Tracking Guy Spier's Aquamarine Capital Portfolio - Q4 2016 Update

• Aquamarine Capital’s 13F portfolio increased from $125M to $149M during the quarter.
• The portfolio remained untouched during the quarter.
• Berkshire Hathaway at ~20% of the portfolio is the largest position.

Guy Spier’s Aquamarine Capital Portfolio increased 18.89% from $125M to $149M during the quarter. The heavy concentration in financials and auto manufacturers paid off as they both outperformed. The portfolio is very concentrated with just 13 positions. The largest five positions are Berkshire Hathaway (BRK.A), American Express (AXP), Fiat Chrysler Auto (FCAU), General Motors Warrants (GM-WTB), and Bank of America (BAC) & WTS (BAC-WTA). They together add up to over two-thirds of the entire portfolio. Most of the top positions have remained steady in recent quarters. Below is a summary of recent activity:

1. Seritage Growth Properties (SRG): The 5.15% portfolio position in SRG had seen a one-third increase in Q2 2016 at prices between $43 and $57.  Last quarter saw another ~80% further increase at prices between $44.50 and $51.37. The stock is now at $41.75. The position was established in Q1 2016 at prices between $38 and $51. For investors attempting to follow Spier, SRG is a good option to consider for further research.

2. Moody’s Corp (MCO): MCO is a small 1.58% of the portfolio stake established in Q1 2016 at prices between $79 and $100 and the stock is now at $107.

3. General Motors Warrants (GM-WTB): GM Warrants is a top-five position at 11.50% of the portfolio. The last significant activity was in Q1 2015 when the original stake saw a one-third increase.

Ferrari NV (RACE), a spinoff from Fiat Chrysler is another significant presence at 7.80% of the portfolio. Fiat Chrysler shares returned almost 50% during the quarter and that stake is now the third-largest at 12.22% of the portfolio.

Below is a spreadsheet that highlights the changes to the portfolio as of Q4 2016. Please check out our previous update to have an idea on how the portfolio is progressing:

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