U.S. Large Cap

Walt Disney Co. (3%)

Walt Disney was founded October 16, 1923 by Walt and Roy Disney. Disney is an American multinational mass media and entertainment conglomerate. Disney is currently the world’s second largest media conglomerate in terms of revenue, only trailing Comcast. Walt Disney studios is of the largest and best known studios in American cinema. Disney has also expanded into Walt Disney Parks and resorts, Disney Media Networks and Disney Consumer Products. Disney owns and licenses 14 theme parks around the world. Disney also owns and operates television networks such as ABC, Disney, ESPN, A+E Networks.  

ManagementWe have every reason to believe that the future of Disney is in very good hands. It is important to note that all of the top management at Disney have been with the company for over ten years. According to Fact Set, the average tenure of management is 16 years. The current management team is focused on provided long-term growth to its shareholders. On the surface, it appears that Disney seems to promote from within due to their unique culture and business model. Robert Iger, current CEO of Disney, has been with the company since 1999. Robert Iger has been the CEO of Disney since 2005.  


Bank of America (3%)

Bank of America Corp. (BAC) is a bank and financial holding company, which engages in the provision of banking and nonbank financial services. It operates through the following segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, Global Markets, and All Other. The company was founded by Amadeo Peter Giannini in 1904 and is headquartered in Charlotte, NC (Factset). It serves consumers, businesses, and private investors. With over 209,000 employees, over 4,600 branch locations, and $2.18 trillion in assets, Bank of America is the world’s 9th largest bank.

Management. Over the past 10 years, Bank of America has completely changed their infrastructure. They began to emphasize simplification, efficiency, and risk reduction, and the dividends are starting to show. It took the international bank this amount of time to fix errors made during the financial crisis of the late 2000s, but with the emphasis on risk reduction, it seems as though the corner is being turned. Consumer loans are now made largely to customers with average FICO scores over 750. Their focus has shifted to small businesses, and the positive results of that are being seen.



The Home Depot (3%)

Home Depot, Inc. was founded in 1978 and is headquartered in Atlanta, GA. Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. It operates The Home Depot stores, which provides full-service, warehouse-style stores that sells a wide assortment of building materials, home improvement products and lawn and garden products and provide a number of services. The company offers national installation services through pre-screened independent contractors for products ranging from floors to roofs, windows to water heaters, and kitchen cabinets to vinyl siding.

ManagementThe management team at Home Depot has experienced very low turnover. Craig Menear (CEO) and Carol Tome (CFO) have been with the company for over 20 years. Craig Menaer took over as CEO in 2014. Before Menear took over as CEO, Home Depot was heavily criticized for its lavish executive compensation that focused on short term gains rather than the longevity of the Home Depot. Since then, Home Depot has scaled back their executive compensation in order to promote long term growth for Home Depot. Experts believe that the new executive compensation plan is well explained and closely aligns with interests of shareholders and management. It is also important to note that Home Depot has nine high level executives that have been with the company for at least 15 years. This leads to the average tenure being 18 years for the management team. In comparison, Lowe’s (Home Depot’s biggest competitor) has an average executive tenure of 11 years.


Medtronic (3%)

Medtronic was founded in 1949 and is a global leader in medical technology, services, and solutions. The Company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. Medtronic’s subsidiaries include Medtronic, Inc. and HeartWare International, Inc. The company has a market cap of $107.2 billion and is currently sitting at $80.47/share as of April 17, 2018. The company’s main competitors include Johnson & Johnson as well as Abbott Laboratories.

Management. Medtronic is run by an executive leadership team that has made some solid capital-allocation decisions. However, they have made some mistakes when it comes to acquisitions. Just like every other major medical device company, Medtronic makes regular acquisitions of smaller companies that have emerging technology. However, these purchases have been typically weakened in the short term due to the technology still needing more development until it can reach commercialization.


Boeing (3%)

The Boeing Co. (BA) is an aerospace company, which engages in the manufacture of commercial jetliners and defense, space and security systems. It operates through the following segments: Commercial Airplanes; Defense, Space and Security; Global Services; and Boeing Capital.

Management: Boeing’s board of directors and management contains 33 members. Its members average tenure is 12 years showing strong loyalty and experience with the company. These insiders own 0.113% of BA shares. Boeing’s CEO is Dennis Muilenburg. He has been with the company for an impressive 33 years. He was previous the CEO of Boeing’s defense, space, and security segment. Muilenburg is a top 5 share holder of BA holding 0.024% of shares.


Verizon (3%)

Verizon Communications Inc. (VZ) is headquartered in New York, New York and was founded on June 30, 2000.   The company provides wireless communications products and services. They have product offerings in both the Wireless and the Wireline market segments; approximately 74% of their total business comes from the Wireless segment while the other 26% comes from the Wireline segment. The Wireless segment includes offerings of voice and data services. The Wireline segment includes data center and cloud services, broadband video and data, corporate networking solutions, and numerous other items. The majority of Verizon’s target market involves consumers within the United States, although foreign groups utilize some of their Wireline services.  Customers include businesses, governments, and individual consumers. Verizon attempts to be a premium provider with extensive coverage They consistently communicate this goal to consumers through various advertising strategies and by consistently providing the quality services that they promise.

Management: Verizon has maintained a solid team of executives for a number of years. On August 1, 2018, Hans Vestberg took over as the Chief Executive Officer of Verizon. Vestberg was formerly the Chief Technology Officer at Verizon and the CEO of a Swedish telecommunications company before that. Most consider him to have thorough knowledge of the industry and an ability to grow Verizon. He is poised to take Verizon to the next level as new technologies arise. The previous CEO was Lowell McAdam. McAdam worked for at Verizon for over 15 years and helped build the company into the industry leader that it is presently. His departure was a simple matter of retirement.


Recent Purchases:

  • SRC Energy Inc (1.5%)

  • AAR Corp (1.5%)

  • Xcel Energy (3%)

  • Standex International (1.5%)

  • Salesforce.com (1.5%)


Gentherm (3%)

Gentherm, Inc. (THRM) engages in the design, development, manufacture, and marketing of heating, cooling, and ventilating devices. It operates through the following business segments: Automotive, Industrial, and Reconciling Items. The Automotive segment designs, develops, produces, and sells automotive seat comfort systems, specialized automotive cable systems, and automotive and non-automotive thermal convenience products. The Industrial segment includes global power technologies business, and research and development division. The Reconciling Items segment comprises of corporate selling, general and administrative costs, and acquisition transaction costs. The company was founded by Lon E. Bell in 1991 and is headquartered in Northville, MI.

Management: Management within Gentherm has consistently seen a fair amount of turnover in the C-Suite. Out of the 18 members that make up the management teams, only three have been with t he company for more than ten years. This can be viewed as a pro in the fact that all of this outside influence will bring in new perspectives, but a con in the fact that only a few members truly know the history of Gentherm and how it has been managed and where it needs to go from here. Phillip Eyler has been their CEO since December of 2017, while Francois Castaing has been the president of the board since 2001. Castaing was in charge of selecting the new head of the company which gives ease to concerns about the new leadership. This long-standing figure at Gentherm heads the decision-making process which allows for Gentherm to grow into the future and hopefully lead to further success. Eyler has brought in a few outside members to join his team to bring in a new point of view and try and make key changes that will allow Gentherm to continue to grow.


Goldman Sachs Group Inc. (3%)

Goldman Sachs is one of the leading investment banking, investment management and securities. Providing a range of financial services to a diversified client base that includes individuals, government, financial institutions and corporations. Goldman Sachs has offices in over 30 countries and is an active participant in financial markets around the world. They provide a range of investment banking services to a diverse group of consumers. Services include strategic advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs and risk management, and debt and equity underwriting of public offerings and private placements. they facilitate client transactions and make markets in fixed income, equity, currency and commodity products, primarily with institutional clients such as corporations, financial institutions, investment funds and governments. They invest in and originate loans to provide financing to clients. These investments and loans are typically longer-term in nature. They provide investment management services and offer investment products (primarily through separately managed accounts and commingled vehicles, such as mutual funds and private investment funds) across all major asset classes to a diverse set of institutional and individual clients.

Management:Currently there are two pending management changes. Stephen M. Scherr, 54, has been appointed Executive Vice President and Chief Financial Officer of the Registrant, effective November 5, 2018. Lloyd C. Blankfein, currently Chairman and Chief Executive Officer of The Goldman Sachs Group, Inc. (the Registrant or Goldman Sachs), will retire as Chief Executive Officer effective September 30, 2018. He will remain employed as Chairman of the Goldman Sachs Board of Directors (the Board) until December 31, 2018. Mr. Blankfein will accept the title of Senior Chairman after his retirement from the Registrant and the Board.

  • TJX (3%)

The TJX Cos., Inc. engages in the retail of off-price apparel and home fashion products. It operates through the following segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The Marmaxx segment sells family apparel including footwear and accessories; and home fashions including home basics, decorative accessories, giftware, and other merchandise. The HomeGoods segment offers an assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware as well as expanded pet, kids and gourmet food departments. The TJX Canada segment operates the Winners, Marshalls, and HomeSense chains in Canada. The TJX International segment includes the T.K. Maxx and HomeSense chains in Europe, and T.K. Maxx chain in Australia. The company was founded by Stanley Harris Feldberg and Sumner L. Feldberg in 1956 and is headquartered in Framingham, MA.

Management: The management team at TJX has 12 members with an average tenure of 25 years, showing that they are both familiar and experienced with the company and the industry. The Chief Executive Officer Ernie L. Herman has been with the company 30 years and has been leading as CEO since January 31st of 2016. The Board of Directors is made up of 11 members, 9 of which are independent, and they have a tenure of 11 years. The current Insider ownership of the management team is .097% and the board owns .113%. The team is focusing on continuing to provide capital gains to their investors both in the short and long term.