By: Manisha Sethi Aug. 29, 2018
According to SEC 13F filings on June 20, 2018, the portfolio value of City Financial Investment Company Ltd. has grown by 76.38% to $1,467.59 million from its previous quarter. The top 10 holdings constitute 70.59% of the company’s portfolio. Founded in 1986 in London, City Financial Investment Company invests in diverse sectors, though financial stocks making up the largest chunk (77.4%). It is an independent investment management firm with a range of alternative strategies and UCITS funds, including a fundamental long/short equity fund, six multi-asset funds (four UK-domiciled, two Irish-domiciled), and a diversified fixed income fund.
According to the Raltin, around 52% or 27 new stock buys of City Financial (between Q1 2014 & Q1 2018) have outperformed the S&P 500, whereas rest have underperformed the index. However, only 16 of 52 new stocks have underperformed the index by more than 10%. Raltin’s detailed methodology for calculating the S&P 500 outperformance is given here. The below table shows the total number of new stock purchases and the their S&P performance categories.
| S&P outperformance category | Number of new stock purchases | Total new purchases (%) |
|---|---|---|
| >20% | 17 | 32.69 |
| 10 to 20% | 6 | 11.54 |
| 0 to 10% | 4 | 7.69 |
| -10 to 0% | 9 | 17.31 |
| -20 to -10% | 6 | 11.54 |
| <-20% | 10 | 19.23 |
| Total stocks | 52 |
In the first quarter of 2018, City Financial Investment Company has invested in 30 new stocks. Out these, PowerShares QQQ Trust - Unit Series 1 accounts for 23.05% of the portfolio, with the number shares totaling to 2,175,790 forms . The table below lists down top 20 new buys of the company, the number of shares bought, and their holding value.
| Stocks | Number of shares | Holding value ($1,000) |
|---|---|---|
| PowerShares QQQ Trust (QQQ) | 2,175,790 | 348,409 |
| Facebook, Inc. (FB) | 100,000 | 15,979 |
| Blackhawk Network Holdings, Inc. (HAWK) | 338,787 | 15,144 |
| Orbital ATK, Inc. (OA) | 105,000 | 13,924 |
| Callidus Software, Inc. (CALD) | 322,164 | 11,582 |
| XL Group Ltd. (XL) | 140,000 | 7,736 |
| Microsemi Corp. (MSCC) | 114,000 | 7,378 |
| Cavium, Inc. (CAVM) | 80,000 | 6,350 |
| Aetna, Inc. (AET) | 35,427 | 5,987 |
| Rockwell Collins, Inc. (COL) | 42,136 | 5,682 |
| Nutanix, Inc. (NTNX) | 77,300 | 3,796 |
| DST Systems, Inc. (DST) | 36,815 | 3,080 |
| Nordic American Tankers Ltd (NAT) | 2,000,000 | 2,768 |
| Opes Acquisition Corp Unit (OPESU) | 250,000 | 2,513 |
| DFB Healthcare Acquisitions Corp. Unit (DFBHU) | 249,806 | 2,511 |
| Double Eagle Acquisition Corp Units (EAGLU) | 200,000 | 2,030 |
| Nebula Acquisition Corp (NEBUU) | 200,000 | 2,024 |
| Tiberius Acquisition Corp (TIBRU) | 200,000 | 2,012 |
| One Madison Corporation (OMAD/U) | 200,000 | 2,000 |
| Zillow Group, Inc. (ZG) | 33,500 | 1,802 |
The following table shows the portfolio value of the investor for Q1 2017 and Q4 2016 and the top holdings in each quarter that outperformed the S&P 500 IRR. Frontier Communications Corp. (FTR), UniQure N.V. (QURE), Zogenix, Inc. (ZGNX) have outperformed the index by more than 20%.
| Period | Total portfolio value ($Mn) | Top holdings (ticker, % of IRR difference from S&P 500) |
|---|---|---|
| Q1 2017 | 638.68 | Frontier Communications Corp. (FTR, 236.25), CF Industries Holding, Inc. (CF, 16.98) |
| Q4 2016 | 546.06 | UniQure N.V. (QURE, 231.58), Zogenix, Inc. (ZGNX, 211.27), SolarEdge Technologies, Inc. (SEDG, 184.3) |