By: Manisha Sethi May. 04, 2018
Accenture’s regular acquisition spree, supported by strong growth in the cloud business and a huge capital returns policy, may have lured investors to increase their stake in the company. In the last year, Accenture’s stock price has maintained an upward trend.
However, the company is heavily exposed to integration risk and exchange rate risk arising from its acquisition policy and increasing emerging market exposure. Hence, investors with a higher proportion of Accenture shares in their portfolio are vulnerable to these risks.
Raltin evaluated the top 100 holders of Accenture stock and ranked them according to the proportion of Accenture shares in the overall portfolio. Raltin.com looked at 13F forms filed by the funds in Q4 2017 to determine who is likely to be affected the most, based on their stake in the portfolio.
The chart above shows investors who held Accenture shares that exceeded a portfolio composition of 1% and a value of $750 million.
The top five institutional investors that increased their position in the company in Q4 2017 were Amundi Pioneer Asset Management Inc., Wells Fargo & Company, Price T Rowe Associates Inc., Vanguard Group Inc., and APG Asset Management N.V.
In contrast, five investors who reduced their stock positions during the same period were Wellington Management Group LLP, FMR LLC, Capital Research Global Investors, Bank of America Corp., and Massachusetts Financial Services Co.
|Funds||Accenture shares held (In Mn)||Q/Q Growth|
|Amundi Pioneer Asset Management Inc||3.79||310.00%|
|Wells Fargo & Company||6.98||75.00%|
|Deutsche Bank Ag||1.45||52.00%|
|Apg Asset Management N.V.||1.94||52.00%|
|Aqr Capital Management Llc||1.39||50.00%|
|Price T Rowe Associates Inc||3.87||43.00%|
From the top 100 chosen funds, we selected six portfolios based on sequential returns above 40% and shares held above $1 million. Amundi Pioneer Asset, Wells Fargo, and Deutsche Bank saw the highest sequential growth in terms of portfolio value in Q4 2017.
The top five institutional investors who newly added Accenture shares to their portfolios in Q4 2017 were Milestone Resources Group Ltd., Swedbank, Saratoga Research & Investment Management, MetLife Investment Advisors, LLC, and Citadel Advisors LLC.
On the other hand, the five investors who eliminated all Accenture shares from their portfolios during the same period were BlackRock Inc., Credit Agricole S.A., Praesidium Investment Management Company, Sentinel Asset Management, Inc., and Quantitative Investment Management.