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 categoryNumber of new stock purchasesTotal new purchases (%)
10 to 20%611.54
0 to 10%47.69
-10 to 0%917.31
-20 to -10%611.54
Total stocks52


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.

StocksNumber of sharesHolding value ($1,000)
PowerShares QQQ Trust (QQQ)2,175,790348,409
Facebook, Inc. (FB)100,00015,979
Blackhawk Network Holdings, Inc. (HAWK)338,78715,144
Orbital ATK, Inc. (OA)105,00013,924
Callidus Software, Inc. (CALD)322,16411,582
XL Group Ltd. (XL)140,0007,736
Microsemi Corp. (MSCC)114,0007,378
Cavium, Inc. (CAVM)80,0006,350
Aetna, Inc. (AET)35,4275,987
Rockwell Collins, Inc. (COL)42,1365,682
Nutanix, Inc. (NTNX)77,3003,796
DST Systems, Inc. (DST)36,8153,080
Nordic American Tankers Ltd (NAT)2,000,0002,768
Opes Acquisition Corp Unit (OPESU)250,0002,513
DFB Healthcare Acquisitions Corp. Unit (DFBHU)249,8062,511
Double Eagle Acquisition Corp Units (EAGLU)200,0002,030
Nebula Acquisition Corp (NEBUU)200,0002,024
Tiberius Acquisition Corp (TIBRU)200,0002,012
One Madison Corporation (OMAD/U)200,0002,000
Zillow Group, Inc. (ZG)33,5001,802

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%.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017638.68Frontier Communications Corp. (FTR, 236.25), CF Industries Holding, Inc. (CF, 16.98)
Q4 2016546.06UniQure N.V. (QURE, 231.58), Zogenix, Inc. (ZGNX, 211.27), SolarEdge Technologies, Inc. (SEDG, 184.3)