By: Manisha Sethi Jun. 22, 2018

Junto Capital Management LLC disclosed its SEC 13F filings for Q1 2018 on May 15 and reported a portfolio value of $1,325.35 million, with the top 10 holdings accounting for 47%. Its largest holding is 10,04,348 shares of Microsoft Corp. Junto Capital Management LP was founded in 2013 and is based in New York. The firm primarily provides its services to pooled investment vehicles and manages separate client-focused equity portfolios. The firm invests in public equity markets across the globe and invests in mid- to large-cap companies, employing long- and short-term strategies and fundamental analyses to make its investments. It typically invests in the business services, financials, consumer or retail, telecommunications, media, and technology sectors.

According to a study by Raltin, 71 or 60.68% of Junto Capital Management’s new purchases outperform S&P 500, while 31.62% or about 37 new stock purchases underperform S&P 500 by more than 10% (between Q1 2014 and Q1 2018). Only 22 out of 117 new purchases underperform S&P 500 by more than 20%. A detailed description of Raltin’s methodology can be found here. The following table mentions the various categories for the performance of new purchases relative to S&P 500.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
10 to 20%2017.09
0 to 10%2117.95
-10 to 0%97.69
-20 to -10%1512.82
Total stocks117

In the recent quarter, Junto Capital Management LLC bought 17 new stocks from various sectors. Gartner Inc. (IT) and Metro One Telecommunications, Inc. (INFO) account for 5.17% and 5.03% of the company’s portfolio. The following table elaborates on the new purchases as well as the number of shares and holding value.

StocksNumber of sharesHolding value ($1,000)
Gartner Inc. (IT)583,11468,586
Metro One Telecommunications, Inc. (INFO)1,380,96966,618
Northern Trust Corp. (NTRS)593,14361,171
Verizon Communications Inc. (VZ)1,129,92454,033
Eaton Vance Corp. (EV)864,59448,132
Advance Auto Parts, Inc. (AAP)317,74137,668
Robert Half International, Inc. (RHI)635,88536,811
Dollar General Corp. (DG)279,90326,185
Starbucks Corp. (SBUX)445,85325,810
Worldpay, Inc. (WP)307,57625,295
Yandex N.V. (YNDX)593,93923,431
Facebook, Inc. (FB)140,79122,497
Hudson Ltd. (HUD)1,139,32718,127
Autodesk, Inc. (ADSK)137,79217,304
Walmart Inc. (WMT)190,73216,969
The Madison Square Garden Company (MSG)60,94714,981
ADT Corporation (ADT)199,3101,581

The next table presents Junto Capital Management LLC’s portfolio value from Q1 2017 to Q1 2016 and the top holdings that outperform the S&P 500 IRR each quarter. Several new buys outperform the S&P 500; in particular, Alibaba Group Holding Limited (BABA), KLA-Tencor Corp. (KLAC, 36.04), Schwab Charles Corp (SCHW), and T-Mobile US, Inc. (TMUS) dramatically outperform S&P 500.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 20171,056.97Alibaba Group Holding Limited (BABA, 58.8), EPAM Systems Inc. (EPAM, 40.15), S&P Global Inc. (SPGI, 34.63)
Q4 2016915.67CBOE Holdings, Inc. (CBOE, 49.42), Total System Services, Inc. (TSS, 42.08), Gap, Inc. (The) (GPS, 32.51)
Q3 2016640.211KLA-Tencor Corp. (KLAC, 36.04), Morgan Stanley (MS, 34.22), Microsoft Corp. (MSFT, 13.22)
Q2 2016583.794Schwab Charles Corp (SCHW, 54.31), Adobe Systems, Inc. (ADBE, 32.23), Charter Communications, Inc. (CHTR, 31.9)
Q1 2016684.339T-Mobile US, Inc. (TMUS, 53.94), MarketAxess Holdings, Inc. (MKTX, 35.49), Broadcom Limited (AVGO, 27.02)