By: Manisha Sethi Jul. 06,2018

Coronation Fund Managers Ltd. reported its SEC 13F filings for the first quarter of 2018 on April 25. Its portfolio is valued at $2,515.764 million, with the top 10 holdings making up 53.56% of the portfolio, including JD.com, Inc. (JD), 58.com Inc. (WUBA), Tata Motors Ltd. (TTM), Ctrip.com International, Ltd. (CTRP), and Baidu, Inc. (BIDU). Coronation Fund Managers Ltd. was founded in 1993 and is based in Cape Town, South Africa. The company is a publicly owned investment management firm and provides services for pension and provident funds, medical schemes, unit trusts, banks, insurers and other fund managers, international retirement funds, endowments, and family offices. It launches and manages equity, fixed income, and balanced mutual funds. The firm invests in the public equity and fixed income markets across the globe and uses fundamental analysis with the bottom-up stock picking approach.

According to a study conducted by Raltin, 60% of Coronation Fund Managers Ltd.’s new purchases outperform the S&P 500. Of these, 38.57% or about 27 new stock purchases (between Q1 2014 and Q1 2018) outperform the S&P 500 by more than 10%. Only 20 of 70 new purchases underperform the S&P 500 by more than 10%. A detailed description of Raltin’s methodology can be found here. The following table shows the various categories of new purchases according to the relative performance against the S&P 500.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
>20%1927.14
10–20%811.43
0–10%1521.43
-10 to 0%811.43
-20 to -10%57.14
<-20%1521.43
Total stocks70

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In the most recent quarter, Coronation Fund Managers Ltd. bought 7 new stocks from diverse sectors. The table given below shows all the new buys of this investor in Q1 of 2018 along with the number of shares and holding values.

StocksNumber of sharesHolding value ($1,000)
Booking Holdings Inc. (BKNG)16,07833,449
Philip Morris International, Inc. (PM)1,95,38819,422
LIBERTY LATIN AMERICA LTD / COM CL C (LILAK)7,95,41115,185
Altice USA, Inc. (ATUS)4,09,5397,568
Mondelez International, Inc. (MDLZ)1,04,7534,371
UnitedHealth Group Inc. (UNH)19,9204,263
Shire Plc. (SHPG)5,740857

The following table shows the portfolio value of Coronation Fund Managers Ltd. for the 5 quarters starting from Q1 2017 to Q1 2016 and the top holdings in each quarter that outperformed the S&P 500 IRR. Several new picks by the fund like Urban Outfitters, Inc. (URBN), Yum China Holdings, Inc. (YUMC), Dell Technologies, Inc. (DVMT), and JD.com, Inc. (JD) have outperformed the S&P 500 by over 30%.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 20172,883.081Urban Outfitters, Inc. (URBN; 44.08), HDFC Bank Ltd. (HDB; 19.75),
Q4 20162,730.432Yum China Holdings, Inc. (YUMC; 33.95), Twitter, Inc. (TWTR; 28.01), Itau Unibanco Holding S.A. (ITUB; 7.1)
Q3 20162,724.356Dell Technologies Inc. (DVMT; 45.54), Sensata Technologies Holdings NV (ST; 7.83), S&P Global Inc. (SPGI; 7.38)
Q2 20162,293.044JD.com, Inc. (JD; 69.31), Fortress Investment Group LLC (FIG; 65.34), American Airlines Group Inc. (AAL; 62.32)