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 categoryNumber of new stock purchasesTotal new purchases (%)
10 to 20%3321.29
0 to 10%2113.55
-10 to 0%3321.29
-20 to -10%2415.48
Total stocks155

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.

StocksNumber of sharesHolding value ($1,000)
Booking Holdings Inc. (BKNG)11,23323,369
Watts Water Technologies, Inc. (WTS)186,77014,512
Manhattan Associates, Inc. (MANH)321,03513,445
Forward Air Corp. (FWRD)200,09710,577
Camden Property Trust (CPT)59,4265,002
Bryn Mawr Bank Corp. (BMTC)99,4784,372
Raytheon Co. (RTN)11,0322,381
Schwab U.S. TIPS ETF (SCHP)14,160777
Vanguard Total Stock Market Index Fund (VTI)3,480472
NTT DOCOMO, Inc. (DCM)15,100386
Morgan Stanley (MS)5,283285
BP plc (BP)5,141208
iShares Russell 1000 Growth ETF (IWF)1,475201

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%.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 20176,417.06WEX Inc. (WEX, 39.84), Hyatt Hotels Corp. (H, 29.75), Agilent Technologies, Inc. (A, 14.96)
Q4 20166,267.37ILG, Inc (ILG, 37.49), Versum Materials, Inc. (VSM, 15.51), Adient plc (ADNT, 14.97)
Q3 20166,065.7Dell Technologies Inc. (DVMT, 45.54), Fortive Corporation (FTV, 23.01), Polaris Industries Inc. (PII, 19.03)
Q2 20165,854.91st Source Corp. (SRCE, 32.58), Charter Communications, Inc. (CHTR, 31.9), Globus Medical, Inc. (GMED, 23.68)
Q1 20165,743.48Landstar System, Inc. (LSTR, 17.86), UnitedHealth Group Inc. (UNH, 12.53), CVB Financial Corp. (CVBF, 11.89)