By: Manisha Sethi Sep. 06, 2018
In its latest SEC 13F filings, Newbrook Capital Advisors LP reported 23 holdings and a portfolio value of $1,378.22 million. The form was filed on May 15, 2018, for the first quarter of 2018. In addition, the company shows an increased shareholding in Facebook and Stamps.com by 120.50% and 70%. Newbrook Capital Advisors is based in New York and was founded in 2005 by Robert Nessim Boucai. The firm conducts fundamentally driven analyses to determine investment opportunities across diversified sectors. The firm’s largest shareholding is in the technology sector at 38.43%. The company provides its services to pooled investment vehicles and offers individual clients portfolio investment advice.
Raltin analyzed new purchases by Newbrook Capital Advisors LP since Q1 2014 and calculated their annual internal rate of return (IRR). The difference between the stocks’ IRR and that of SPDR S&P 500 ETF Trust (SPY) indicate that 60% of the new purchases outperform S&P 500. Only 32 out of 80 new purchases (Q1 2014–Q1 2018) underperform the S&P 500. A detailed description of the categories created by Raltin can be found here here. The following table lists the performance of new purchases per category relative to S&P 500.
|S&P outperformance category||Number of new stock purchases||Total new purchases (%)|
|10 to 20%||13||16.25|
|0 to 10%||10||12.5|
|-10 to 0%||12||15|
|-20 to -10%||11||13.75|
In Q1 2018, the firm purchased six new stocks across various sectors, including mega cap stocks such as Netflix (NFLX) and Microsoft Corp. (MSFT). The table below lists new purchases by the firm as well as their holding value and the number of shares purchased.
|Stocks||Number of shares||Holding value ($1,000)|
|New Oriental Education & Technology Group, Inc. (EDU)||811,176||71,100|
|MercadoLibre, Inc. (MELI)||100,650||35,871|
|Vulcan Materials Co. (VMC)||305,423||34,870|
|PagSeguro Digital Ltd. (PAGS)||535,665||20,527|
|Netflix, Inc. (NFLX)||59,893||17,689|
|Microsoft Corp. (MSFT)||50,852||4,641|
The following table presents the portfolio value of the fund for the past five quarters from Q1 2017 to Q1 2016. In addition, it shows the top holdings for each quarter that outperform the S&P 500. The data suggest that, among the various new purchases, GrubHub, Inc.; Planet Fitness; Alibaba Group Holdings Ltd.; and Universal Display Corp. outperform S&P 500.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % of IRR difference from S&P 500)|
|Q1 2017||1112.52||GrubHub Inc. (GRUB, 197.81), Planet Fitness, Inc. (PLNT, 84.71), Alibaba Group Holding Limited (BABA, 58.8)|
|Q4 2016||999.16||Universal Display Corp. (OLED, 188.16), Activision Blizzard, Inc. (ATVI, 56.18), Dycom Industries, Inc. (DY, 19.47)|
|Q3 2016||1119.5||Alibaba Group Holding Limited (BABA, 47.28), Restaurant Brands International Inc. (QSR, 27.24), Broadcom Limited (AVGO, 24.52)|
|Q2 2016||817.53||Dominos Pizza Inc. (DPZ, 45.58), Charter Communications, Inc. (CHTR, 31.9), Dave & Busters Entertainment, Inc. (PLAY, 26.72)|
|Q1 2016||710||Hewlett Packard Enterprise Company (HPE, 18.97), Apple, Inc. (AAPL, 17.11), Spectrum Brands Holdings, Inc. (SPB, 12.5)|