Tracking John Armitage’s Egerton Capital Portfolio – Q3 2018 Update

• John Armitage’s 13F portfolio value increased from $13.08B to $13.48B this quarter. 
• Egerton Capital added Charter Communications while dropping Electronic Arts and Facebook.  
• Twenty First Century Fox, Union Pacific, and Charter Communications are the largest three positions in the portfolio.

John Arimitage’s 13F portfolio value increased ~3% this quarter from $13.08B to $13.48B. The portfolio is very concentrated with recent 13Fs listing around 30 positions. The largest five individual stock positions are Twenty First Century Fox, Union Pacific, Charter Communications, Microsoft, and Adobe Systems and they add up to ~41% of the entire portfolio.

Below is a summary:

Bank of America (BAC): BAC is a 2.60% position established in Q4 2016 at prices between $15.50 and $23 and the stock is now at ~$26.99. There was ~28% stake increase in Q1 2018 at prices between $29 and $33 while this quarter saw a ~40% reduction at prices between $27.75 and $31.80.

Applied Materials (AMAT): AMAT was a fairly large stake established in Q1 2017 at prices between $32 and $40 and increased by ~18% the following quarter at prices between $37.50 and $47.50. There was another ~23% increase in Q3 2017 at prices between $41 and $52. The stock currently trades at $35.43. There was a ~30% reduction in Q1 2018 at prices between $46 and $62 and another ~80% reduction last quarter at prices between $45 and $62. The disposal of the remainder ~1% portfolio stake this quarter was at prices between $38 and $50.

Alphabet Inc. (GOOG): The large ~4.5% stake was established in Q4 2017 at prices between $968 and $1077 and the stock currently trades at $1051.

Note: Alphabet Inc. has seen several roundtrips in the portfolio going back to 2011.

Activision Blizzard (ATVI): ATVI is now a large ~4.5% stake. The original position was built in 2015 at prices between $19 and $39. Recent activity follow: 225% increase in Q1 2017 at prices between $37 and $50. Next two quarters saw a ~30% selling. Q4 2017 saw the pattern reverse: ~22% increase at prices between $58.50 and $67. The position was sold down by ~50% next quarter at prices between $63 and $78 while last quarter there was a ~30% increase at prices between $65 and $78. This quarter saw a marginal increase. The stock is now at $46.52.

Constellation Brands (STZ): STZ was a 1.61% portfolio stake established in Q2 2016 at prices between $138 and $165 and increased by ~20% the following quarter at prices between $161 and $171. The stock is now at $191. Q4 2017 saw a ~15% reduction and that was followed with a two-thirds selling last quarter at prices between $210 and $230. There was a ~19% increase last quarter at prices between $215 and $234. The position was sold out this quarter at prices between $200 and $222.

MasterCard (MA): MA was first purchased in Q2 2014 at prices between $69 and $78. The position has wavered since. Recent activity follow: there was a ~40% selling in Q4 2017 at prices between $140 and $155 and that was followed with a one-third reduction next quarter at prices between $155 and $184. Last quarter saw a ~11% increase. There was a ~40% selling this quarter at prices between $196 and $223. The stock is currently trading at ~$200.

Below is a spreadsheet that highlights the changes to John Armitage's Egerton Capital 13F stock portfolio as of Q3 2018. For a look at how the portfolio has progressed, see our previous update:

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