a 82.71% share of the portfolio. 

AO Asset Management, LLC, was founded on October 3, 2013, and is based in New York City. It is an investment management firm that specializes in financial planning, quantitative analysis, and market timing services. The firm primarily provides services to pooled investment vehicles. It also caters to separately managed accounts and client-focused equity portfolios. It invests in public equity markets across the globe with a focus on the United States. The firm uses long/short equity to make investments. It employs fundamental analysis to create its portfolios along with in-house research. It typically invests in companies belonging to the technology, media, and telecommunications sectors.

According to a study conducted by Raltin, 51.09% of AO Asset Management’s new purchases outperform the S&P 500 while the rest underperform the index. Among the outperformers, 35.87% or about 33 new stock purchases (between Q1 2014 and Q1 2018) outperform the S&P 500 by more than 20%, whereas 20 of 92 new purchases underperform the S&P 500 by more than 20%. A detailed description of Raltin’s methodology can be found here. The following table shows the various categories of performance against the S&P 500 for new purchases.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
-10 to 0%1213.04
-20 to -10%1314.13
Total stocks92


Of the 16 new stocks purchased by AO Asset Management in this quarter, Crown Castle International Corp. (CCI) from the communications sector and Intel Corp. (INTC) from the IT sector account for 3.81% and 3.27% of the portfolio, respectively. The table below elaborates on the company’s new purchases as well as the number of shares and holding values.

StocksNumber of sharesHolding value ($1,000)
Crown Castle International Corp. (CCI)202,20022,163
Intel Corp. (INTC)365,00019,009
Splunk Inc. (SPLK)173,95117,115
CommScope Holding Company, Inc. (COMM)410,10016,392
Netflix, Inc. (NFLX)53,80015,890
Viavi Solutions Inc. (VIAV)1,632,40015,867
New Relic, Inc. (NEWR)212,40015,743
FireEye, Inc. (FEYE)924,10015,645
Red Hat, Inc. (RHT)88,60013,247
American Tower Corp. (REIT) (AMT)90,60013,168
Fortinet, Inc. (FTNT)238,90012,800
ForeScout Technologies, Inc. (FSCT)341,60011,082
Pegasystems, Inc. (PEGA)173,90010,547
Discovery Communications, Inc. (DISCA)417,3758,944
MongoDB Inc (MDB)92,7184,024
Zscaler, Inc. (ZS)73,2002,055

The following table shows the investor’s portfolio value for 5 quarters from Q1 2017 to Q1 2016 and the top holdings in each quarter that outperformed the S&P 500 IRR. Mulesoft, Inc. (MULE), Tableau Software, Inc. (DATA), Shopify Inc. (SHOP), Micron Technology, Inc. (MU), and Applied Materials, Inc. (AMAT) outperformed the index by more than 50%.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017401.43Mulesoft, Inc. (MULE; 69.4), Tableau Software, Inc. (DATA; 51.67), Box, Inc. (BOX; 14.42)
Q4 2016299.81Shopify Inc. (SHOP; 116.71), Micron Technology, Inc. (MU; 68.47), Activision Blizzard, Inc. (ATVI; 56.18)
Q3 2016367.874Alibaba Group Holding Limited (BABA; 47.28), Bitauto Holdings Ltd. (BITA; 37.63), Apple, Inc. (AAPL; 20.25)
Q2 2016381.719Applied Materials, Inc. (AMAT; 56.91), Cirrus Logic, Inc. (CRUS; 46.26), Charter Communications; Inc. (CHTR, 31.9)
Q1 2016378.365Universal Display Corp. (OLED; 44.45), The Priceline Group Inc. (PCLN; 23.39),