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 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 categoryNumber of new stock purchasesTotal new purchases (%)
10 to 20%1316.25
0 to 10%1012.5
-10 to 0%1215
-20 to -10%1113.75
Total Stocks80

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.

StocksNumber of sharesHolding value ($1,000)
New Oriental Education & Technology Group, Inc. (EDU)811,17671,100
MercadoLibre, Inc. (MELI)100,65035,871
Vulcan Materials Co. (VMC)305,42334,870
PagSeguro Digital Ltd. (PAGS)535,66520,527
Netflix, Inc. (NFLX)59,89317,689
Microsoft Corp. (MSFT)50,8524,641

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.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 20171112.52GrubHub Inc. (GRUB, 197.81), Planet Fitness, Inc. (PLNT, 84.71), Alibaba Group Holding Limited (BABA, 58.8)
Q4 2016999.16Universal Display Corp. (OLED, 188.16), Activision Blizzard, Inc. (ATVI, 56.18), Dycom Industries, Inc. (DY, 19.47)
Q3 20161119.5Alibaba Group Holding Limited (BABA, 47.28), Restaurant Brands International Inc. (QSR, 27.24), Broadcom Limited (AVGO, 24.52)
Q2 2016817.53Dominos Pizza Inc. (DPZ, 45.58), Charter Communications, Inc. (CHTR, 31.9), Dave & Busters Entertainment, Inc. (PLAY, 26.72)
Q1 2016710Hewlett Packard Enterprise Company (HPE, 18.97), Apple, Inc. (AAPL, 17.11), Spectrum Brands Holdings, Inc. (SPB, 12.5)