By: Manisha Sethi Aug. 31, 2018
Sompo Japan Nipponkoa Asset Management disclosed its SEC 13F filings for Q1 2018 on April 25 and reported a portfolio value of $616.10 million, with the top 10 holdings accounting for 29%. Of the top holdings, Alphabet Inc. Class A (GOOGL) from the technology sector and Johnson & Johnson (JNJ) from the healthcare sector account for 3.80% and 3.53% of the portfolio. Technology occupies the largest portion of the investor’s portfolio with a 25% share. Established in 1986, Sompo Japan Nipponkoa Asset Management (SNAM) is a leading asset manager of the Japanese Assets in Sompo Holdings Group. It operates as an asset management firm and offers portfolio construction, risk management, financial planning, and investment advisory services to individuals, institutions, trusts, and private clients. Further, the firm manages equity and fixed-income funds for its clients. It invests in public equity and fixed-income markets across the globe and primarily in companies’ value stocks.
According to a Raltin analysis, about 57.15% or 56 new purchases of Sompo Japan Nipponkoa Asset Management outperform S&P 500. Of these, 42 new stock buys (between Q1 2014 and Q1:2018) outperform S&P 500 by more than 10%, whereas 27 out of the 98 new buys underperform the index by more than 10%. Raltin’s detailed methodology to calculate S&P 500 outperformance can be found here. The following table shows the total number of new stock purchases and various S&P performance-based categories.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|10 to 20%||18||18.37|
|0 to 10%||14||14.29|
|-10 to 0%||15||15.31|
|-20 to -10%||10||10.2|
Sompo Japan Nipponkoa Asset Management Company bought 4 new stocks in the recent quarter from sectors including transport, utilities, consumer discretionary, and healthcare. The next table lists new purchases by the investor as well as the number of shares and holding value.
|Stocks||Number of shares||Holding value ($1,000)|
|United Parcel Service, Inc. (UPS)||44,840||4,693|
|American Electric Power Company, Inc. (AEP)||50,140||3,439|
|Fortune Brands Home & Security, Inc. (FBHS)||40,110||2,362|
|Allergan plc (AGN)||13,060||2,198|
The following table presents Sompo Japan Nipponkoa Asset Management Company’s portfolio value for Q1 2017 and Q4 2016 and the top holdings in each quarter that outperform the S&P 500 IRR. Several new buys outperform the index; in particular, Adobe Systems, Inc. (ADBE), Alibaba Group Holding Limited (BABA), PayPal Holdings, Inc. (PYPL), and Lam Research Corp. (LRCX) outperform the index by more than 50%.
|Period||Total portfolio value (million dollars)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q1 2017||802.64||Adobe Systems, Inc. (ADBE, 54.62), Northrop Grumman Corp. (NOC, 35.28), Raytheon Co. (RTN, 30.0)|
|Q4 2016||768.15||Alibaba Group Holding Limited (BABA, 77.29), PayPal Holdings, Inc. (PYPL, 67.4), Lam Research Corp. (LRCX, 54.92)|