Massachusetts Water Resources Authority (“MWRA”) Employees’ Retirement System
Baxter Street: Top 15 Equity Holdings
Equity Holdings
SAP
Tencent Holdings
Edenred
AIA Group
Alibaba Group¹
ASML Holding
FIS
Merck KGaA
Alcon
Melrose Industries
Shiseido
Adyen
Pernod Ricard
PerkinElmer
Taiwan Semiconductor
Median
Mkt Cap
($ in bn)
$191
$632
$11
$118
$795
$157
$91
$64
$28
$7
$23
$56
$42
$14
$388
Mkt Cap
$64
Tr
Op Mgn
25%
25%
36%
14%
21%
26%
36%
22%
13%
7%
5%
48%
27%
23%
40%
Op Mgn
25%
Tr
ROE
16%
28%
NMF
16%
22%
23%
11%
13%
NMF
NMF
8%
33%
10%
19%
28%
ROE
17%
Top 15 Baxter Street Portfolio Equity Holdings
9/30/2020
3-5-Yr Avg 2021 Est
EPS A Est
P/E
21.4
36.2
28.9
22.5
24.1
31.2
24.5
18.4
13%
20%
17%
11%
25%
19%
12%
8%
15%
8%
20%
35%
11%
14%
16%
EPS A
15%
APPENDIX
31.8
14.0
54.6
100.1
25.2
22.9
22.4
P/E
24.5
3-Yr
FCF/NI
91%
119%
137%
69%
109%
85%
70%
62%
NMF
65%
90%
NMF
75%
65%
63%
FCF/NI
75%
Company Descriptions
#1 Global developer of business enterprise resource planning software
Chinese leader in online video games (#1), social networking (#1), financial technology (#2) and cloud computing (#2)
Global B2B provider of employee benefits, fuel & fleet cards and payment services
Emerging Asia's oldest life insurer, with leading positions in 17 growth markets
#1 E-commerce company in China
#1 Global producer of lithography equipment used to manufacture semiconductors
Leading provider of outsourced processing services and software to US banks and payment-processing services to global merchants
Global provider of life science consumables, pharmaceuticals and specialty chemicals
#1 Global maker of surgical equipment and consumables for the eyecare industry
Hybrid private equity/industrial turnaround specialist
Global maker and marketer of beauty and personal care products with a focus on prestige skincare, cosmetics and fragrances
Global online and omnichannel payment processor
Producer of wines and spirits
Provider of consumables, services and equipment in the areas of human diagnostics, food/environmental safety and life sciences research
#1 Semiconductor foundry
Please note, 2021 Est P/E reflects (stock price less net cash and value of Ant Financial)/estimated annual earnings.
Op Mgn is operating margin or earnings before interest and tax as a percent of sales. Trailing operating margin has been adjusted to exclude non-cash amortization when we view it as material and not reflective of ongoing capital
requirements. The operating margin and return on equity ratios are trailing based on company financials. Average EPS A is our estimate of normalized three- to five-year EPS growth. Average EPS growth and 2021 Est P/E are based on our
internal estimates. 2021 Est P/E multiples are based on 9/30/20 equity prices. FCF/NI is all operating cash flow from the last three years, minus all cap ex, compared to adjusted net income over that time.
As of September 30, 2020. All information provided in this report is for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned. The above information represents the 15 largest equity positions, by market
value (equity swap positions are reflected as fully paid), in Baxter Street Fund, L.P. as of quarter end. Each quarter, Select Equity Group, L.P., the investment adviser to the Fund, uses the same objective, non-performance-based criteria to select the 15 largest holdings.
The securities listed above do not represent all of the securities purchased or sold for SEG's clients, and the reader should not assume that investments in the securities identified were or would be profitable.
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