PENCE Capital Appreciation

The Pence Capital Appreciation portfolio seeks long-term growth of capital. It aims to achieve this objective through a portfolio consisting of a minimum allocation of 80% US domestic companies and a maximum of 20% to foreign equities. These companies are relevant to Pence’s investment theme of disruptive technologies and puts consumer behavior at the center of the process. The portfolio aims to achieve long-term capital appreciation by identifying and investing in companies that demonstrate robust financial health, innovative capabilities, and competitive advantages.

Investment Process

  • Pence’s investment process begins with looking at Big Knowable Themes from changing consumer behavior to technological innovations.
  • It seeks to identify businesses that will likely grow their market share as the economy evolves.
  • The portfolio utilizes between 40 and 60 individual companies varying from 1% to 7% weighting with market cap over $10 billion and projected sales over $1 billion.
  • The portfolio has two components: Growth and Value.
  • Growth component can vary from 50% to 100% of the portfolio and consists of companies that focus on their top line growth in a double-digit rate.
  • Value component can vary from 0% to 50% of the portfolio and consists of companies that focus on their bottom line growth at a consistent pace.
  • Standard allocations in this composite are generally up to 100% equity and up to 2% cash.

Asset Allocation

As of 12/31/2024

Gross Returns

As of Dec 31, 2024

Top Holdings

Name
Portfolio %
Nvidia
5.52
Tesla
4.95
Amazon
4.93
Alphabet
4.68
Microsoft
4.62
Apple
4.40
Meta
4.05
MercadoLibre
3.65
Broadcom
3.19
Netflix
3.03

Characteristics

Portfolio
Standard Deviation % (260d)
15.92
Weighted Average Mkt Cap ($B)
1,046
Median Market Cap ($B)
252
% Top 10 Holdings
43.02
Dividend Yield %
1.15
Price/Earning (12mo Trailing)
36.16
Price/Earning (12mo Forward)
26.93
Price/Book
9.23
Price/Sales (12mo Trailing)
5.07
Price/Cash Flow (12mo Trailing)
24.80
Debt/Equity Ratio %
72.88
Total Holdings
51
Long-term Earnings Growth (%)
21.10
Long-term Sales Growth (%)
13.62

% of Portfolio in Cap Range

Portfolio %
> $50 Billion
97.02
$10-50 Billion
0.83
<$10 Billion
0.0

S&P/ MSCI GICS

Sectors
Portfolio %
Information Technology
42.21
Consumer Discretionary
18.71
Communication Services
14.08
Consumer Staples
7.16
Financials
7.09
Healthcare
6.02
Industrials
4.74

As of 12/31/2024

Disclosure

The following composite benchmark is used for the Aggressive Growth Model

57% – S&P 500 INDEX
19% – Russell 2000 Index
12% – MSCI EAFE Net Total Return Index
7% – MSCI Emerging Markets Net Total Return Index
5% – FTSE 3 Month Treasury Bill

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Strategies

Our investment strategies seek to capitalize on thematic, long-term investment trends built on a close study of human behavior.
Ubiquitous Strategy
Ubiquitous Strategy Finds investment opportunity in stocks of “ubiquitous” companies—those whose services have become part of our daily lives and whose position at the choke point in the supply chain gives them pricing power.
Content Leaders Strategy
Content Leaders Strategy Seeks above-average capital appreciation by investing in stocks of U.S. companies that are dominant in the media content arena, including television producers, filmmakers, content libraries, broadcast channels and delivery platforms.
Digital World Leaders Strategy
Digital World Leaders Strategy Finds mega-platform providers that have the resources to evolve, transform, and acquire as technology advances and consumer demand shifts.
Building America Strategy
Building America Strategy Invests in stocks of companies that can benefit from “Building America” through infrastructure projects including civil construction and engineering, and the sale of construction materials.
Human Behavior Strategy
Human Behavior Strategy Focuses on companies that derive the majority of their revenue through sales to U.S. consumers, fulfilling the different levels of human need in a variety of income categories.
PENCE Transformers Index (Ticker: TRFM)
PENCE Transformers Index (Ticker: TRFM) Seeks above-average total return by investing in stocks of global companies that benefit from shifts in consumer behavior and technological innovation.

How to invest

Pence Capital Management develops investment strategies for distributors and model portfolios for advisors. To invest in Pence Capital Management Strategies, please contact your broker or advisor.

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