|SYMBOL||% OF PORTFOLIO|
|JPMorgan Chase & Co.||JPM US||4.1%|
|Assured Guaranty Ltd.||AGO US||3.3%|
|Nomad Foods Ltd.||NOMD US||3.1%|
|Enterprise Products Partners L.P.||EPD US||3.0%|
|Devon Energy Corp.||DVN US||2.9%|
|Citigroup, Inc.||C US||2.7%|
|PennyMac Mortgage Investment Trust||PMT US||2.4%|
|Oaktree Capital Group, LLC||OAK US||2.3%|
|HP, Inc.||HPQ US||2.0%|
|TRI Pointe Group, Inc.||TPH US||1.9%|
|Flex Ltd.||FLEX US||1.6%|
|ARRIS International plc||ARRS US||1.5%|
|Apollo Global Management, LLC||APO US||1.5%|
|Capital One Financial Corp.||COF US||1.5%|
|Teekay LNG Partners L.P.||TGP US||1.2%|
|ADT, Inc.||ADT US||1.2%|
|ITT, Inc.||ITT US||1.1%|
|McDermott International, Inc.||MDR US||1.0%|
|AXA Equitable Holdings, Inc.||EQH US||1.0%|
|Owens-Illinois, Inc.||OI US||1.0%|
|Acushnet Holdings Corp.||GOLF US||0.8%|
|Callaway Golf Co.||ELY US||0.7%|
|Navient Corp.||NAVI US||0.3%|
JPMorgan is a diversified financial company with banking, investment banking, private banking, asset management, securities services and credit card operations. The entity is the result first of a merger between JP Morgan and Chase Manhattan and then the acquisition of BankOne by JPMorgan Chase.
The diversified nature of JPM gives it some characteristics that are different from a traditional bank. Investment banking and securities processing are impacted more by the level of activity in the financial markets than by economic strength or interest rate movements. Revenue growth in asset management and private banking is mostly a function of growth in assets under management. Credit card operations are similar to traditional banking and can benefit from the economies of scale that have resulted from combining JPMorgan Chase and BankOne.
JPM believes that its various business units can improve the profitability of each other. Loans to potential investment banking clients have the potential to help win investment banking deals and increase loan volume. There may be synergies between asset management, private banking and investment banking. However, realizing the synergies between these businesses is not easy or automatic.
Jamie Dimon is the Chairman and CEO of JPM. Dimon is one of the most respected and highly thought of managers in the financial services sector. Prior to Dimon becoming CEO, JPMorgan Chase had not delivered the results that investors hoped for. The performance of the company in navigating the liquidity crisis and credit problems associated with the housing downturn and recession of 2007-2008 appears to have been extremely favorable relative to other industry leaders and could position the company for market share gains and high profitability in the future.
Assured Guaranty Ltd. operates as a holding company, which through its subsidiaries provides credit protection products to the U.S. and international public finance, and structured finance markets. It conducts its financial guaranty business on a direct basis from the following companies: Assured Guaranty Municipal Corp.; Assured Guaranty Corp.; Municipal Assurance Corp.; and Assured Guaranty (Europe) Ltd. The company was founded in August 2003 and is headquartered in Hamilton, Bermuda.
Enterprise Products Partners LP is a North American midstream energy company that is engaged in providing a wide range of services to producers and consumers of natural gas, natural gas liquids or NGLs, crude oil, refined products and certain petrochemicals. The company operates through following reportable segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services and Petrochemical & Refined Products Services. The NGL Pipelines & Services segment includes natural gas processing plants and related NGL marketing activities; NGL pipelines aggregating; NGL and related product storage and terminal facilities; and NGL fractionation facilities. This segment also includes the company's import and export terminal operations. The Crude Oil Pipelines & Services business segment includes crude oil pipelines, crude oil storage terminals and crude oil marketing activities. The Natural Gas Pipelines & Services business segment includes natural gas pipeline systems that provide for the gathering and transportation of natural gas in Colorado, Louisiana, New Mexico, Texas and Wyoming. This segment also includes natural gas marketing activities. The Petrochemical & Refined Products Services segment consists of propylene fractionation facilities, pipelines and related marketing activities; a butane isomerization facility and related pipeline system, octane enhancement and high purity isobutylene production facilities; refined products pipelines and related marketing activities and marine transportation and other services. Enterprise Products Partners was founded by Dan L. Duncan in April 1998 and is headquartered in Houston, TX.
Devon Energy Corp. engages in the exploration, development, and production of oil, natural gas and natural gas liquids. It operates through the following geographical segments: U.S., Canada, and EnLink. It develops and operates Delaware Basin; Eagle Ford; Heavy Oil; Baarnett Shale; STACK; Rockies Oil; Marketing and Midstream; and Contractors, Suppliers, and Vendors. The company was founded by J. Larry Nichols and John W. Nichols in 1971 and is headquartered in Oklahoma City, OK.
Citigroup is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world. The Company's services include investment banking, retail brokerage, corporate banking, and cash management products and services.
Citigroup's strategy focuses on banking trade flows between emerging markets, banking the affluent customer in emerging markets, and restructuring its U.S. retail bank. Citigroup has a global franchise with the ability to capture the banking revenues associated with trade flows as well as handle the cash management business of corporations. Banking the global emerging consumer is an attractive business with good returns and also provides Citigroup with the necessary deposits to fund its Corporate bank. Lastly, the realignment of the U.S. business and redeployment of that capital into higher return businesses with the potential for faster growth could lead to a business with a better than industry returns over time.
PennyMac Mortgage Investment Trust is a specialty finance company which through its subsidiaries invests primarily in residential mortgage loans and mortgage-related assets. It operates through two segments: correspondent lending and investment activities. The correspondent lending segment focuses on the purchase for resale of newly originated mortgage loans. The investment activities segment focuses on mortgage assets that are acquired and held for investment purposes. The company's objective is to provide attractive risk-adjusted returns to its investors over the long-term, primarily through dividends and secondarily through capital appreciation. It is managed by PNMAC Capital Management LLC an investment adviser. Its primary focus is on investing in distressed residential mortgage loans. PennyMac Mortgage Investment Trust was founded on May 18, 2009 and is headquartered in Moorpark, CA.
Oaktree Capital Group LLC is a global investment management company, which focuses on alternative markets. It provides investment management services through funds and separate accounts. The company's closed-end funds are typically structured as limited partnerships that have a 10 or 11 year term and have a specified period during which clients can subscribe for limited partnership interests in the fund. Its open-end funds are structured as limited partnerships that are designed to admit clients as new limited partners or accept additional capital from existing limited partners on an ongoing basis during the fund's life. The company's evergreen funds invest in marketable securities on a long and short basis. It investments in a number of strategies within six asset classes: distressed debt, corporate debt, control investing, convertible securities, real estate and listed equities. The company's predecessor was founded by Howard Stanley Marks, Bruce Allen Karsh, Stephen A. Kaplan, Larry W. Keele, D. Richard Masson and Sheldon Michael Stone in April 1995. Oaktree Capital Group was founded in April 13, 2007 and is headquartered in Los Angeles, CA.
Source - Factset
HP Inc. provides products, technologies, software, solutions and services to individual consumers, small and medium-sized businesses and large enterprises, including customers in the government, health and education sectors. It operates through seven business segments: Personal Systems, Printing, Enterprise Group, Enterprise Services, Software, HP Financial Services and Corporate Investments. The Personal Systems segment provides commercial personal computers, consumer PCs, workstations, calculators and other related accessories, software and services for the commercial and consumer markets. The Printing segment provides consumer and commercial printer hardware, supplies, media and scanning devices. Printing is also focused on imaging solutions in the commercial markets. The Enterprise Group segment provides servers, storage, networking, technology services and, when combined with HP's Cloud Service Automation software suite, the HP CloudSystem. The CloudSystem enables infrastructure, platform and software-as-a-service in private, public or hybrid environments. The Enterprise Services segment provides technology consulting, outsourcing and support services across infrastructure, applications and business process domains. This segment is divided into two units: Infrastructure Technology Outsourcing and Application and Business Services. The Infrastructure Technology Outsourcing unit delivers services that encompass the data center, IT security, cloud-based computing, workplace technology, network, unified communications, and enterprise service management. The Application and Business Services unit helps clients develop, revitalize and manage their applications and information assets. Its offerings include licenses, support, professional services, and software-as-a-service in order to provide an endto- end solution to customers. The Software segment provides enterprise information management and security solutions for businesses and enterprises of all sizes. The HP Financial Services segment provides a broad range of value-added financial life cycle management services. This segment offers leasing, financing, utility programs and asset recovery services, as well as financial asset management services. The Corporate Investments segment includes HP Labs, the webOS business and certain business incubation projects. The company was founded by William R. Hewlett and David Packard in January 1939 and is headquartered in Palo Alto, CA.
TRI Pointe Homes, Inc. is engaged in the design, construction and sale of innovative single family homes in planned communities. It also builds, markets and sells homes for independent third-party property owners. The company operates through six segments: Maracay, Pardee, Quadrant, Trendmaker, TRI Pointe and Winchester. The Maracay segment includes operations in Arizona. The Pardee segment includes operations in California and Nevada. The Trendmaker segment includes operations in Texas. The TRI Pointe segment includes operations in California and Colorado. The Winchester segment includes operations in Maryland and Virginia. TRI Pointe Homes was founded by Douglas F. Bauer, Thomas J. Mitchell and Michael D. Grubbs in April 2009 and is headquartered in Irvine, CA.
Source - Factset
Apollo Global Management LLC is a global alternative investment manager. It provides private equity, credit-oriented capital markets and real estate. The company raises, invests and manages funds on pension and endowment funds as well as other institutional and individual investors. It operates through three business segments: Private Equity, Credit and Real Estate. The Private Equity segment invests in control equity and related debt instruments, convertible securities and distressed debt instruments. The Credit segment primarily invests in non-control corporate and structured debt instruments. The Real estate segment invests in legacy commercial mortgage-backed securities, commercial first mortgage loans, mezzanine investments and other commercial real estate-related debt investments. The company was founded in 1990 and is headquartered in New York, NY.
Capital One is a diversified financial services holding company. The company's services include domestic and international credit card lending, consumer banking, and commercial banking. Capital One is the fourth largest issuer of Visa and MasterCard credit cards in the United States and became the 5th largest U.S. depository in February 2012 when it acquired the U.S. business of ING Direct.
Capital One's business model generates high return on assets and high end of industry returns on tangible common equity (ROTCE). Its business model held up through the recession and has only been modestly impacted by regulation. As a result of its high ROTCE business model, Capital One generates capital quickly which enables it to grow organically while returning capital to shareholders.
|SYMBOL||% OF PORTFOLIO|
|US Foods Holding Corp.||USFD US||4.8%|
|Thermo Fisher Scientific, Inc.||TMO US||4.2%|
|Gilead Sciences, Inc.||GILD US||3.9%|
|Alphabet, Inc.||GOOG US||3.9%|
|RPC Group plc||RPC LN||3.3%|
|Medtronic plc||MDT US||2.9%|
|Facebook, Inc.||FB US||2.9%|
|China Mobile Ltd.||941 HK||2.4%|
|Comcast Corp.||CMCSA US||2.4%|
|Apple, Inc.||AAPL US||2.0%|
|O'Reilly Automotive, Inc.||ORLY US||1.8%|
|Starbucks Corp.||SBUX US||1.8%|
|United Parcel Service, Inc.||UPS US||1.6%|
|Activision Blizzard, Inc.||ATVI US||1.4%|
|Cognizant Technology Solutions Corp.||CTSH US||1.2%|
|CarMax, Inc.||KMX US||1.2%|
|Fortis, Inc./Canada||FTS US||1.0%|
|Domino's Pizza Group plc||DOM LN||0.7%|
Thermo Fisher manufactures and distributes consumables, lab equipment, analytical instruments, software and services that are used in health care and life sciences research and diagnostics. The company’s portfolio of products includes instruments for mass spectrometry, elemental analysis, sample preparation, and air-quality monitoring. Its diverse customer base includes pharmaceutical and biotechnology companies, hospital and clinical diagnostic labs, universities, research institutions and government agencies, as well as environmental and industrial companies.
Thermo Fisher was formed in November 2006, with the merger of Thermo Electron and Fisher Scientific. The merger combined the technological breadth of Thermo’s product line with the distribution and purchasing convenience of Fisher Scientific’s Catalog distribution business. The current company is divided into two segments, Lab Products and Analytical Technologies. Within Lab Products, the Fisher Catalog and the company website provide a one-stop shop with an extensive selection of routine lab products. The Analytical Technologies segment sells advanced technologies and workflow solutions directly to lab scientists.
Investors are concerned about overall R&D spending as Pharma and Biotech companies merge and look to cut costs. While Thermo Fisher’s sales will have some sensitivity to an R&D spending slump, the majority of TMO’s sale are tied to everyday lab operations, which help insulate the company from end-demand weakness.
Gilead Sciences is a biopharmaceutical company that focuses primarily on antivirals, cardiovascular conditions, and respiratory diseases. Gilead has grown rapidly since its 1987 founding, with results driven in recent years by the company's strong HIV treatment franchise. The company's HIV drugs Viread, Truvada and Atripla are safe, efficacious and easy for patients to take (Atripla, for example, simplifies a once burdensome treatment regiment to one pill once a day). Unfortunately, HIV/Aids continue to be a growing problem in developed and developing countries all over the world. The good news is that if HIV patients are diagnosed and treated early enough, Gilead's products can help these patients live healthy and productive lives for decades.
Gilead has recently expanded into a limited number of new treatment areas, both through internal development and acquisitions. Gilead's pipeline includes potentially compelling products for the treatment of HIV/Aids, resistant hypertension, and other areas of patient need.
Alphabet, Inc. is a newly founded holding company for the Google group of businesses. Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure (the 'Google business'). Businesses such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X, will be managed separately from the Google business. The new legal and operating structure will be introduced in phases over the coming months and when finalized, Google anticipates that it will result in two reportable segments for financial reporting purposes, with the Google business presented separately from other Alphabet businesses taken as a whole. Accordingly, Alphabet will report its results under this new structure commencing with its Q4 earnings release and its Annual Report on Form 10-K for the period ending December 31, 2015. The company was founded on 2nd October, 2015 and is headquartered in Mountain View, CA.
Medtronic Plc engages in the medical technology of alleviating pain, restoring health, and extending life for millions of people around the world. Its primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations. The company operates through four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. The Cardiac and Vascular Group consists of three divisions: Cardiac Rhythm & Heart Failure, Coronary & Structural Heart and Aortic & Peripheral Vascular. The Minimally Invasive Technologies Group consists of two divisions: Surgical Solutions and Patient Monitoring and Recovery. The Restorative Therapies Group consists of four divisions: Spine, Neuromodulation, Surgical Technologies and Neurovascular. The Diabetes Group consists of three divisions: Intensive Insulin Management, Non-Intensive Diabetes Therapies and Diabetes Services & Solutions. The company was founded on January 26, 2015 and is headquartered in Dublin, Ireland.
Facebook hosts a social networking service that allows its members to share content among their various social circles, and to restrict access through specified criteria. It is currently the pre-eminent global social platform, with ample room for international penetration growth, especially in emerging markets. It also has great scope to monetize its user base globally and to enjoy greater market share of online advertising, especially on mobile devices.
China Mobile is the incumbent wireless provider in China and is the world's largest wireless telecom operator with over 760 million mobile subscribers. The company holds licenses to operate nationwide 2G (GSM) and 3G (TD-SCDMA) services. China Mobile's dominant 2G network covers over 98% of the population. In its 3G network China Mobile continues to gain market share, having added over 100 million customers in 2013.
Towards the end of 2013, China Mobile was the first wireless telecom carrier in China to receive a 4G (TD-LTE) network license. The company is focused on building the infrastructure to support the 4G (TD-LTE) technology and have half a million base stations around China that will deliver continuous coverage to all cities and urban areas by the end of 2014. China Mobile may grow revenue and operating profit through driving higher data usage and 4G penetration, increasing minutes of use, managing churn, and continuing to add subscribers.
As the incumbent telecom, China Mobile benefits from significant economies of scale and a mature, cash generative, core franchise. Over the next few years capital expenditure should decrease and free cash flow generation should ramp up in a company that already pays an attractive dividend.
Comcast Corp. is a media, entertainment and communications company. The company provides video, high-speed Internet and phone services to residential and business customers in the United States. The company operates its business through five reportable segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. The Cable Communications segment provides video, high-speed Internet and voice services to residential and business. The Cable Networks segment provides national cable television networks, regional sports and news networks, international cable networks, cable television production studio, and related digital media properties. The Broadcast Television segment provides NBC and telemundo broadcast networks. The Filmed Entertainment segment consists of the operations of universal pictures, which produces, acquires, markets and distributes filmed entertainment and stage plays worldwide. The Theme Parks segment provides universal theme parks in Orlando and Hollywood. Comcast was founded by Ralph J. Roberts, Daniel Aaron and Julian A. Brodsky in 1963 and is headquartered in Philadelphia, PA.
Apple designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players. It also sells a variety of related software, services, peripherals, and networking solutions.
Starbucks Corp. engages in the manufacture and sale of coffee and tea. The firm operates through the following segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; Channel Development; and Other. Its brand portfolio includes Starbucks Coffee, Seattle's Best Coffee, Tazo Tea, Evolution Fresh, La Boulange, and Torrefazione Italia Coffee. The company was founded in 1971 and is headquartered in Seattle, WA.
Source - Factset
United Parcel Service, Inc. is a logistics and package delivery company, which provides supply chain management services. Its logistics services include transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance and financing. The company operates its business through three segments: U.S. Domestic Package, International Package and Supply Chain & Freight. The U.S. Domestic Package segment offers a full spectrum of U.S. domestic guaranteed ground and air package transportation services. This segment also offers time-definite, money-back guaranteed and small package delivery services in the U.S. The International Package segment includes small package operations in Europe, Asia-Pacific, Canada and Latin America, the Indian sub-continent, and the Middle East and Africa. This segment also offers guaranteed day and time-definite international shipping services. The Supply Chain & Freight segment offers transportation, distribution and international trade and brokerage services, as well as financial and information services. United Parcel Service was founded by James E. Casey and Claude Ryan on August 28, 1907 and is headquartered in Atlanta, GA.
Aramark operates as a holding company with interest in providing food, facilities and uniform services to education, healthcare, business and industry, sports, leisure and corrections clients. It operates through three reportable segments: Food & Support Services North America, Food & Support Services International and Uniform & Career Apparel. The Food and Support Services North America segment operates four service segments: Education, Healthcare, Business & Industry and Sports, Leisure & Corrections. The Education segment provides clients a single source provider for managed service solutions, including dining, catering, food service and capital project management, convenience-oriented retail operations, grounds and facilities maintenance, custodial, energy, construction, and capital project management. The Healthcare segment offer healthcare organizations a single source provider for managed service solutions, which include food services such as patient food and nutrition services and retail food services, and facilities services such as clinical equipment maintenance, environmental services, laundry and linen distribution, plant operations, energy management, strategic/technical services, supply chain management, purchasing and central transportation. The Business and Industry segment services on-site restaurants, catering, convenience stores and executive dining. It also provides management of housekeeping, plant operations and maintenance, energy management, laundry and linen, groundskeeping, landscaping, transportation, capital program management and commissioning services and other facility consulting services relating to building operations. The Sports, Leisure and Corrections segment provides administers concessions, banquet and catering services, retail services and merchandise sales, recreational and lodging services, and facility management services at sports, entertainment and recreational facilities; and offers correctional food services, and food and facilities management services for parks, as well as operates commissaries, laundry facilities, property rooms and provide food and facilities management services for parks. The Food and Support Services International segment provides food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities serving the general public to worldwide. The Uniform and Career Apparel segment provides rental, sale, cleaning, maintenance and delivery of personalized uniform and career apparel and other textile items on a contract basis and direct marketing of personalized uniforms and career apparel and accessories to businesses, public institutions and individuals. Aramark was founded in 1959 and is headquartered in Philadelphia, PA.
Source – FactSet
Activision Blizzard, Inc. publishes, develops, and distributes interactive entertainment software and peripheral products with a focus on the hard-core gamer in categories including action/adventure, action sports, racing, role playing, simulation, first-person action, music-based gaming and strategy. Hard-core gaming is a stable and growing market with high margins and fewer competitors producing quality games. Investors seem overly concerned that the transition to online gaming will put the hard-core gaming business into decline; we believe that the online transition should help Activision better monetize its games and price discriminate.
Cognizant Technology Solutions Corp. offers information technology, consulting, and business process outsourcing services. It operates through the following segments: Financial Services, Healthcare, Manufacturing, Retail and Logistics, and Other. The Financial Services segment involves in customers providing banking/transaction processing, capital markets, and insurance services. The Healthcare segment offers healthcare providers and payers as well as life sciences customers. The Manufacturing, Retail and Logistics segment comprises of manufacturers, retailers, and customers providing logistics services. The Other segment includes communications, information, media and entertainment, and high technology. The company was founded by Wijeyaraj Kumar Mahadeva and Francisco D'Souza in 1994 and is headquartered in Teaneck, NJ.
Domino's Pizza Group holds the exclusive master franchise to own, operate and franchise Domino's Pizza stores in the U.K., Ireland, and Germany. The company manages a base of over 800 stores, mainly in the U.K. and Ireland. The company is the leading operator in the UK pizza delivery market and has exhibited consistent growth and margin expansion as it expands in a still relatively under penetrated market.
|SYMBOL||% OF PORTFOLIO|
|Alkermes plc||ALKS US||1.9%|
|Pure Storage, Inc.||PSTG US||1.3%|
|Palo Alto Networks, Inc.||PANW US||1.1%|
|Expedia Group, Inc.||EXPE US||0.9%|
|Casa Systems, Inc.||CASA US||0.8%|
|Evolent Health, Inc.||EVH US||0.8%|
|EchoStar Corp.||SATS US||0.8%|
|Akorn, Inc.||AKRX US||0.3%|
Palo Alto Networks, Inc. engages in the provision of network security solutions. It offers network security functions which include threat protection, firewall, intrusion detection system, intrusion prevention system and uniform resource locator filtering. The company was founded by Nir Zuk, Rajiv Batra and Yuming Mao in March 2005 and is headquartered in Santa Clara, CA.
Echostar is a satellite telecom company based in Englewood, CO. The company was spun out of Dish Network at the beginning of 2008 and it operates three businesses: satellite broadband (formerly Hughes Communications), a wholesale satellite services business that leases satellite capacity, and a set top box business. Dish Network remains a major customer.
Satellite broadband internet is a growing service given the recent technological enhancements and Echostar shares the market with only one other competitor. A small but underpenetrated subset of U.S. households, mainly in rural areas, remains under-served by terrestrial broadband. The introduction of high capacity satellites allow Echostar to offer higher speeds and better quality internet service to users.
|% OF PORTFOLIO|
|Cash & Cash Equivalents||5.5%|
It is probable that buying or selling in the Fund portfolio will have occurred since this list was last updated. As a result of this buying or selling, the fund may own more, fewer, or no shares of the stock of any company listed. In addition, the fund may have purchased shares of companies that are not yet included in the above list.
This list of holdings is published with a one month lag on the first business day of each month. Holdings can and do vary over time.