Tracking John Armitage’s Egerton Capital Portfolio - Q2 2016 Update

• John Armitage’s 13F portfolio decreased from $10.50B to $8.91B this quarter.
• Egerton Capital increased Alphabet Inc. and Activision Blizzard while reducing Gilead Sciences, Microsoft Corporation, and Visa Inc.
• Charter Communications, Comcast Corporation, and Facebook Inc. are the largest three positions in the portfolio.

John Arimitage’s 13F portfolio decreased 15.15% this quarter from $10.51B to $8.91B. The portfolio is very concentrated with recent 13Fs listing around 30 positions. The largest five individual stock positions are Charter Communications, Comcast Corporation, Facebook Inc., Alphabet Inc. (GOOG), and S&P Global (SPGI) and they add up to ~40% of the entire portfolio.

Below is a summary of the major moves this quarter:

Alphabet Inc. (GOOG): GOOG is a top five 6.87% of the portfolio stake. The position was purchased last quarter at prices between $678 and $767 and increased by ~36% this quarter at prices between $668 and $767. The stock is now at $760.

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

Activision Blizzard (ATVI): ATVI is a fairly large 4.92% of the portfolio position built up in 2015 at prices between $19 and $39. Last quarter saw a one-third reduction at prices between $28.12 and $38.71 while this quarter saw the exact reverse: one-third increase at prices between $33.41 and $39.39. The stock is now at $42.29.

Gilead Sciences (GILD): The original GILD position was a very large stake purchased in Q2 2014 at prices between $66 and $86. In Q4 2014, there was a ~80% reduction at prices between $94 and $112. Q2 2015 saw a ~400% increase at prices between $98 and $120. There was a ~70% selling this quarter at prices between $78 and $102. The stock is now at $78.05 and the stake is at 1.31% of the portfolio.

Microsoft Corporation (MSFT): MSFT is a 2.56% portfolio stake. It was built up to a fairly large stake in H2 2015 at prices between $43 and $56. This quarter saw a two-thirds reduction at prices between $48.43 and $56.46. The stock is now at $56.21.

Visa Inc. (V): V has seen several roundtrips in the portfolio going back to 2008. The current stake was purchased in Q1 2015 at prices between $64 and $68. Q4 2015 & Q1 2016 saw the original stake more than double at prices between $68 and $81. This quarter, the pattern reversed: two-thirds reduction at prices between $73 and $82. The stock is now at $81.33.

Below is a spreadsheet that highlights the changes to John Armitage's Egerton Capital US long stock portfolio as of Q2 2016. For a look at how the portfolio has progressed, see our previous update:

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