By: Manisha Sethi Oct. 12, 2018

On July 17, 2018, Lyell Wealth Management, LP, disclosed its SEC 13F filings for Q2 2018. Per its report, Lyell Wealth Management’s portfolio value is $273.59 million, with its top 10 holdings constituting 29.07% of the portfolio. The firm’s single largest holding is 64,037 shares of Palo Alto Networks, Inc. Further, technology stocks account for 38.16% of the firm’s investments, while the rest is distributed across various sectors including industrials, consumer cyclicals, financials, healthcare, and energy

Lyell Wealth Management is an independent wealth management firm that was founded in 2016 and is headquartered in Menlo Park, CA. The firm serves clients throughout the United States and specializes in extensive financial planning and customized investment management for individuals, families, and select non-profits. The Company offers services including investment management, portfolio management, financial planning, and estate and income tax planning.

Lyell Wealth is an active manager seeking long-term capital gains and income for clients across asset classes. They customize their asset allocation to their client’s circumstances as well as the economic conditions and relative market valuations. Lyell Wealth focusses on tax efficient and fee sensitive investing. Lyell proactively considers how certain investments fit within a client’s taxable and tax-deferred accounts (i.e. a higher dividend paying stock may be in an IRA, while a non-dividend stock is in the taxable account).”

Raltin analyzed the new purchases of Lyell Wealth Management from Q1 2014 to Q1 2018 and calculated their annual internal rate of return. Of the investor’s 90 new purchases, 46 stocks outperform S&P 500, while 44 underperform the index. In addition, 15 new buys or 16.67% outperform the index by more than 20%, whereas 11 new stocks underperform by more than 20%. A detailed description of Raltin’s methodology can be found here. The table below shows the number of new purchases and their performance against S&P 500.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
10 to 20%1820
0 to 10%1314.44
-10 to 0%2022.22
-20 to -10%1314.44
Total stocks90


Lyell Wealth Management, LP, bought 7 new stocks in Q2 2018. The following table lists all its new buys for the quarter along with their number of shares and holding values.

StocksNumber of sharesHolding value ($1,000)
Shopify Inc. (SHOP)7,4281,084
Royal Dutch Shell plc (RDS.B)4,996363
AT&T, Inc. (T)6,826219
Baker Hughes, a GE company (BHGE)6,600218
Oritani Financial Corp. (ORIT)11,480186
Global Water Resources, Inc. (GWRS)10,750101
Peak Resorts, Inc. (SKIS)12,15061

The next table shows the investor’s portfolio value for Q1 2017 and Q4 2016 and the top holdings in each quarter that outperform S&P 500 IRR.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % IRR difference from S&P 500)
Q1 2017184.81Vivendi Universal ADS (1 ORD ) (V, 23.05), CF Industries Holding, Inc. (CF, 16.98)
Q4 2016160.95Alibaba Group Holding Limited (BABA, 77.29), Boeing Company (The) (BA, 70.32), D.R. Horton, Inc. (DHI, 67.74)