By: Manisha Sethi Jun. 04, 2018

Hills Bank & Trust Co. reported its SEC 13F filings for the first quarter of 2018 on April 13 revealing a portfolio valued at $331.43 million. In the latest quarter, the firm bought 3 new stocks with its highest holding in the stocks category being Home Depot, Inc. (HD) with 44,207 shares amounting to a value of $7.8 million. Hills Bank & Trust Co. (also known as Hillstrust) is a bank based in Hills, Iowa, USA, founded in 1904. It is one of the largest independent banks in Iowa, with over 1,20,000 customers. The bank invests across all sectors with financials forming the largest share of its investments at 40.25%. It also provides personal and business banking products and services, with a primary focus on online banking, business loans, savings accounts, debit cards, mobile banking, checking accounts, personal loans, e-statements, direct deposits, real estate loans, and insurance services.

According to a study conducted by Raltin, 59.72% of Hillstrust’s new purchases have outperformed the S&P 500. On the other hand, 22.22% or about 16 new stock purchases (between Q1 2014 and Q1 2018) have underperformed the S&P 500 by more than 10%. Only 5 of its 72 new purchases underperformed the S&P 500 by more than 20%. A detailed description of Raltin’s methodology can be found here. The following table enlists the various categories of new purchases relative to their performance of the S&P 500.

S&P outperformance categoryNumber of new Stock PurchasesTotal new purchases (%)
10 to 20%1825
0 to 10%1419.44
-10 to 0%1318.06
-20 to -10%1115.28
Total stocks72

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In the new buys category, Hills Bank & Trust Co. bought 3 stocks from the energy and finance sectors. The table below mentions its new buys along with the number of shares and their holding value.

StocksNumber of sharesHolding value ($1,000)
Halliburton Co. (HAL)7,260340
Bank of America Corp. (BAC)7,019211
Guggenheim S&P 500 Pure Growth ETF (RPG)1,871205

The following table presents the portfolio value of the fund for five quarters from Q1 2017 to Q1 2016. In addition, it shows the top holdings for each quarter that outperformed the S&P 500. The data suggest that among its various new purchases,, Inc., Take-Two Interactive Software, Inc., Bank of America Corp., and Masimo Corp. outperformed the S&P 500.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1, Inc. (CRM, 29.46), Aspen Technology, Inc. (AZPN, 22.34), Fortive Corporation (FTV, 17.16)
Q4 2016276.64Take-Two Interactive Software, Inc. (TTWO, 103.77), Dana Holding Corp. (DAN, 49.45), Walker & Dunlop, Inc. (WD, 32.98)
Q3 2016271.64
Q2 2016270.95OraSure Technologies, Inc. (OSUR, 176.62), TTM Technologies, Inc. (TTMI, 115.12), Masimo Corp. (MASI, 58.21)
Q1 2016264.29Bank of America Corp. (BAC, 59.78), Goldman Sachs Group, Inc. (The) (GS, 31.63), Concho Resources, Inc. (CXO, 12.31)