RIT Capital Partners PLC is one of the UK’s largest investment trusts, with net assets in excess of £2 billion. Legendary Lord Jacob Rothschild is the Chairman with Executive Responsibilities; he is supported by an Executive Committee, according to the trust’s website. Recently, the trust disclosed its long equity positions for the second quarter of 2014; it declared holding 7 stocks, with a combined market value of more than $181 million. Let’s take a look at some of the trust’s top holdings.
Rothschild’s largest bet is placed on QUALCOMM, Inc. (NASDAQ:QCOM), a $121.7 billion market cap digital communication technology company. Although RIT Capital has been substantially trimming its stake in the company over the past two quarters, it is still, by far, the most valuable. The trust last disclosed ownership of 596,000 shares of QUALCOMM, Inc. (NASDAQ:QCOM), with a market value of more than $47 million. This position accounts for roughly 26% of the trust’s total equity portfolio.
Another fund with an even larger exposure to QUALCOMM, Inc. (NASDAQ:QCOM) is Ken Fisher’s Fisher Asset Management, which last disclosed having upped its bet on the company by 4%, to 9.28 million shares. This makes it the largest hedge fund shareholder in the company –amongst those we track.
United Technologies Corporation (NYSE:UTX) escalated from the fifth position in the first quarter, to the second spot, in the second quarter. This $95.5 billion market cap high technology products and services provider saw Rothschild boost his participation by 37% over the quarter; he now owns 318,700 shares of United Technologies Corporation (NYSE:UTX), worth more than $36.78 million –which account for more than 20% if the trust’s equity portfolio’s value.
Once again, Fisher Asset Management is the largest hedge fund shareholder of record. Over the second quarter, the fund upped its stake in United Technologies Corporation (NYSE:UTX) by 2%, and now owns 8.27 million shares, with a market value just shy of $1 billion.
McGraw Hill Financial Inc (NYSE:MHFI) came in third, same as in the first quarter, even though the trust reduced its exposure to the company by 7%. RIT Capital now owns 435,000 shares of this $21.15 billion market cap financial information and education company. The position at McGraw Hill Financial Inc (NYSE:MHFI) has gained in value despite the reduction in the amount of shared held: it is now worth more than $36 million (compared to $35.9 million in the first quarter), after the stock price gained 10.7% over the second quarter.
Other major hedge funds with big stakes in McGraw Hill Financial Inc (NYSE:MHFI) are Stephen Mandel’s Lone Pine Capital, which disclosed ownership of 10.99 million shares by the end of the first quarter, and D. E. Shaw, with 3.17 million shares –for the first quarter, as well.
The fourth spot in this list is occupied by a newcomer at RIT Capital’s portfolio: Vale SA (ADR) (NYSE:VALE). This $71.48 billion market cap metals and mining company saw the trust start a position over the second quarter of 2014. Its 1.66 million shares of Vale SA (ADR) (NYSE:VALE), worth more than $21.6 million, account for almost 12% of its total equity portfolio.
Vale SA (ADR) (NYSE:VALE) counts with the support of other institutional and hedge fund investors, like Howard Marks, of Oaktree Capital Management. His fund declared holding 3.35 million shares of the company by the end of the first quarter.
Another newcomer came in fifth. Allegion PLC (NYSE:ALLE) is a $4.8 billion market cap security solutions provider that saw RIT Capital acquire 275,000 shares of its stock over the second quarter. The trust’s stake in Allegion PLC (NYSE:ALLE) is worth more than $15.5 million.
In addition to Mr. Rothschild, several insiders and institutional investors are betting on Allegion PLC (NYSE:ALLE). Amongst these last group, we can count BlackRock, Inc. (NYSE:BLK) and several of its funds.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned.