Information Technology37.7% Consumer Discretionary19.1% Health Care13.9% Consumer Staples6.6% Industrials6.1% Financials4.2% Materials4.1% Energy3.2% Cash and Cash Equivalents5.2% Software & Services31.3% Retailing11.4% Health Care Equipment & Services7.4% Pharma, Biotech & Life Sciences6.5% Technology Hardware & Equipment4.1% Food, Beverage & Tobacco4.1% Materials4.1% Capital Goods3.9% Consumer Services3.7% Energy3.2%
|% OF PORTFOLIO|
|FleetCor Technologies, Inc.||3.8%|
|Alphabet, Inc. Class C||3.1%|
|Las Vegas Sands Corp.||3.0%|
|Affiliated Managers Group, Inc.||2.5%|
|Wal-Mart Stores, Inc.||2.5%|
|Nielsen Holdings plc||2.5%|
Visa is a credit and debit card company that operates the world's largest retail electronic payments network. Visa cards are issued by banks worldwide, and are accepted at 29 million merchant locations and more than 1.2 million ATMs. Visa has no credit risk as they do not issue cards or make loans to cardholders. Revenue is generated from transaction based services that are processed on Visa's network. Electronic payments are gradually displacing the use of cash and credit globally, providing a secular growth tailwind.
FleetCor Technologies, Inc. manages and processes commercial fuel cards. It provides fuel cards, commercial payment and data solutions, stored value solutions, and workforce payment products and services to businesses, commercial fleets, major oil companies, petroleum marketers and government entities. The company also provides customers with various card products that function like a charge card to purchase fuel, lodging and related products and services at participating locations. FleetCor Technologies was founded in 2000 and is headquartered in Norcross, GA.
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.
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.
Las Vegas Sands operates casinos, hotels and convention facilities. Properties include the Venetian Casino Resort and the Sands Expo and Convention Center in Las Vegas, Nevada; the Sands Macao Casino and Venetian Macao Casino in Macau, China; and the Marina Bay Sands in Singapore. LVS has focused on using convention business to drive higher than industry average non-gaming revenues. The company's strategy is to build signature casino resorts and then connect convention facilities in order to drive more predictable and repeatable customer traffic midweek to its properties.
The Asian gaming opportunity over the next five years is attractive. Demographics in the region are compelling for years of growth driven by low penetration of mass market gaming, growing incomes, easing of travel restrictions for mainland Chinese, and infrastructure development. LVS has positioned itself for leadership in the region with its development plans for the Cotai Strip as well as Singapore, where it is one of two licensed operators. Leading with a strategy that draws convention business to its properties, the Sands aims to repeat its success in the Las Vegas convention market in Asia. The company could also generate equity value for shareholders through real estate development activities in and around the Cotai Strip in order to capture the value of the traffic created by its casino resorts.
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.
Affiliated Managers Group Inc. acquires majority interests in mid-sized investment management firms. Company management targets firms with between $500 million and $15 billion in assets. AMG's current portfolio of affiliates includes Tweedy, Browne, Essex, Friess Associates, Rorer Asset Management, Frontier Capital, The Managers Funds, and Third Avenue. The company differs from most of its competitors in that it typically purchases around a 60% ownership interest vs. 100%. The advantage of AMG's approach is that the company provides a liquidity event for the founders and other shareholders, while creating an incentive structure to keep the younger management talent in place. Principals of the acquired firms typically sign five-year employment contracts as a condition of the investment by AMG. The model appears to have better long term potential than their competitors because there is a strong incentive for investment personnel to remain highly motivated due to the key individuals retaining material ownership in the acquired firms.
The company affiliates, in aggregate, managed in excess of $200 billion in a wide variety of investment styles, from "Graham & Dodd" style value equity to performance-fee driven Aggressive Growth. Assets are roughly equally divided between institutional accounts, high net worth individuals, and mutual funds. Affiliated works with their affiliates in a hands-off fashion, but also leverages their distribution and back office systems to improve asset collection and operating efficiencies. At the time of purchase, most affiliates have displayed strong asset growth. AMG's ownership and resources can typically accelerate the pace of asset gathering.
Wal-Mart Stores, Inc. operates retail stores in various formats around the world. The company operates its business through three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Walmart U.S. segment includes the company's mass merchant concept in the U.S., operating under the Walmart or Wal-Mart brand, as well as walmart.com and also offers financial services and related products, including money orders, prepaid cards, wire transfers, check cashing and bill payment. The Walmart International segment includes numerous formats of retail stores, restaurants, wholesale clubs, including Sam's Clubs, and various retail websites that operate outside the U.S. This segment operates units in three major categories: retail, wholesale and other which consists of numerous formats, including discount stores, supermarkets, supercenters, hypermarkets, retail websites, warehouse clubs, restaurants and apparel stores. The Sam's Club segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and also offers brand name merchandise, which include hard goods, some soft goods and selected private-label items and brands in five merchandise categories namely grocery and consumables, fuel and other categories, technology, office and entertainment, home and apparel and health and wellness. Wal-Mart Stores was founded by Samuel Moore Walton and James Lawrence Walton on July 2, 1962 and is headquartered in Bentonville, AR.
Nielsen Holdings N.V. is a global information and measurement company. The Company offers critical media and marketing information, analytics, and industry expertise about what consumers watch and what consumers buy on a global and local basis. The Company was taken private in 2006 in a leveraged buyout and became public again in January 2011.
Nielsen is a premier, global franchise whose business has high barriers to entry. It has a high level of recurring revenue, a scalable business model, and generates high levels of free cash flow. It is also a beneficiary of two secular trends: the growth of the developing markets' consumer and emerging middle class, and the capture of consumer behavior as consumers enjoy expanding ways in which to consume media.
|Portfolio P/E Trailing 12 Months*||26.6x|
|Portfolio Price to Cash Flow*||17.1x|
|Portfolio Price to Book*||4.8x|
|Median Market Capitalization*||$19.7 B|
|Number of Holdings||49|
|7-Year Beta* (A shares vs. Russell 3000 Growth Index)||1.14|
|Active Share* (vs. Russell 3000 Growth Index)||81.5%|Consistent Growth28.0% Growth Industry Leaders32.8% Emerging Growth34.1% Cash & Cash Equivalents5.2% Large Cap (> $12 B)63.9% Mid Cap ($2.5 to $12 B)32.8% Small Cap (< $2.5 B)3.3%