By: Manisha Sethi Jul. 10, 2018

Kirr Marbach & Co., LLC disclosed its SEC 13F filings for Q1 2018 on April 17 and reported a portfolio value of $477.12 million, with its top 10 holdings constituting 36.57% of the portfolio. Its highest holding is 278,025 shares of Cognizant Technology Solutions Corp. (CTSH). Kirr Marbach & Co., LLC was founded in 1975 by David M. Kirr and Terry B. Marbach and is based in Columbus. The firm offers its services to high net worth individuals; investment companies; firms providing pension and profit sharing plans, corporate retirement plans, Taft-Hartley plans, and endowments; insurance companies; healthcare organizations; corporations; and foundations. The firm manages separate client-focused equity, fixed income, and balanced portfolios. In addition, it manages mutual funds for its clients. The firm invests in US public equity and fixed income markets. Typically, it invests in growth-oriented value stocks of small-, mid-, and large-cap companies across sectors. The firm selects stocks by conducting fundamental analyses to create its portfolios. It benchmarks the performance of investments against the S&P 500 and Russell 3000 indexes. Further, the firm utilizes a combination of in-house and external research to make its investments.

An analysis by Raltin examined new purchases by the investor since Q1 2014 and calculated its annual internal rate of return (IRR). The difference between the stocks’ IRR and SPDR S&P 500 ETF Trust (SPY) IRR indicates that 54.84% of new stock purchases outperform S&P 500 (Raltin’s detailed methodology can be found here.). Of the 62  new purchases (between Q1 2014 and Q1 2018), 28 outperform S&P 500 by more than 20%, while 23 underperform the index by more than 20%. The following table presents new stock purchases by S&P performance category.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
>20%2133.87
10 to 20%711.29
0 to 10%69.68
-10 to 0%58.06
-20 to -10%812.9
<-20%1524.19
Total stocks62

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Kirr Marbach & Co., LLC purchased 6 new stocks in the most recent quarter, with Nuance Communications, Inc. (New) (NUAN) accounting for 1.65% of the portfolio. The table below lists the investor’s new buys for this quarter along with the number of shares and holding value.

StocksNumber of sharesHolding value ($1,000)
Nuance Communications, Inc.(New) (NUAN)5,00,3957881
OMNOVA Solutions, Inc. (OMN)41225433
Viad Corp. (VVI)7805409
Viemed Healthcare (VIEMF)45500111
Castle Brands, Inc. (ROX)1100014
Wound Management Technologies, Inc. (WNDM)300001
Total stocks62

The following table presents the investor’s portfolio value from Q1 2017 to Q1 2016 and the top holdings that outperform S&P 500 in each quarter.

PeriodTotal portfolio value ($Mn)Top holdings (Ticker, % of IRR difference from S&P 500)
Q1 2017483.7Modine Manufacturing Co. (MOD, 61.96),
Q4 2016502.8Support.com, Inc. (SPRT, 162.75), Virtusa Corp. (VRTU, 56.31), ILG, Inc. (ILG, 37.49)
Q3 2016466.66Pendrell Corporation (PCO, 879.91), Orbital ATK, Inc. (OA, 58.75), Extended Stay America, Inc. (STAY, 24.78)
Q2 2016492.77Haemonetics Corp. (HAE, 20.79), Liberty Media, Sirius XM Group Series C (LSXMK, 19.65), Liberty Media, Sirius XM Group Series A (LSXMA, 18.44)
Q1 2016502.91CECO Environmental Corp. (CECE, 54.54), II-VI Inc. (IIVI, 51.35), NetScout Systems, Inc. (NTCT, 50.51)