By: Manisha Sethi Oct. 01, 2018

Blue Rock Advisors, LLC, reported its SEC 13F filings for the first quarter of 2018 on May 15, 2018. The current value of its portfolio is $17.25 million, with the top 10 holdings accounting for 59.62% of the value. The firm has invested in 28 new stocks this quarter, and EQT Corporation tops the list of purchases with a total of 30,383 shares.

Blue Rock Advisors is based in Wayzata and was founded in 1989 by Robert W. Fullerton. The firm exclusively focuses on low net exposure, long-short equity multi-manager funds. It primarily provides its services to pooled investment vehicles and institutional investors. The firm also manages client-focused equity portfolios and invests in public equity markets on the basis of its quantitative in-house and external research analysis.

According to a study conducted by Raltin, 56.85% of Blue Rock Advisors’s new purchases between Q1 2014 and Q1 2018 have outperformed the S&P 500. On the other hand, 32.63% or about 31 new stock purchases have underperformed the S&P 500 by more than 10%. Out of 95 new purchases, 24 have underperformed the S&P 500 by more than 20%. A detailed description of Raltin’s methodology can be found here. The following table lists the new purchases relative to the performance against  the S&P 500.

S&P outperformance category Number of new stock purchasesTotal new purchases (%)
>20% 3334.74
10 to 20%77.37
0 to 10%1414.74
-10 to 0%1010.53
-20 to -10%77.37
<-20%2425.26
Total stocks95

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The SEC registered investment advisor bought 28 new stocks this quarter, belonging to finance, IT, and communications sectors. Of these, EQT Corp. (EQT) from the utilities sector and Continental Resources Inc. (CLR) from the energy industry account for 8.36% and 7.78% of the portfolio respectively. The table below lists the top 20 new purchases, the number of shares bought and the holding value.

StocksNumber of sharesHolding value ($1,000)
EQT Corp. (EQT)30,3831,443
Continental Resources, Inc. (CLR) 22,7671,342
Canadian Natural Resources Limited (CNQ)38,8751,223
Jagged Peak Energy Inc. (JAG)82,9411,172
Chevron Corp. (CVX)8,061919
Plains GP Holdings LP (PAGP)42,229918
WPX Energy, Inc. (WPX)60,331892
Devon Energy Corp. (DVN)27,953889
Anadarko Petroleum Corp. (APC)12,797773
Oasis Petroleum Inc. (OAS)88,163714
EnCana Corp. (ECA)64,508710
Concho Resources, Inc. (CXO)4,582689
Suncor Energy Inc. (SU)18,237630
Cheniere Energy, Inc. (LNG)11,636622
Statoil ASA (STO)24,479579
Targa Resources Corp. (TRGP)12,145534
WildHorse Resource Development Corp (WRD)25,280483
Diamondback Energy, Inc. (FANG)3,636460
SRC Energy Inc. (SRCI)47,127444
Gulfport Energy Corp. (GPOR)41,417400

The following table presents the investor’s  portfolio value for five quarters starting from Q1 2017 to Q1 2016 and the top holdings in each quarter that outperformed S&P 500.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 201721.887Estee Lauder Companies, Inc. (THE) (EL, 65.19), Extended Stay America, Inc. (STAY, 12.44),
Q4 20160.216TPI Composites, Inc. (TPIC, 8.2)
Q3 201645.114Micron Technology, Inc. (MU, 105.49), SVB Financial Group (SIVB, 53.3), MGIC Investment Corp. (MTG, 40.62)
Q2 201610.348GoDaddy Inc. (GDDY, 20.58),
Q1 20168.126Applied Optoelectronics, Inc. (AAOI, 261.89), NVIDIA Corp. (NVDA, 191.02), Arista Networks, Inc. (ANET, 94.92)