By: Manisha Sethi Jun. 26, 2018

Atlanta Capital Management Company LLC disclosed its SEC 13F filings for Q1:2018 on May 14 and reported a portfolio value of $19,339.81 million, with the top 10 holdings amounting to 25.93%. Of the top holdings, Markel Corp. (MKL) and ANSYS, Inc. (ANSS) account for 3.42% and 3.06% of the portfolio. The firm invests in numerous sectors. Atlanta Capital Management Company LLC was founded in 1969 and is based in Atlanta, Georgia. It is an SEC-registered investment advisory firm that specializes in managing high-quality stock and bond portfolios on behalf of institutional and individual investors. It manages separate client-focused equity, fixed income, and balanced portfolios. In addition, the firm manages equity mutual funds and invests in the public equity markets and fixed-income markets of the United States. The firm benchmarks the performance of its equity portfolios against various Russell indices and that of its fixed income portfolios against various Merrill Lynch and Barclays indices. Further, it conducts in-house research to make its investments.

A recent Raltin analysis examines new buys by the investor from Q1:2014 to Q1:2018 and calculates their internal rate of return (IRR). The findings show that 44 out of 77 new purchases outperform S&P 500. Of these, 24 outperform the index by more than 20%, whereas only 8 new buys underperform the index by more than 20%. The details of Raltin’s methodology can be found here. The following table describes the performance of the new purchases with respect to S&P 500.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
>20%1418.18
10 to 20%1012.99
0 to 10%2025.97
-10 to 0%1924.68
-20 to -10%67.79
<-20%810.39
Total stocks77

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Atlanta Capital Management Company bought 4 new stocks in the recent quarter from the IT and finance sectors. The next table lists the new purchases as well as the number of shares and holding value.

StocksNumber of sharesHolding value ($1,000)
Booking Holdings Inc. (BKNG)13,66728,432
TE Connectivity Ltd. (TEL)2,48,20624,796
Kinsale Capital Group, Inc. (KNSL)4,69,26824,088
iShares Russell 1000 ETF (IWB)14,0062,057

The following table presents Atlanta Capital Management Company’s portfolio value from Q1 2017 to Q1 2016 and the top holdings that outperform the S&P 500 IRR in each quarter. Several new buys outperform the index. More specifically, Xylem Inc. (XYL), ICU Medical, Inc. (ICUI), Zoetis Inc. (ZTS), and Trimble Navigation Ltd. (TRMB) drastically outperform S&P 500.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 201716,268.23Xylem, Inc. (XYL, 41.68), Intercontinental Exchange, Inc. (ICE, 9.53)
Q4 201615,686iShares Russell 1000 Growth ETF (IWF, 9.03),
Q3 201615,076.35ICU Medical, Inc. (ICUI, 31.02), Fortive Corporation (FTV, 23.01), Trimble Navigation Ltd. (TRMB, 21.35)
Q2 201614,977.96Zoetis Inc. (ZTS, 16.01),
Q1 201614,043.98Schwab Charles Corp. (SCHW, 30.94), Microsoft Corp. (MSFT, 4.54)