By: Manisha Sethi Sep. 04, 2018

Harbourvest Partners LLC disclosed its SEC 13F filings for the first quarter of 2018 on May 15 and reported a portfolio value of $92.90 million. Its top 10 holdings account for 89.77% of the portfolio. Among these, the investor holds 4,44,414 shares of Wayfair Inc that amount to $30.01 million. Harbourvest Partners LLC was founded in 1982 by Brooks Zug and Ed Kane. The private equity investment firm is based out of Boston and specializes in direct, fund-of-funds, and secondary indirect investments as well as all types of private equity funds, including venture capital and leveraged buyout funds. In addition, it holds direct investments in operating companies. Harbourvest Partners LLC is one of the largest private equity investments managers on a global scale.

Raltin analyzed new purchases by Harbourvest Partners LLC since Q1 2014 and calculated their annual internal rate of return (IRR). The analysis shows a key difference between the IRR of the stocks and that of SPDR S&P 500 ETF trust (SPY): 43.75% of the new stock purchases outperform the S&P 500 by more than 20% (details of Raltin’s methodology are available here). Only 25 new purchases out of 64 (Q1 2014-Q1 2018) underperform the S&P 500. The following table shows the number of new stock purchases that outperform S&P.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
>20%2843.75
10-20%69.38
0-10%57.81
-10-0%69.38
-20 to -10%23.13
<-20%1726.56
Total stocks64

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Harbourvest Partners LLC bought 7 new stocks in the most recent quarter, with Roku Inc. (ROKU) of the IT sector and Snap Inc. (SNAP) from communications constituting 7.34% and 5.06% of the portfolio. The table below lists all new buys by the investor in this quarter.

StocksNumber of sharesHolding value ($1,000)
Roku, Inc. (ROKU)219,2876,820
Snap Inc. (SNAP)296,4124,704
Facebook, Inc. (FB)19,7773,160
Redfin Corp (RDFN)113,2572,586
Nutanix, Inc. (NTNX)52,5002,578
WideOpenWest Inc. (WOW)117,592841
Star Gas Partners, LP (SGU)16,381153

The next table presents the investor’s portfolio value for the past five quarters, that is, from Q1:2017. In addition, it shows the top 3 stocks that outperform the S&P 500 in each quarter as well as several new picks by the fund, such as Senseonics Holdings, Inc.; MyoKardia, Inc.; and CytomX Therapeutics, Inc.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017178.79Senseonics Holdings, Inc. (SENS, 56.17), Q2 Holdings, Inc. (QTWO, 19.14)
Q4 2016163.63MyoKardia, Inc. (MYOK, 206.71), CytomX Therapeutics, Inc. (CTMX, 72.99), Acceleron Pharma Inc. (XLRN, 47.09)
Q3 2016181.13Editas Medicine, Inc. (EDIT, 62.2)
Q2 2016207.335Carbonite, Inc. (CARB, 108.62), Five9 Inc. (FIVN, 65.41), CDW Corporation (CDW, 40.58)
Q1 2016233.94Teladoc, Inc. (TDOC, 145.71), The Meet Group Inc. (MEET, 92.69), ViewRay, Inc. (VRAY, 83.2)