By: Manisha Sethi Sep. 26, 2018
Garelick Capital Partners, LP disclosed its SEC 13F filings for Q1 2018 on May 14. The firm reported a portfolio value of $431.14 million and nine new stock purchases. RealPage, Inc. (RP) from information technology and STMicroelectronics N.V (STMP) from consumer discretionary sector are among the investor’s the top holdings. Garelick Capital Partners, LP was established in 2012 by Bruce Jon Garelick and is based in Boston. It primarily invests in the industrials, consumer discretionary, financials, and technology sector, with technology constituting 84% of its portfolio. The registered investment advisor offers financial planning, pension consulting, and market timing services as well as portfolio management services for individuals, small businesses, investment companies, and pooled investment vehicles.
An analysis by Raltin reveals that 56.72% of Garelick Capital Partners’ new stock purchases outperform the S&P 500. More specifically, 35.82% or 24 new stock purchases outperform the S&P 500 by more than 20% between Q1 2014 and Q1 2018. Only 21 of the 67 total stocks underperform the S&P 500 by more than 10%. Details of Raltin’s methodology are available here . The following table shows the number of new stocks that outperform the S&P 500.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|-20 to -10%||8||11.94|
In the most recent quarter, Garelick Capital Partners purchased nine stocks from various sectors. Among these, Alibaba Group Holding Limited and Yandex N.V. from the communications sector account for 6.84% and 5.06% of the portfolio. The table below presents the investor’s new purchases for Q1 2018.
|Stocks||No. of shares||Holding value ($1,000)|
|Alibaba Group Holding Limited (BABA)||160,716||29,498|
|Yandex N.V. (YNDX)||553,488||21,835|
|PagSeguro Digital Ltd. (PAGS)||532,796||20,417|
|Baozun Inc. (BZUN)||431,077||19,778|
|Palo Alto Networks, Inc. (PANW)||86,802||15,756|
|Lending Tree, Inc. (TREE)||37,085||12,169|
|ICHOR Holdings, Ltd. (ICHR)||492,091||11,914|
|Activision Blizzard, Inc. (ATVI)||142,210||9,593|
|iQIYI, Inc. (IQ)||367,051||5,708|
The next table shows the investor’s portfolio value for the past five quarters, that is, from Q1 2017 to Q1 2016. In addition, it shows the top 3 stocks that outperform the S&P 500 in each quarter.
Among its new purchases, Several new picks by the institutional investor like Alibaba Group (BABA), RingCentral (RNG), Mindbody (MB), Stamps.com (STMP), Varonis Systems (VRNS) have successfully outperformed the index.
|Period||Portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q4 2016||449.69||RingCentral, Inc. (RNG, 116.06), Alibaba Group Holding Limited (BABA, 77.29), Micron Technology, Inc. (MU, 68.47)|
|Q3 2016||175.06||MINDBODY, Inc. (MB, 15.39), Symantec Corp. (SYMC, 14.62), New Relic, Inc. (NEWR, 13.86)|
|Q2 2016||130.674||Stamps.com, Inc. (STMP, 61.74), Varonis Systems, Inc. (VRNS, 39.44), HubSpot, Inc. (HUBS, 36.0)|
|Q1 2016||128.260||GrubHub Inc. (GRUB, 16.18), Callidus Software, Inc. (CALD, 13.29), CyberCare, Inc. (CYBR, 4.62)|