We break down the stocks Egerton Capital bought, sold, and held in Q3 2024, including their holdings at the end of the quarter. All data sourced from Egerton Capital's 13F filed on November 05, 2024.
Who is Egerton Capital?
Egerton Capital is a London-based investment firm founded in 1994 by John Armitage. The fund employs a fundamental, research-driven approach to long/short equity investing primarily in European and North American markets. Under Armitage's leadership, Egerton has built a strong reputation for disciplined risk management and consistent performance across market cycles, focusing on high-quality companies with strong management teams and sustainable competitive advantages.
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Portfolio Changes in Q3 2024
New positions
Egerton Capital initiated six new positions during Q3 2024, led by Embraer (ERJ) at $131M and Martin Marietta (MLM) at $110M, while also establishing positions in Vertex Pharmaceuticals (VRTX), Apple (AAPL), Aramark (ARMK), and Chubb (CB).
Bought
Egerton Capital significantly increased its stakes in Uber (UBER) by adding 1.6M shares and Progressive (PGR) by adding 1.3M shares, while also building larger positions in Flutter Entertainment (PDYPF), CRH (CRH), Mastercard (MA), Microsoft (MSFT), and Interactive Brokers Group (IBKR).
Sold
Egerton Capital completely exited its positions in Canadian National (CNI) worth $480M and Cenovus Energy (CVE) worth $203M, while significantly reducing holdings in GE Healthcare (GEHC) by 1.7M shares, ICICI Bank (IBN) by 1.6M shares, Visa (V) by 1.4M shares, Canadian Pacific Kansas City (CP) by 1.4M shares, and Amazon (AMZN) by 827K shares.
New Investments in Q3 2024
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| ERJ | Embraer | 30.2% | NEW | $131.14M |
| MLM | Martin Marietta | 25.3% | NEW | $110.17M |
| VRTX | Vertex Pharmaceuticals | 13.3% | NEW | $57.69M |
| AAPL | Apple | 10.8% | NEW | $47M |
| ARMK | Aramark | 10.5% | NEW | $45.78M |
| CB | Chubb | 9.9% | NEW | $42.9M |
Embraer ERJ
Egerton Capital bought $131.14M of Embraer in Q3 2024. Embraer (ERJ) demonstrated strong growth in Q1 2025, with revenues reaching $1.1 billion (+23% YoY), though it narrowly missed analyst estimates by $64.77 million. The company achieved record profitability with adjusted EBIT margin expanding to 5.6% (vs 0.8% YoY), while maintaining a record $26.4 billion backlog that supports future growth. Recent U.S. tariff announcements pose a 90bps EBIT margin risk for 2025, though management remains confident in guidance through cost mitigation strategies.
- Q1 executive aviation revenue surged 35% YoY to $323 million, driven by 28% increase in jet deliveries.
- Adjusted free cash flow consumed $385.8 million quarterly as working capital builds for increased H2 deliveries.
- Record backlog of $26.4 billion (+25% YoY) includes $7.6 billion in executive aviation orders.
Martin Marietta MLM
Egerton Capital bought $110.17M of Martin Marietta in Q3 2024. Martin Marietta (MLM) delivered strong Q1 2025 results with 8% revenue growth to $1.353B and 23% gross profit expansion, driven by infrastructure demand and pricing power. While net earnings declined due to prior-year asset sale impacts, core operations showed 21% Adjusted EBITDA growth and record aggregates profitability. The company maintains full-year guidance with $6.8-7.2B revenue outlook as IIJA-funded projects accelerate.
- Q1 EPS beat estimates at $1.90 vs $1.82 forecast, driving 2.79% stock price increase post-announcement.
- Aggregates gross profit per ton rose 24% with 30% margins (260bps YoY improvement).
- $499M returned to shareholders in Q1 via dividends/repurchases, supporting total shareholder return focus.
Vertex Pharmaceuticals VRTX
Egerton Capital bought $57.69M of Vertex Pharmaceuticals in Q3 2024. Vertex Pharmaceuticals reported mixed Q1 2025 results with total revenue up 3% YoY to $2.77 billion, driven by a 9% surge in U.S. sales from new therapies like ALYFTREK and JOURNAVX, despite a 5% decline in international markets due to challenges in Russia. The company raised its 2025 revenue guidance by $100 million to $10.8-$11.0 billion, reflecting confidence in its cystic fibrosis franchise and emerging pipeline candidates. Near-term headwinds in international markets are offset by strategic drug launches and advancements in non-opioid pain treatments and gene therapies.
- Revenue grew 3% YoY in Q1 2025 to $2.77 billion, with U.S. sales jumping 9% to $1.66 billion.
- International revenue fell 5% to $1.11 billion amid geopolitical disruptions, but global IP protections remain intact.
- Raised 2025 revenue guidance to $10.8-$11.0 billion (up $100 million at the low end) on strong pipeline momentum.
Apple AAPL
Egerton Capital bought $47M of Apple in Q3 2024. Apple reported record Q1 2025 revenue of $124.3B (up 4% YoY), driven by strong Mac (+16%), iPad (+15%), and Services (+14%) growth, though iPhone sales dipped 1%. Net income rose 7.1% to $36.33B, with diluted EPS climbing 10.1% to $2.40. While Americas and Europe segments grew, Greater China revenue fell 11% to $18.5B, highlighting regional challenges.
- Q1 2025 operating cash flow reached $36.33B, though cash reserves fell to $30.3B due to $18.65B in tax payments.
- Shareholders received $0.25/share dividend in Q1, a 4.2% increase from prior quarter.
- Wearables/Home/Accessories segment declined 2% YoY to $11.75B, marking third consecutive quarterly drop.
Aramark ARMK
Egerton Capital bought $45.78M of Aramark in Q3 2024. Aramark (ARMK) demonstrated strong growth in Q1 2025 with revenue of $4.6 billion (3% YoY increase) and 264% EPS growth to $0.39, driven by operational efficiencies and client retention above 95%. The company reported 30% operating income growth and initiated a share repurchase program, signaling confidence in future performance. Recent results show accelerating momentum with 5% organic revenue growth and improved free cash flow.
- Q1 2025 EPS surged 264% YoY to $0.39, beating estimates by $0.07.
- Operating income margin expanded 100 basis points with record adjusted operating income of $258 million.
- Achieved 5% organic revenue growth in Foodservice segment, with free cash flow improving by $63 million YoY.
Chubb CB
Egerton Capital bought $42.9M of Chubb in Q3 2024. Chubb reported mixed Q1 2025 results with $3.68 core operating EPS beating estimates by 12.88%, while net income declined 37.9% YoY due to California wildfire losses. The company showed premium growth of 5.7% in constant dollars and a 12.2% increase in investment income. Despite catastrophic events, P&C operations remained profitable with an 82.3% ex-CAT combined ratio.
- Q1 EPS of $3.68 beat estimates by $0.40 (12.88% surprise) while revenue of $13.67B exceeded expectations by 3.43%.
- Consolidated net premiums grew 5.7% with P&C up 5.0% and Life Insurance surging 10.3% in constant dollars.
- Pre-tax investment income rose 12.2% to $1.56B, offsetting wildfire-related catastrophe losses that drove combined ratio to 95.7%.
Holdings at the end of Q3 2024
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| MSFT | Microsoft | 9.1% | Added (+15%) | $740.14M |
| PGR | Progressive | 8.8% | Added (+83%) | $716.59M |
| CP | Canadian Pacific Kansas City | 8.3% | Trimmed (-15%) | $671.97M |
| META | Meta | 7.3% | Trimmed (-23%) | $588.75M |
| AMZN | Amazon | 7.0% | Trimmed (-21%) | $571.68M |
| GEHC | GE Healthcare | 6.6% | Trimmed (-23%) | $533.07M |
| IBKR | Interactive Brokers Group | 5.8% | Added (+8%) | $471.39M |
| FI | Fiserv | 5.7% | Trimmed (-6%) | $463.22M |
| PDYPF | Flutter Entertainment | 5.3% | Added (+74%) | $430.79M |
| CRH | CRH | 5.0% | Added (+12%) | $409.51M |
| GE | General Electric | 4.5% | Trimmed (-18%) | $369.02M |
| ACGL | Arch Capital Group | 4.4% | Trimmed (-2%) | $354.8M |
| V | Visa | 4.0% | Trimmed (-54%) | $324.46M |
| MA | Mastercard | 3.9% | Added (+50%) | $313.42M |
| UBER | Uber | 3.1% | Added (+89%) | $254.11M |
| GEV | GE Vernova | 1.9% | Trimmed (-24%) | $152.44M |
| ERJ | Embraer | 1.6% | NEW | $131.14M |
| IBN | ICICI Bank | 1.5% | Trimmed (-28%) | $118.31M |
| MLM | Martin Marietta | 1.4% | NEW | $110.17M |
| HLT | Hilton | 1.2% | Trimmed (-18%) | $93.43M |
| FSLR | First Solar | 1.1% | Trimmed (-51%) | $86.85M |
| VRTX | Vertex Pharmaceuticals | 0.7% | NEW | $57.69M |
| AAPL | Apple | 0.6% | NEW | $47M |
| ARMK | Aramark | 0.6% | NEW | $45.78M |
| CB | Chubb | 0.5% | NEW | $42.9M |
| SN | SharkNinja | 0.2% | Trimmed (-73%) | $19.26M |
| CNI | Canadian National | 0.0% | Exited | $0 |
| CVE | Cenovus Energy | 0.0% | Exited | $0 |
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