By: Manisha Sethi Sep. 24, 2018

On April 19, 2018, Versant Capital Management, Inc reported its SEC 13F filing for the first quarter of the calendar year, during which it bought 65 new stocks, bringing their portfolio value to an estimated $242.12 million. Vanguard Emerging Markets Government Bond ETF (VWOB) is the investor’s top holding with 3,90,030 shares amounting to $27.56 million. Versant Capital Management, founded in the year 2004, is based out of Phoenix, and provides wealth management and investing services. Its portfolio is diversified across sectors with the highest share of 63.19% in financials.

Raltin found that 58.29% of new stock purchases by Versant Capital Management beat the S&P 500. 29% of all stocks, in other words, about 493 new stock purchases (between Q1 2014 & Q1 2018) outperformed the S&P 500 by more than 20%. Only 449 of a total of 1700 stocks (about 25% of the total) underperformed the S&P 500 by more than 10%. A detailed background on Raltin’s methodology is given here. The table below classifies Versant Capital Management’s stock in various S&P performance categories.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
10 to 20%23513.82
0 to 10%26315.47
-10 to 0%26015.29
-20 to -10%18610.94
Total stocks1700


Versant Capital Management bought 65 new stocks this quarter from different sectors, with the two top buys being Jones Soda Co (JSDA) and SPDR S&P Regional Banking ETF (KRE). The table below lists the investor’s top 20 new buys of a total of 65 in Q1 2018.

StocksNo. of sharesHolding value ($1,000)
Jones Soda Co (JSDA)712,728253
SPDR S&P Regional Banking ETF (KRE)1,00060
SPDR Nuveen Barclays Short term Municipal Bond ETF (SHM)1,20357
iShares MSCI International Developed Value Factor ETF1,63242
Rydex British Pound Trust (FXB)29540
CurrencyShares Euro Trust (FXE)33039
SPDR Nuveen Bloomberg Barclays Municipal Bond ETF (TFI)80338
Schwab Fundamental International Small Company Index ETF (FNDC)1,07238
iShares MSCI USA Value Factor ETF (VLUE)40633
Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE)88227
Manulife Financial Corp (MFC)3847
SPDR S&P Global Natural Resources ETF (GNR)874
Dean Foods Inc. (New)4674
Lennar Corp Class A (LEN)623
China Fund Inc. (CHN)1803
TechnipFMC PLC (merger) (FTI)692
Vereit, Inc. (VER)2902
Callon Petroleum Co. (CPE)1552
Hawaiian Holdings, Inc. (HA)632
Finisar Corp. (FNSR)1762

The following table shows the investor’s portfolio value over the 5 quarters starting from Q1 2017 to Q1 2016, with the top 3 holdings in each period that outperformed the S&P 500 IRR.Several new selections by the investor, like Restoration Hardware Holdings, Inc (RH), Spectrum Pharmaceuticals, Inc. (SPPI), Alcoa Corp. (AA), and Scientific Games Corp. (SGMS), have been much more successful than the index.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017180.76Restoration Hardware Holdings, Inc. (RH, 94.71), bluebird bio, Inc. (BLUE, 76.51), HFF, Inc. (HF, 68.25)
Q4 2016175.19Spectrum Pharmaceuticals, Inc. (SPPI, 310.03), Alcoa Corp. (AA, 72.75), AdvanSix Inc. (ASIX, 70.91)
Q3 2016175.6Supervalu, Inc. (SVU, 321.44), National Beverage Corp. (FIZZ, 166.22), Kronos Worldwide, Inc. (KRO, 159.96)
Q2 2016169.26Scientific Games Corp. (SGMS, 168.58), Harsco Corp. (HSC, 127.04), Ingevity Corp. (NGVT, 53.2)
Q1 2016165.24Nanometrics, Inc. (NANO, 77.59), Univar, Inc. (UNVR, 63.76), Bel Fuse Inc. (BELFB, 60.3)