By: Manisha Sethi Jul. 26, 2018
In its latest SEC 13F filings for Q1 2018 dated April 13, 2018, Boston Trust & Investment Management (BTIM) Company reported a portfolio value of $6.591 billion. Notably, its top 10 holdings account for 18.22%, indicating a well-diversified portfolio. BTIM Corp.’s largest holding is 10,18,192 of Apple, Inc. In addition to Apple, Inc. (AAPL), BTIM Corp.’s top holdings include Microsoft Corp. (MSFT), Alphabet, Inc. Class C (GOOG), and JPMorgan Chase & Co. (JPM). BTIM Company is an independent, employee-owned firm in Boston, Massachusetts. The firm was originally the investment division of a New England regional bank and has been independent since 1994 and employee-owned since 2004. BITM Company offers investment management and fiduciary services to individual and institutional clients. Its investment portfolios are broadly diversified with exposure across market capitalizations, sectors, and geographies and can be customized to suit each client’s circumstances. For all equity strategies, their in-house team of investment professionals seeks to identify and invest in stocks of higher-quality companies at reasonable prices. Further, their low portfolio turnover supports tax efficiency in taxable accounts.
Raltin analyzed the Company’s new purchases since Q1 2014 and calculated their annual internal rate of return (IRR). The difference between the stocks IRR and SPDR S&P 500 ETF Trust (SPY) IRR show that 81 or 52.26% of new stock purchases outperform S&P 500 (Details of the Raltin methodology can be found here.). A total of 60 new buys outperform the index by more than 10%, whereas only 17 out of 155 new purchases (between Q1 2014 and Q1 2018)underperform by more than 20%. The table below presents new stock purchases by S&P performance category.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|10 to 20%||33||21.29|
|0 to 10%||21||13.55|
|-10 to 0%||33||21.29|
|-20 to -10%||24||15.48|
In Q1 2018, the firm purchased 13 new stocks across sectors including finance, energy, IT, real estate, and transport. The next table lists new purchases by the firm as well as their holding value and the number of shares purchased.
|Stocks||Number of shares||Holding value ($1,000)|
|Booking Holdings Inc. (BKNG)||11,233||23,369|
|Watts Water Technologies, Inc. (WTS)||186,770||14,512|
|Manhattan Associates, Inc. (MANH)||321,035||13,445|
|Forward Air Corp. (FWRD)||200,097||10,577|
|Camden Property Trust (CPT)||59,426||5,002|
|Bryn Mawr Bank Corp. (BMTC)||99,478||4,372|
|Raytheon Co. (RTN)||11,032||2,381|
|Schwab U.S. TIPS ETF (SCHP)||14,160||777|
|Vanguard Total Stock Market Index Fund (VTI)||3,480||472|
|NTT DOCOMO, Inc. (DCM)||15,100||386|
|Morgan Stanley (MS)||5,283||285|
|BP plc (BP)||5,141||208|
|iShares Russell 1000 Growth ETF (IWF)||1,475||201|
The following table presents BITM Company’ portfolio value from Q1 2017 to Q1 2016. In addition, it shows the top holdings that outperform S&P 500 in each quarter. The data suggest that, among the various new purchases, WEX Inc. (WEX), Hyatt Hotels Corp. (H), ILG, Inc. (ILG), Dell Technologies Inc. (DVMT), and Fortive Corporation (FTV) outperform S&P 500 by more than 20%.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q1 2017||6,417.06||WEX Inc. (WEX, 39.84), Hyatt Hotels Corp. (H, 29.75), Agilent Technologies, Inc. (A, 14.96)|
|Q4 2016||6,267.37||ILG, Inc (ILG, 37.49), Versum Materials, Inc. (VSM, 15.51), Adient plc (ADNT, 14.97)|
|Q3 2016||6,065.7||Dell Technologies Inc. (DVMT, 45.54), Fortive Corporation (FTV, 23.01), Polaris Industries Inc. (PII, 19.03)|
|Q2 2016||5,854.9||1st Source Corp. (SRCE, 32.58), Charter Communications, Inc. (CHTR, 31.9), Globus Medical, Inc. (GMED, 23.68)|
|Q1 2016||5,743.48||Landstar System, Inc. (LSTR, 17.86), UnitedHealth Group Inc. (UNH, 12.53), CVB Financial Corp. (CVBF, 11.89)|