By: Manisha Sethi May. 07, 2018
Steamboat Capital Partners, LLC, disclosed its SEC 13F filings for the fourth quarter of 2017 on February 14, 2018, reporting a portfolio value of $239.62 million. Its top 10 holdings account for 73.58% of its portfolio, of which LGI Homes, Inc., comprises 12.15% with 3,87,982 shares. Other top holdings of the investor include Twenty-First Century Fox, Inc. (FOX), FleetCor Technologies, Inc. (FLT), Liberty Interactive Ventures Corp Series A (LVNTA), and Alliance Data Systems Corp. (ADS). Steamboat Capital Partners was founded in 2012 by Parsa Kiai in New York. The firm manages equity and fixed income portfolios. It primarily invests in value stocks of companies across all market capitalizations and diversified sectors.
Raltin analyzed Steamboat Capital Partners, LLC’s new purchases since Q1 2014 and calculated their annual internal rate of return (IRR). The analysis shows a key difference between the IRR of the stocks and that of SPDR S&P 500 ETF Trust (SPY): 24% of the new stock purchases outperformed the S&P 500 by more than 20%. (details of Raltin’s methodology are available here). Of the 25 new purchases in Q1 2014-Q4 2017, 13 underperformed the S&P 500. Of these, only 4 new stocks underperformed the index by more than 20%. The following table shows the number of new stock purchases that outperformed S&P.
|S&P outperformance category||Number of new stock purchases||Total new purchases (% )|
|10 to 20%||4||16|
|0 to 10%||2||8|
|-10 to 0%||6||24|
|-20 to -10%||3||12|
Steamboat Capital Partners, LLC, bought 4 new stocks in the most recent quarter, with Twenty-First Century Fox, Inc. Class B (FOX) from the communications sector and Credit Acceptance Corp. (CACC) from the financial sector constituting 11.04% and 4.13% of the portfolio, respectively. The table below lists all of the investor’s new buys in this quarter along with the number of shares and their holding value.
|Stocks||Number of shares||Holding value ($1,000)|
|Twenty-First Century Fox, Inc. Class B (FOX)||775,000||26,443|
|Credit Acceptance Corp. (CACC)||30,600||9,898|
|Viacom, Inc. (VIAB)||200,533||6,178|
|Discovery Communications, Inc. (DISCA)||100,000||2,238|
The following table presents the investor’s portfolio value for the five quarters of Q1 2017 to Q1 2016 and the top holdings in each quarter that outperformed S&P 500. As can be seen, MiX Telematics Limited (MIXT) and Tucows, Inc. (TCX) are stand-outs that outperformed the index by more than 50%.
|Period||Total portfolio value ($Mn)||Top holdings (ticker, % IRR difference from S&P 500)|
|Q4 2016||75.33||MiX Telematics Limited (MIXT, 87.11), Tucows, Inc. (TCX, 79.66), Versum Materials, Inc. (VSM, 15.51)|
|Q3 2016||113.07||Cognizant Technology Solutions Corp. (CTSH, 36.02), Blue Bird Corporation (BLBD, 24.94)|
|Q1 2016||103.56||Smith (A.O.) Corp. (AOS, 19.38),|