We break down the stocks Egerton Capital bought, sold, and held in Q4 2024, including their holdings at the end of the quarter. All data sourced from Egerton Capital's 13F filed on February 10, 2025.
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 Q4 2024
New positions
Egerton Capital established eight new positions in Q4 2024, with the largest being Capital One (COF) at $279M, CME Group (CME) at $224M, and Eli Lilly (LLY) at $217M. Other notable new holdings include Lithia Motors (LAD) at $113M, Intercontinental Exchange (ICE) at $109M, LPL Financial (LPLA) at $84M, HDFC Bank (HDB) at $73M, and Howard Hughes (HHH) at $34M.
Bought
The firm significantly increased its position in ICICI Bank (IBN) by adding 2.4 million shares, representing a 61% increase in value. Egerton Capital also added to positions in Arch Capital Group (ACGL) with 817K additional shares, General Electric (GE) with 448K shares, Flutter Entertainment (PDYPF) with 62K shares, and Microsoft (MSFT) with 38K shares.
Sold
Egerton Capital completely liquidated eight positions including Uber (UBER) ($254M), GE Vernova (GEV) ($152M), and Hilton (HLT) ($93M). The firm also made substantial reductions to existing holdings, most notably trimming Alphabet (GOOG) by 1.8 million shares (-48%), Interactive Brokers Group (IBKR) by 1.5 million shares (-31%), and GE Healthcare (GEHC) by 1.1 million shares (-33%). Other significant reductions included Canadian Pacific Kansas City (CP), Amazon (AMZN), RenaissanceRe (RNR), and payment processors Visa (V) and Mastercard (MA).
New Investments in Q4 2024
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| COF | Capital One | 24.6% | NEW | $279.16M |
| CME | CME Group | 19.8% | NEW | $223.97M |
| LLY | Eli Lilly | 19.1% | NEW | $216.92M |
| LAD | Lithia Motors | 10.0% | NEW | $113.25M |
| ICE | Intercontinental Exchange | 9.6% | NEW | $109.27M |
| LPLA | LPL Financial | 7.4% | NEW | $84.14M |
| HDB | HDFC Bank | 6.4% | NEW | $72.83M |
| HHH | Howard Hughes | 3.0% | NEW | $34.15M |
Capital One COF
Egerton Capital bought $279.16M of Capital One in Q4 2024. Capital One (COF) reported Q1 2025 earnings of $3.45 per share, beating estimates by 10.93%, though revenue declined 2% quarter-over-quarter due to fewer days in the period. The company is progressing on its $35.3 billion Discover Financial acquisition, which could reshape its competitive position in credit cards and digital banking. While expense management improved (5% adjusted non-interest expense decline), net interest margin compression remains a headwind.
- Q1 2025 EPS of $3.45 represents 14.6% year-over-year growth from Q1 2024's $3.01.
- Stock gained 12.2% in the 6 months preceding earnings, outperforming S&P 500 Financials sector's 8.4% return.
- Discover acquisition would create #6 US bank by assets with combined $687B in deposits.
CME Group CME
Egerton Capital bought $223.97M of CME Group in Q4 2024. CME Group delivered record financial results in Q1 2025, with $1.6 billion revenue and $1.0 billion adjusted net income, driven by heightened demand for risk management solutions during market volatility. The company saw 19% growth in commodities trading and 12% growth in financials, while international ADV hit a new high of 8.8 million contracts. This performance reflects CME's strategic positioning as the preferred venue for global hedging activity across diversified asset classes.
- Adjusted EPS of $2.80 surpassed estimates by 4.5%, continuing a trend of earnings beats.
- Q1 2025 revenue grew 10% YoY, marking the highest quarterly clearing fees ($1.3B) in company history.
- International trading volumes surged 19%, with 14 analysts raising forward earnings estimates post-earnings.
Eli Lilly LLY
Egerton Capital bought $216.92M of Eli Lilly in Q4 2024. Eli Lilly (LLY) reported robust Q1 2025 revenue growth of 45% to $12.73 billion, driven by strong demand for Mounjaro and Zepbound. However, non-GAAP EPS of $3.34 missed estimates by $0.12, leading to an 8.56% stock decline post-announcement. The company reaffirmed full-year revenue guidance of $58-61 billion and highlighted pipeline advancements, including positive Phase 3 results for oral GLP-1 agonist orforglipron.
- Revenue surged 45% year-over-year in Q1 2025, with U.S. sales up 49% and European sales rising 71% in constant currency.
- Gross margin improved to 83.5%, while non-GAAP operating margin expanded by over 11 percentage points to 42.6%.
- Stock price declined 8.56% post-earnings despite revenue beat, reflecting investor concerns over EPS shortfall and high valuation metrics.
Lithia Motors LAD
Egerton Capital bought $113.25M of Lithia Motors in Q4 2024. Lithia Motors reported record Q1 2025 revenue of $9.2 billion, a 7% YoY increase, driven by strong performance across new vehicle sales, aftersales services, and financing. Diluted EPS surged 35% to $7.94, while adjusted EPS grew 25% to $7.66, reflecting margin expansion and cost discipline. Its diversified omnichannel model and $623 million in Q1 loan originations through Driveway Finance (DFC) position it favorably against peers amid tariff uncertainties.
- 35% YoY EPS growth ($7.94) and 28% net income increase ($211M) in Q1 2025.
- Q1 revenue hit $9.2B, up 7% YoY, with new vehicle unit sales rising 7.4%.
- Driveway Finance generated $623M in loan originations with a 4.6% net interest margin.
Intercontinental Exchange ICE
Egerton Capital bought $109.27M of Intercontinental Exchange in Q4 2024. Intercontinental Exchange (ICE) delivered a record-breaking first quarter in 2025, with 11.7% year-over-year revenue growth to $2.5 billion and 16.2% adjusted EPS growth to $1.72, beating estimates. The company achieved a 61% adjusted operating margin (up 200 bps YoY) and generated $966 million in operating cash flow, driven by record derivatives trading volumes and its diversified technology/data services. CEO Jeffrey Sprecher highlighted ICE's 'all-weather business model' as positioned for continued growth amid macroeconomic uncertainties.
- Q1 2025 adjusted EPS of $1.72 surpassed estimates by 1.2% and increased 16% YoY.
- Record futures & options ADV drove 31% YoY growth in total trading volumes.
- Adjusted free cash flow reached $833 million with unrestricted cash reserves of $783 million.
LPL Financial LPLA
Egerton Capital bought $84.14M of LPL Financial in Q4 2024. LPL Financial reported strong Q1 2025 results with net income rising to $319 million (11% YoY growth) and diluted EPS reaching $4.24. The company demonstrated accelerating organic growth with $70.9B in total organic net new assets, more than quadruple Q1 2024's $16.7B. Recent debt financings and technology investments position the firm for continued expansion through strategic acquisitions and advisor-facing platform enhancements.
- Q1 2025 adjusted EPS of $5.15 represents 21% YoY growth from $4.25.
- Organic net new advisory assets surged to $35.7B in Q1 2025 vs $16.2B in Q1 2024.
- $2.75B in new senior notes issued in 2025 to fund Commonwealth acquisition and strengthen capital structure.
HDFC Bank HDB
Egerton Capital bought $72.83M of HDFC Bank in Q4 2024. HDFC Bank demonstrated robust growth in Q1 FY25, with 35.3% year-over-year net profit growth to ₹161.7 billion, driven by merger synergies and strong deposit expansion. The bank's 26.4% increase in net interest income to ₹298.4 billion reflects improved lending margins, while total deposits grew 24.4% to ₹23.79 trillion, outpacing industry averages. Recent performance shows acceleration from Q4 FY24, where net profit grew 33.2% sequentially.
- 52.5% year-over-year growth in total advances to ₹35.67 trillion, fueled by retail and corporate banking segments.
- 19.3% capital adequacy ratio remains well above regulatory requirements, supporting future growth initiatives.
- Gross NPAs improved to 1.33% from 1.41% in Q4 FY24, demonstrating asset quality strength.
Howard Hughes HHH
Egerton Capital bought $34.15M of Howard Hughes in Q4 2024. Howard Hughes Holdings Inc. (HHH) reported a significant turnaround in Q1 2025, with net income swinging to $10.8 million from a $21 million loss in the prior-year period, driven by a 27.4% YoY revenue increase to $199.3 million. The company's strategic land sales, including 70 residential acres at $991k per acre, and 27 contracted condo units in Ward Village underscore its growth momentum. A major catalyst was Pershing Square Capital Management's purchase of 9 million shares at $100 per share, a 48% premium, signaling strong institutional confidence.
- EPS improved 150% to $0.21 from -$0.42 in Q1 2024.
- 27.4% revenue growth YoY, driven by $71.6 million in MPC land sales.
- Pershing Square acquired 9 million shares at a 48% premium, injecting $900 million in capital.
Holdings at the end of Q4 2024
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| MSFT | Microsoft | 9.3% | Added (+2%) | $741M |
| AMZN | Amazon | 6.7% | Trimmed (-22%) | $528.32M |
| CP | Canadian Pacific Kansas City | 6.5% | Trimmed (-10%) | $512.14M |
| PDYPF | Flutter Entertainment | 6.1% | Added (+3%) | $485.21M |
| FI | Fiserv | 6.0% | Trimmed (-10%) | $477.52M |
| META | Meta | 5.9% | Trimmed (-22%) | $469.25M |
| GE | General Electric | 5.1% | Added (+23%) | $401.06M |
| CRH | CRH | 5.1% | Trimmed (-2%) | $400.51M |
| ACGL | Arch Capital Group | 4.6% | Added (+26%) | $368.29M |
| GEHC | GE Healthcare | 4.5% | Trimmed (-20%) | $357.47M |
| IBKR | Interactive Brokers Group | 4.1% | Trimmed (-45%) | $326.52M |
| RNR | RenaissanceRe | 4.1% | Trimmed (-32%) | $322.12M |
| GOOG | Alphabet | 3.6% | Trimmed (-55%) | $281.76M |
| COF | Capital One | 3.5% | NEW | $279.16M |
| V | Visa | 3.4% | Trimmed (-27%) | $272.7M |
| CME | CME Group | 2.8% | NEW | $223.97M |
| LLY | Eli Lilly | 2.7% | NEW | $216.92M |
| FCNCA | First Citizens Bancshares | 2.7% | Trimmed (-59%) | $216.62M |
| MA | Mastercard | 2.6% | Trimmed (-39%) | $204.69M |
| IBN | ICICI Bank | 2.4% | Added (+61%) | $190.68M |
| ERJ | Embraer | 1.7% | Trimmed (-2%) | $133.31M |
| LAD | Lithia Motors | 1.4% | NEW | $113.25M |
| ICE | Intercontinental Exchange | 1.4% | NEW | $109.27M |
| LPLA | LPL Financial | 1.1% | NEW | $84.14M |
| HDB | HDFC Bank | 0.9% | NEW | $72.83M |
| BKNG | Booking Holdings | 0.8% | Trimmed (-81%) | $60.79M |
| MLM | Martin Marietta | 0.5% | Trimmed (-60%) | $42.5M |
| HHH | Howard Hughes | 0.4% | NEW | $34.15M |
| UBER | Uber | 0.0% | Exited | $0 |
| GEV | GE Vernova | 0.0% | Exited | $0 |
| HLT | Hilton | 0.0% | Exited | $0 |
| FSLR | First Solar | 0.0% | Exited | $0 |
| VRTX | Vertex Pharmaceuticals | 0.0% | Exited | $0 |
| AAPL | Apple | 0.0% | Exited | $0 |
| CB | Chubb | 0.0% | Exited | $0 |
| SN | SharkNinja | 0.0% | Exited | $0 |
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