By: Manisha Sethi May. 23, 2018

Sky Investment Group LLC reported its SEC 13F filings for the fourth quarter of 2017 on January 17, 2018, revealing a portfolio value of $255.86 million, 29.16% of which comes from its top 10 holdings. Sky Investment Group’s top holdings are Philip Morris International, Inc. (PM), Johnson & Johnson (JNJ), Exxon Mobil Corp. (XOM), PepsiCo, Inc. (PEP), and Illinois Tool Works, Inc. (ITW)—clearly, the company invests across all sectors. Sky Investment Group LLC was founded in 2005 and is based in Hartford, Connecticut. The firm provides financial, estate, and tax planning services to its clients who are primarily high net worth individuals. It also caters to families, pension and profit-sharing plans, charitable organizations, businesses, trusts, and estates, and it manages separate client-focused equity, fixed income, and balanced portfolios. The firm invests in the public equity and fixed income markets of the United States, employing fundamental analysis to create its portfolios along with in-house research.

According to Raltin, around 56% or 28 of Sky Investment Group LLC’s new stock purchases have outperformed the S&P 500, out of which 10 new stocks successfully beat the S&P 500 by more than 20%. Only 14% or 7 out of 51 of its new purchases made between Q1 2014 and Q4 2017 underperformed the S&P 500 by more than 20%. Raltin’s detailed methodology for calculating the S&P 500 outperformance is given here. The table below shows the total number of new stock purchases and the various S&P outperformance categories.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (% )
>20%1020
10-20%816
0-10%1020
-10-0%918
-20 to -10%714
<-20%714
Total stocks51

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Sky Investment Group LLC bought 3 new stocks in the most recent quarter from diverse sectors, such as IT, consumer staples, and materials. The table below lists all of the investor’s new purchases in this quarter along with their number of shares and holding value.

StocksNumber of sharesHolding value ($1,000)
Apple, Inc. (AAPL)1,316223
Weyerhaeuser Co. (WY)5,860207
Walmart, Inc. (WMT)2,050202

The following table shows the portfolio value of the investor for the past 5 quarters—Q1 2017 to Q1 2016—and the top holdings in each quarter that outperformed the S&P 500 IRR. Several new purchases by the fund like Cigna Corp. (CI), Fortive Corporation (FTV), and Cummins, Inc. (CMI) have outperformed the S&P 500 by more than 20%.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % IRR difference from S&P 500)
Q1 2017226.6
Q4 2016215.49
Q3 2016215Unilever, PLC ADR (UL, 16.64), Cigna Corp. (CI, 27.39), Fortive Corporation (FTV, 23.01), Polaris Industries, Inc (PII, 19.03)
Q2 2016211.19
Q1 2016202Cummins, Inc. (CMI, 22.83), Stryker Corp. (SYK, 8.0), MetLife, Inc. (MET, 5.51)