By: Manisha Sethi Oct. 23, 2018

On August 10, 2018, Investec Asset Management disclosed its SEC 13F filings and reported a portfolio value of $736.96 million, of which its top 10 holdings account for 40.84%. Investec Asset Management’s  holdings of about 35.96% belong to the technology sector. It’s largest holding is Alibaba Group Holding Limited with shares held of 422,153 shares.

Investec Asset Management is a specialist in active investment products and services. Established in South Africa in 1991, the firm developed from a small start-up into an international business. Their clients include some of the world’s largest private and public sector pension funds, insurers, and corporates and range from foundations and central banks to intermediate and direct investors. In addition, it manages separate client-focused equity, fixed income, and balanced portfolios as well as equity, fixed income, balanced, currency, and multi-asset mutual funds. For its fixed-income portion of the portfolio, the firm invests in corporate and strategic bonds. It employs a combination of fundamental and quantitative analyses with a top-down approach for stock selection and uses a bottom-up approach to make investments. The firm conducts both in-house and external research to create its portfolio. Investec Asset Management describes its journey thus: “Our emerging market growth story is unmatched. But there’s no magic formula to our success. We believe it’s down to the stability of our team, our enduring culture and our unwavering commitment to our clients.”

A Raltin study reveals that 55.24% of Investec Asset Management’s new stock purchases outperform S&P 500. More specifically, 20% of all stocks or about 21 new stock purchases (between Q1 2014 and Q1 2018) outperform S&P 500 by more than 20%. On the other hand, only 18 out of 105 total stocks (about 17%) underperform S&P 500 by more than 20%. A detailed background on Raltin’s methodology can be found here. The table below classifies Investec Asset Management’s stock on the basis of the various S&P performance categories.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (% )
10 to 20%1918.1
0 to 10%1817.14
-10 to 0%1817.14
-20 to -10%1110.48
Total stocks105


Investec Asset Management bought 38 new stocks in this quarter. Alibaba Group Holding Limited (BABA) and Baidu, Inc. (BIDU) from the communications sector account for 10.61% and 4.49% of the portfolio value. The following table lists the investor’s top 20 new purchases for Q2 2018.

StocksNumber of sharesHolding value ($1,000)
Alibaba Group Holding Limited (BABA)4,22,15378,322
Baidu, Inc. (BIDU)1,36,34433,132
Broadcom Limited (AVGO)94,95623,067
Vale S.A. (VALE)16,35,08120,962
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)5,46,58419,983
Credicorp Ltd. (BAP)61,17113,771
Ternium S.A. (TX)3,86,04513,442
Grupo Aeroportuario del Sureste S.A. de C.V. (ASR)65,80410,473
Cemex S.A.B de C.V. (CX)15,49,42710,164
Silicon Motion Technology Corp. (SIMO)1,76,6079,341
TIM Participacoes S.A. (TSU)4,32,1217,286, Inc. (AMZN)3,8196,492
TransUnion (TRU)89,4396,424
Merck & Co., Inc. (MRK)71,2794,328
Aflac, Inc. (AFL)92,3773,974
NICE Systems Ltd. (NICE)34,4243,572
Parker Hannifin Corp. (PH)21,9013,413
Hess Corp. (HES)49,9493,341
American Financial Group, Inc. (AFG)30,8353,310
WestRock Company (WRK)57,7783,295

The next table presents the investor’s portfolio value for 5 quarters from Q1 2017 to Q1 2017 as well as the top 3 holdings in each period that outperform S&P 500 IRR. Several new purchases by the investor including SodaStream International Ltd. (SODA), Lam Research Corp. (LRCX), KeyCorp (KEY), and NetEase, Inc. (NTES) have performed exceedingly well.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % IRR difference from S&P 500)
Q1 2017153.43Las Vegas Sands Corp. (LVS, 14.4), Morgan Stanley (MS, 14.38), Alphabet Inc. (GOOGL, 10.74)
Q4 2016147.1Valero Energy Corp. (VLO, 15.2), KLA-Tencor Corp. (KLAC, 14.2), Lear Corp. (LEA, 14.12)
Q3 2016157.39SodaStream International, Ltd. (SODA, 134.62), Lam Research Corp. (LRCX, 79.54), Citigroup Inc. (C, 38.0)
Q2 2016115.99KeyCorp (KEY, 54.16), NetEase, Inc. (NTES, 40.16), Apple, Inc. (AAPL, 35.22)
Q1 2016105.28