John Armitage - Egerton Capital Portfolio Q2'2025: Top Holdings & Recent Changes
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John Armitage, founder and Chief Investment Officer of Egerton Capital, continues to demonstrate why his London-based hedge fund is closely watched by global investors. His Q2 2025 portfolio—valued at nearly $9.75 billion—reflects a disciplined, concentrated approach, with the top 10 positions accounting for 59.8% of assets. Armitage’s latest moves reveal a nuanced balance between adding to high-conviction growth names and trimming exposure in response to shifting valuations, all while maintaining a portfolio of just 25 positions—down two from the prior quarter.
Portfolio Overview: Focused Growth with Active Rotation
Portfolio Highlights (Q2 2025): - Market Value: $9,747.4 million - Top 10 Holdings: 59.8% of portfolio - Portfolio Size: 25 positions (-2 from prior quarter) - Average Holding Period: 9 quarters - Turnover: 40.0%
Egerton Capital’s portfolio remains tightly concentrated, with a clear preference for businesses demonstrating durable growth, strong competitive advantages, and robust cash flow generation. The fund’s turnover rate of 40% signals active management, as Armitage is not afraid to rotate capital into new opportunities or reduce exposure to names that have appreciated significantly. This approach has historically allowed Egerton to capitalize on both secular growth trends and shorter-term dislocations in the market.
The portfolio’s average holding period of over two years suggests a patient, but not dogmatic, investment style—willing to hold winners for multiple years, yet agile enough to adapt when fundamentals or valuations shift. This quarter, the fund added meaningfully to several positions while trimming others, reflecting a dynamic response to evolving market conditions.
Top Holdings Analysis: Growth Anchors and New Conviction Plays
The portfolio is anchored by a mix of global technology leaders and select financial and industrial names. Microsoft Corporation (MSFT) saw a substantial 38.8% increase in position size, now representing 9.4% of the portfolio, as Armitage doubled down on the software giant’s cloud and AI leadership. In contrast, Amazon.com, Inc. (AMZN) was reduced by 20.95%, though it remains a top-three holding at 7.5% of assets, likely reflecting profit-taking after a strong run.
PROGRESSIVE CORP 7.2% and Visa Inc. (V) 7.0% round out the core of the portfolio, with Progressive trimmed slightly by 5.07% and Visa nearly doubled +99.2%, signaling heightened conviction in the payments network’s long-term growth prospects. Carpenter Technology Corporation (CRS) 5.4% and Ferguson plc (FERG) 5.0% were both added to, with Ferguson being a new buy this quarter, highlighting Armitage’s willingness to initiate positions in companies with strong industrial fundamentals.
Financials also feature prominently, with CAPITAL ONE FINANCIAL CORP 5.1% and INTERACTIVE BROKERS GROUP 4.6% seeing dramatic increases in position size—Capital One up 161.7% and Interactive Brokers up 339.3%—suggesting a bullish view on select financial services firms. CME GROUP INC 4.3% was reduced by 11.98%, possibly due to valuation concerns or sector rotation.
Beyond the top 10, CRH plc (CRH) 4.3% was increased by 8.02%, further diversifying the portfolio’s exposure to global industrials and materials. This mix of technology, financials, and industrials underscores Armitage’s focus on companies with scalable business models, pricing power, and the ability to compound earnings over time.
What the Portfolio Reveals About Current Strategy
- Growth at a Reasonable Price: Egerton’s portfolio is tilted toward companies with above-average growth prospects, but not at any price. The fund’s active trimming of Amazon and CME Group, alongside new buys and adds in Visa, Carpenter Tech, and Ferguson, suggests a disciplined approach to valuation.
- Sector Agnostic, Quality Focused: While technology and financials dominate, the presence of industrials and materials (Carpenter Tech, Ferguson, CRH) shows a willingness to look beyond sector labels for quality businesses.
- Concentration with Conviction: Nearly 60% of assets in the top 10 names demonstrates high conviction, but the portfolio is not overly concentrated in a single sector or theme, providing some diversification.
- Active Management: The 40% turnover rate and multiple large position changes indicate that Armitage is not a passive holder, but rather seeks to capitalize on both long-term trends and shorter-term opportunities.
- Global Perspective: With holdings in US, UK, and European companies, the portfolio reflects a global investment mandate, seeking the best opportunities regardless of geography.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Microsoft Corporation (MSFT) | $917.3M | 9.4% | Add 38.80% |
| Amazon.com, Inc. (AMZN) | $732.2M | 7.5% | Reduce 20.95% |
| PROGRESSIVE CORP | $704.0M | 7.2% | Reduce 5.07% |
| Visa Inc. (V) | $678.3M | 7.0% | Add 99.20% |
| Carpenter Technology Corp (CRS) | $527.6M | 5.4% | Add 4.90% |
| CAPITAL ONE FINL CORP | $496.5M | 5.1% | Add 161.72% |
| Ferguson plc (FERG) | $486.3M | 5.0% | Buy |
| INTERACTIVE BROKERS GROUP | $446.4M | 4.6% | Add 339.31% |
| CME GROUP INC | $419.8M | 4.3% | Reduce 11.98% |
The concentration in the top 10 is striking, with no single position exceeding 10% of the portfolio, but the top three (Microsoft, Amazon, Progressive) accounting for nearly a quarter of assets. This balance allows for meaningful exposure to high-conviction ideas without excessive single-stock risk. The active rotation—adding to Microsoft, Visa, Carpenter Tech, Capital One, and Interactive Brokers while trimming Amazon, Progressive, and CME Group—shows a dynamic approach to portfolio construction, always seeking to optimize the risk/reward profile.
Investment Lessons from John Armitage’s Egerton Capital
- Concentration with Discipline: Armitage demonstrates that concentrated portfolios can outperform, but only when each position is backed by deep research and ongoing reassessment.
- Valuation Matters, Even for Growth: The willingness to trim winners like Amazon and CME Group, while adding to Visa and Microsoft, shows that even growth investors must pay attention to price.
- Active Management Can Add Value: High turnover is not inherently bad if it reflects thoughtful capital allocation and responsiveness to changing fundamentals.
- Global Opportunity Set: By looking beyond home markets, investors can access a broader range of high-quality businesses and avoid home-country bias.
- Patience and Flexibility: The average holding period of over two years suggests patience, but the active changes show flexibility when new information or opportunities arise.
Looking Ahead: What Comes Next for Egerton Capital?
With nearly $10 billion in assets and a portfolio that’s both concentrated and actively managed, Egerton Capital is well-positioned to capitalize on emerging opportunities. The fund’s cash position and ongoing portfolio turnover suggest Armitage is ready to deploy capital into new ideas as they arise. Given the current mix, further additions to technology, financials, or select industrials seem plausible, especially if market volatility creates attractive entry points.
Investors tracking Egerton’s moves should watch for continued shifts in sector allocation, new position initiations, and further trimming of names that have appreciated significantly. The fund’s global perspective and focus on quality growth at reasonable valuations remain its defining characteristics.
FAQ about John Armitage’s Egerton Capital Portfolio
Q: Why did Egerton Capital reduce its Amazon position?
A: While Amazon remains a top holding, the 20.95% reduction likely reflects profit-taking after strong performance and a reassessment of valuation relative to growth prospects. Active managers like Armitage often trim winners to manage risk and recycle capital into new opportunities.
Q: What explains the large increase in Visa and Interactive Brokers?
A: The near-doubling of the Visa position and the more than tripling of Interactive Brokers suggest heightened conviction in these companies’ long-term growth and competitive positioning. Both firms benefit from scalable, asset-light business models and strong cash flow generation.
Q: How concentrated is Egerton’s portfolio, and is that risky?
A: The top 10 holdings account for 59.8% of the portfolio, which is highly concentrated by traditional standards. However, this approach can enhance returns if the manager has high conviction and deep knowledge of each business. Risk is managed through ongoing monitoring and active position sizing.
Q: How can I track Egerton Capital’s portfolio changes in real time?
A: 13F filings are reported quarterly with a 45-day lag, so the most current public data is always slightly delayed. Platforms like ValueSense provide tools to analyze and track superinvestor portfolios, including Egerton Capital, with detailed analytics and visualization.
Q: Does Egerton Capital pay dividends or focus on growth?
A: While some holdings (like Visa and Microsoft) do pay dividends, the primary focus appears to be on companies with strong growth prospects and the ability to compound capital over time. Dividend yield is not a central screen, but cash flow generation and reinvestment potential are key.
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