By: Manisha Sethi Sep. 18, 2018

Foundation Asset Management reported its SEC 13F filings for the first quarter of 2018 on 15 May revealing a portfolio value of $269.93 million. During this period, the firm invested in 6 new stocks and closed out positions in 12 stocks, with its highest holding being 9,14,530 shares in Copart, Inc. (CPRT). The top 10 holdings of the firm comprise 73.78% of the portfolio. Foundation Asset Management is based out of White Plain, New York, where it offers investment advisory, investment management, portfolio construction, security ratings, and risk tolerance services to its America-based clients.

According to a study conducted by Raltin, 60% of Foundation Asset Management’s new purchases outperformed the S&P 500. On the other hand, 28.57% or about 20 new stock purchases (between Q1 2014 and Q1 2018) underperformed the S&P 500 by more than 10%. Only 14 out of 70 of its new purchases underperformed the S&P 500 by more than 20%. A detailed description of Raltin’s methodology can be found here. The following table outlines the various categories of new purchases in terms of their performance vis-a-vis the S&P 500.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
10 to 20%912.86
0 to 10%1115.71
-10 to 0%811.43
-20 to -10%68.57
Total stocks70


In Q1 2018, the firm purchased 6 new stocks across various sectors, including Energizer Holdings (ENR) from the consumer staples sector and Alphabet Inc. Class C (GOOG) from the communications sector, which now comprise 8.77% and 5.05% of the firm’s portfolio, respectively. The table below lists the firm’s new purchases as well as their holding value and the number of shares purchased.

StocksNo. of sharesHolding value ($1,000)
Energizer Holdings, Inc. (ENR)397,23023,667
Alphabet Inc. Class C (GOOG)13,20013,620
Vulcan Materials Co. (VMC)110,00012,559
TripAdvisor, Inc. (TRIP)234,4779,588
Frank’s International NV (FI)220,0007,348
Cardtronics, Inc. (CATM)167,0083,726

The table below lists the firm’s portfolio value from Q1 2017 to Q1 2016 and the top holdings that outperform the S&P 500 IRR each quarter.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017287.85
Q4 2016328.98Triton International Limited (TRTN, 118.15), Brinks Company (The) (BCO, 71.68),AdvanSix Inc. (ASIX, 70.91)
Q3 2016295.41Cognizant Technology Solutions Corp. (CTSH, 36.02)
Q2 2016300.42Williams Companies, Inc. (The) (WMB, 24.56), Olin Corp. (OLN, 6.47)
Q1 2016348.6ONEOK, Inc. (OKE, 70.96), Barrick Gold Corp. (ABX, 25.13), SPX Flow, Inc. (FLOW, 23.69)

Clearly, Triton International Limited (TRTN), Brinks Company (BCO), Cognizant Technology Solutions Corp. (CTSH), and many others outperformed the S&P 500 by a significant percentage.