Tracking John Armitage’s Egerton Capital Portfolio – Q1 2018 Update

• John Armitage’s 13F portfolio value increased from $11.42B to $12.29B this quarter.
• Egerton Capital added Union Pacific and WorldPay during the quarter. 
• Adobe Systems, Charter Communications, and Microsoft are the largest three positions in the portfolio.

John Arimitage’s 13F portfolio value increased ~8% this quarter from $11.42B to $12.29B. The portfolio is very concentrated with recent 13Fs listing around 30 positions. The largest five individual stock positions are Adobe Systems, Charter Communications, Microsoft, Bank of America, and S&P Global and they add up to ~28% of the entire portfolio.

Below is a summary:

Bank of America (BAC): BAC is a large (top five) ~5% position established in Q4 2016 at prices between $15.50 and $23 and the stock is now at $28. There was ~28% stake increase this quarter.

Applied Materials (AMAT): The ~5% AMAT stake was 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 $46.13. There was a ~30% reduction this quarter at prices between $46 and $62.

Alphabet Inc. (GOOG): The large ~5% stake was established last quarter at prices between $968 and $1077 and the stock currently trades at $1140.

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

Activision Blizzard (ATVI): ATVI is now a ~3% stake. The original position was built up in 2015 at prices between $19 and $39. Q1 2016 saw a one-third reduction at prices between $28 and $39 while the following quarter saw the exact reverse: one-third increase at prices between $33.50 and $39.50. Q4 2016 saw a two-thirds reduction at prices between $35.50 and $45.50. The pattern reversed again in Q1 2017: 225% increase at prices between $37 and $50. The stock is now at $77.19. There was a ~19% selling in Q2 2017 and that was followed with a ~9% trimming the following quarter. Last quarter saw the pattern reverse: ~22% increase at prices between $58.50 and $67. The position was sold down by ~50% this quarter at prices between $63 and $78.

Constellation Brands (STZ): STZ is a 1.50% 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 $215. Last quarter saw a ~15% reduction and that was followed with a two-thirds selling this quarter at prices between $210 and $230.

MasterCard (MA): MA was first purchased in Q2 2014 at prices between $69 and $78. The position has wavered since. Last three quarters of 2016 had seen the stake more than doubled at prices between $87 and $107. There was a ~40% reduction in Q1 2017 at prices between $105 and $113. The pattern reversed in Q2 2017: ~60% stake increase at prices between $111 and $126. The stock currently trades at $200. There was a ~40% selling last quarter at prices between $140 and $155 and that was followed with a one-third reduction this quarter at prices between $155 and $184.

Below is a spreadsheet that highlights the changes to John Armitage's Egerton Capital US long stock portfolio as of Q1 2018. For a look at how the portfolio has progressed, see our previous update:

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