Egerton Capital (UK) LLP Buys 1, Sells 4 in 1st Quarter

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Aug 04, 2022
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Egerton Capital (UK) LLP recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Egerton Capital (UK) LLP is a hedge fund sponsor based out of London that is currently authorized and regulated by the FCA and registered under the SEC. The company was founded in 2013, although Egerton Capital itself can trace its history back to 1994. Egerton Capital (UK) conducts its research in house, utilizing fundamental method with a bottom up investment approach to create a portfolio that is “dynamic, eclectic, and uncorrelated.” The company believes that diversification, both geographically and through sectors, is crucial and emphasizes investments in companies with attractive valuations that have significant upside potential. Egerton Capital (UK) invests in public equity markets on a global scale, utilizing methods that include meeting with company management, analyzing public information, and proprietary and independent research. The company currently invests most heavily in the consumer discretionary and information technology sectors, each making up approximately a third of its total asset allocations, and also invests in the transports, finance, and health care sectors, among others to a lesser degree, in order of decreasing allocation. Egerton Capital (UK) currently has 39 employees with 13 of them being investment professionals. The majority of the company’s ownership is held by its parent company Egerton Capital Limited with remaining ownership split amongst key executives. The company currently holds over $15 billion in total assets under management spread across 6 accounts, all of which are discretionary accounts. Although its total number of accounts held has been decreasing in recent years, its total assets under management has been increasing, growing from $4.6 billion back in 2010 to well over three times that amount today. Egerton Capital (UK) mainly provides to pooled investment vehicles, although it also caters to endowments, fund of funds, high net worth individuals, pension plans, and sovereign wealth funds, among others, to a lesser degree. The company currently manages its Equity Long/Short and Equity Long-Only strategies.

As of the latest 13F report, the guru’s equity portfolio contained 29 stocks valued at a total of $18.98Bil. The top holdings were CP(11.68%), GOOG(10.74%), and MSFT(7.82%).

According to GuruFocus data, these were Egerton Capital (UK) LLP’s top five trades of the quarter.

Shopify Inc


The guru sold out of their 4,188,420-share investment in NYSE:SHOP. Previously, the stock had a 2.69% weight in the equity portfolio. Shares traded for an average price of $82.11 during the quarter.

On 08/04/2022, Shopify Inc traded for a price of $41.93 per share and a market cap of $53.18Bil. The stock has returned -72.46% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 4 out of 10.

In terms of valuation, Shopify Inc has a price-book ratio of 5.71, a EV-to-Ebitda ratio of -22.96 and a price-sales ratio of 9.99.

The price-to-GF Value ratio is 0.23, earning the stock a GF Value rank of 2.

Charter Communications Inc


Egerton Capital (UK) LLP reduced their investment in NAS:CHTR by 822,325 shares. The trade had a 2.5% impact on the equity portfolio. During the quarter, the stock traded for an average price of $587.53.

On 08/04/2022, Charter Communications Inc traded for a price of $452.18 per share and a market cap of $72.64Bil. The stock has returned -41.28% over the past year.

GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 8 out of 10.

In terms of valuation, Charter Communications Inc has a price-earnings ratio of 14.54, a price-book ratio of 7.35, a price-earnings-to-growth (PEG) ratio of 0.78, a EV-to-Ebitda ratio of 8.01 and a price-sales ratio of 1.51.

The price-to-GF Value ratio is 0.58, earning the stock a GF Value rank of 4.

Linde PLC


During the quarter, Egerton Capital (UK) LLP bought 1,171,725 shares of NYSE:LIN for a total holding of 2,443,717. The trade had a 1.97% impact on the equity portfolio. During the quarter, the stock traded for an average price of $309.39.

On 08/04/2022, Linde PLC traded for a price of $300.06 per share and a market cap of $149.54Bil. The stock has returned 0.53% over the past year.

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.

In terms of valuation, Linde PLC has a price-earnings ratio of 43.49, a price-book ratio of 3.78, a price-earnings-to-growth (PEG) ratio of 5.58, a EV-to-Ebitda ratio of 17.03 and a price-sales ratio of 4.71.

The price-to-GF Value ratio is 0.95, earning the stock a GF Value rank of 6.

Netflix Inc


The guru sold out of their 660,464-share investment in NAS:NFLX. Previously, the stock had a 1.86% weight in the equity portfolio. Shares traded for an average price of $416.32 during the quarter.

On 08/04/2022, Netflix Inc traded for a price of $226.73 per share and a market cap of $100.83Bil. The stock has returned -55.61% over the past year.

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.

In terms of valuation, Netflix Inc has a price-earnings ratio of 20.15, a price-book ratio of 5.31, a price-earnings-to-growth (PEG) ratio of 0.71, a EV-to-Ebitda ratio of 5.47 and a price-sales ratio of 3.31.

The price-to-GF Value ratio is 0.37, earning the stock a GF Value rank of 4.

Alphabet Inc


Egerton Capital (UK) LLP reduced their investment in NAS:GOOG by 136,489 shares. The trade had a 1.84% impact on the equity portfolio. During the quarter, the stock traded for an average price of $135.95.

On 08/04/2022, Alphabet Inc traded for a price of $118.78 per share and a market cap of $1,543.94Bil. The stock has returned -12.84% over the past year.

GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 9 out of 10.

In terms of valuation, Alphabet Inc has a price-earnings ratio of 21.93, a price-book ratio of 6.04, a price-earnings-to-growth (PEG) ratio of 0.82, a EV-to-Ebitda ratio of 14.45 and a price-sales ratio of 5.77.

The price-to-GF Value ratio is 0.87, earning the stock a GF Value rank of 9.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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