By: Manisha Sethi May. 03, 2018
Egerton Capital (UK) LLP reported its SEC 13F filings for the last quarter of 2017 on February 8, 2018, revealing a portfolio valued at $11.42 billion, with its top 10 holdings comprising 52.73% of the portfolio. Egerton Capital’s top holdings are Applied Materials, Inc. (AMAT), Charter Communications, Inc. (CHTR), Activision Blizzard, Inc. (ATVI), Praxair, Inc. (PX), and Constellation Brands, Inc. (STZ), with Applied Materials (AMAT) comprising 6.93% of its portfolio. Egerton Capital (UK) LLP was founded on February 18, 2013, and is based in London, United Kingdom, where it operates as an investment management firm that invests in liquid, large-cap, and publicly traded equities across sectors. Egerton Capital serves endowments, family offices, foundations, funds of funds, high net worth individuals, pension plans, and sovereign wealth funds. The firm also uses swaps, options, and derivatives to create its portfolio along with strategies like long/short, short selling, long only, and arbitrage. The firm employs fundamental analysis with a bottom-up stock picking approach and uses in-house research to create its portfolio.
Raltin found that 59% of new stock purchases by Egerton Capital (UK) LLP outperformed the S&P 500. Of all its stocks, 21% or about 18 new stock purchases (between Q1 2014 & Q4 2017) outperformed the S&P 500 by more than 20%. Only 25 stocks of its 84 total stocks underperformed the S&P 500 by more than 10%. A detailed background on Raltin’s methodology is given here, while the table below shows the individual stock picks compared to the S&P 500.
|S&P outperformance category||Number of new stock purchases||Total new purchases (% )|
|10 to 20%||16||19|
|0 to 10%||16||19|
|-10 to 0%||9||11|
|-20 to -10%||8||10|
The firm added 7 new stocks this quarter from various sectors like communications, healthcare, information technology, and industrials. Alphabet Inc. Class C (GOOG) and UnitedHealth Group Inc. (UNH) from among its new buys constitute 4.05% and 3.23% of its portfolio, respectively.The following table shows the investor’s new purchases in Q4 2017.
|Stocks||Number of shares||Holding value ($1,000)|
|Alphabet Inc. Class C (GOOG)||442,147||462,663|
|UnitedHealth Group Inc. (UNH)||1,673,344||368,905|
|Salesforce.com, Inc. (CRM)||2,881,221||294,547|
|Cintas Corp. (CTAS)||1,535,444||239,268|
|Electronic Arts Inc. (EA)||1,755,304||184,412|
|Worldpay, Inc. Class A||1,271,586||93,525|
|GoDaddy Inc. (GDDY)||953,728||47,953|
The next table presents the investor’s portfolio value for the past five quarters, that is, from Q1 2017 to Q1 2016. In addition, it shows the top 3 stocks that outperformed the S&P 500 in each quarter as well as several new picks by the fund, such as Adobe Systems, Inc. (ADBE), NVIDIA Corp. (NVDA), Liberty Interactive Ventures Corp Series A (LVNTA), and Applied Materials, Inc. (AMAT) that have also successfully beaten the index.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % IRR difference from S&P 500)|
|Q1 2017||9,246.73||Adobe Systems, Inc. (ADBE, 54.62), Applied Materials, Inc. (AMAT, 31.44), FleetCor Technologies, Inc. (FLT, 22.17)|
|Q4 2016||8,223.94||Bank of America Corp. (BAC, 14.24)|
|Q3 2016||8,821.86||Liberty Interactive Ventures Corp Series A (LVNTA, 28.29)|
|Q2 2016||8,907.91||Albemarle Corp. (ALB, 17.64)|
|Q1 2016||10,496.79||NVIDIA Corp. (NVDA, 191.02), Liberty Broadband Corporation, Class C (LBRDK, 34.39), Stryker Corp. (SYK, 8.0)|