Inside Egerton Capital’s Stock Portfolio – Why Investors Can Learn From It

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Inside Egerton Capital’s Stock Portfolio – Why Investors Can Learn From It

When studying great investors and fund managers, one of the best ways to learn is by looking at their portfolios. Today, let’s unpack the stock picks of Egerton Capital, a hedge fund known for its disciplined and diversified approach.

Portfolio Breakdown (Approximate Allocations)
• Microsoft (MSFT) – 9.4%
• Amazon (AMZN) – 7.5%
• Progressive (PGR) – 7.2%
• Visa (V) – 7%
• Capital One (COF) – 5.1%
• CRH – 4.3%
• Meta Platforms (META) – 4.2%
• Flutter (FLUT) – 4.3%
• CME Group (CME) – 4.3%
• Interactive Brokers (IBKR) – 4.6%
• Ferguson (FERG) – 5%
• MasterCard (MA) – % not shown but significant
• Google (Alphabet)
• Boston Scientific
• GE Aerospace
• Seagate Technology
• Arch Capital
• Canadian Pacific (CP Rail)
• Others – 31.8%

Key Observations

1. Tech at the Core (MSFT, AMZN, META, Google, Seagate)

Egerton leans heavily into Big Tech, but with measured allocations. Microsoft and Amazon alone make up nearly 17%, signaling confidence in AI, cloud, and digital retail trends.

Lesson: Even top funds don’t ignore the transformative power of tech. It’s a growth anchor in modern portfolios.

2. Financial Powerhouses (Visa, MasterCard, COF, PGR, CME, IBKR)

Egerton has strong positions in financial services. From credit card giants (Visa, MasterCard) to insurance (Progressive, Arch) and brokerages (CME, Interactive Brokers), these picks show faith in the resilience of financial infrastructure.

Lesson: Finance stocks provide steady cash flow, dividend potential, and scale — making them a hedge against uncertainty.

3. Healthcare Exposure (Boston Scientific, CRH, Ferguson)

Healthcare companies like Boston Scientific (medical devices) balance the portfolio with defensive growth, since demand for health innovation remains strong even in downturns.

Lesson: Portfolios that include healthcare benefit from stability plus innovation.

4. Industrial & Transportation (GE Aerospace, CP Rail) ✈️

Exposure to GE Aerospace and Canadian Pacific Rail highlights Egerton’s bet on global trade, infrastructure, and travel recovery.

Lesson: Diversification into industrials adds resilience when tech or finance face headwinds.

5. Diversification Matters (31.8% in “Other”)

A significant chunk is spread across “Other” investments, meaning Egerton balances risk by not over-concentrating in a handful of stocks.

Lesson: Even with conviction picks, diversification is key to long-term stability.

Why Investors Can Consider Portfolios Like This
1. Balanced Growth & Stability – The mix of tech growth, financial strength, and healthcare defense shows a well-rounded approach.

2. Conviction but Diversified – Large stakes in winners (MSFT, AMZN) but not at the cost of spreading risk across sectors.

3. Global Exposure – Companies like CP Rail, Flutter, CRH offer diversification beyond U.S. markets.

4. Quality-First Mentality – Every stock here represents a market leader in its space — not speculative bets.

✨ Takeaway:

When building your own portfolio, you don’t need to copy Egerton Capital. Instead:
• Anchor in quality companies you understand.
• Diversify across sectors (tech, finance, healthcare, industrials).
• Balance between growth and defensiveness.
• Leave room for flexibility, just as Egerton has with its “Other” category.

Investor Reflection:
If your portfolio were reviewed like Egerton’s, would it show a clear balance of growth, defense, and diversification — or would it look one-sided?