By: Manisha Sethi Jul. 24, 2018

Penobscot Investment Management Company disclosed its SEC 13F filings for Q1:2018 on May 7 and reported a portfolio value of $416.38 million, with the top 10 holdings amounting to 23.5% of the portfolio. Of the top holdings, SPDR Barclays Investment Grade Floating Rate ETF (FLRN) and Johnson & Johnson (JNJ) account for 3.88% and 2.64% of the portfolio. Penobscot Investment Management Company was founded in 1988 by Douglas Edward Hart and Eugene Howard Clapp and is based in Boston, Massachusetts. The firm primarily provides its services to individuals, high net worth individuals, pension and profit sharing plans, charitable organizations, partnerships, corporations, and other business entities. In addition, the firm manages separate client-focused equity and fixed income portfolios and invests in public equity and fixed income markets.

Raltin recently analyzed new purchases by the investor from Q1 2014 to Q1 2018 and calculated their internal rate of return (IRR). The findings show that 45 out of the 79 new purchases outperform S&P 500. Of these, 29 outperform the index by more than 10%, while 16 underperform by more than 10%. The details of Raltin’s methodology can be found here. The following table presents the performance of the new purchases with respect to S&P 500.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
>20%1012.66
10 to 20%1924.05
0 to 10%1620.25
-10 to 0%1822.78
-20 to -10%1215.19
<-20%45.06
Total stocks79
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StocksNumber of sharesHolding value ($1,000)
Cognizant Technology Solutions Corp. (CTSH)17,3271,395
Wells Fargo & Co. (WFC)25,2061,321
SPDR Utilities Select Sector ETF (XLU)19,350978
iShares MSCI Emerging Markets ETF (EEM)20,089970
iShares MSCI EAFE ETF (EFA)13,146916
Price (T.) Rowe Group, Inc. (TROW)8,355902
Lowe’s Companies, Inc. (LOW)7,655672
Salesforce.com, Inc. (CRM)5,480637
Rockwell Automation, Inc. (ROK)3,435598
Booking Holdings Inc. (BKNG)274570
Royal Dutch Shell plc (RDS.B)7,610499
PayPal Holdings, Inc. (PYPL)6,560498
Laboratory Corp. of America Holdings (LH)2,060333
Duke Energy Corp. (DUK)3,203248
Smith (A.O.) Corp. (AOS)3,484222
CASI Pharmaceuticals, Inc. (CASI)27,000113

The following table presents Penobscot Investment Management Company’s portfolio value from Q1 2017 to Q1 2016 and the top holdings in each quarter that outperforms the S&P 500 IRR. Several new purchases outperform the index; in particular, CASI Pharmaceuticals, Inc. (CASI), S&P Global Inc. (SPGI), Intercontinental Exchange, Inc. (ICE), and Thor Industries, Inc. (THO) outperform  S&P 500 by 163.97%, 34.63%,13.34%, and 32.62%, respectively.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017298.66S&P Global Inc. (SPGI, 34.63), Baxter International, Inc. (BAX, 13.83), Nasdaq, Inc. (NDAQ, 12.56)
Q4 2016289.31CASI Pharmaceuticals, Inc. (CASI, 163.97), Versum Materials, Inc. (VSM, 15.51), Yum! Brands, Inc. (YUM, 9.51)
Q3 2016284.32Thor Industries, Inc. (THO, 32.62), Fortive Corporation (FTV, 23.01), Torchmark Corp. (TMK, 9.24)
Q2 2016280.21Intercontinental Exchange, Inc. (ICE, 13.34), Bank of Hawaii Corp. (BOH, 5.17), SPDR Dow Jones Industrial Average ETF (DIA, 3.7)
Q1 2016267.25Time Warner, Inc. (TWX, 19.98), Dover Corp. (DOV, 10.2)