Portfolio updates
CT QR Series US Equity Active UCITS ETF (QRUS)
Top 10 Underweights – 10 December 2025
Stock | Rationale |
|---|---|
1. Microsoft Corporation | Microsoft (Information Technology) has increased its capital expenditures, which have negatively impacted free cash flow yield and margins. Its price momentum has also been relatively weak. |
2. Amazon.com, Inc | Amazon (Consumer Discretionary) shows weak valuation metrics due to relatively low cash flows and higher capital expenditures. Earnings quality, particularly accruals, is also poor. |
3. Broadcom Inc | Broadcom (Information Technology) appears expensive compared to its historical levels and shows negative quality characteristics. Employee sentiment, according to publicly available information is relatively poor. |
4. Tesla Inc | Tesla (Consumer Discretionary) exhibits very weak valuation and quality measures. On valuation, it compares poorly across a wide range of metrics. As for quality, its capital allocation appears sub-optimal including its level of financing and capital expenditures. |
5. Berkshire Hathaway Inc | Berkshire Hathaway (Financials) demonstrates negative characteristics across valuation, quality, and catalyst themes. In particular, shareholder yield, earnings and sales volatility, and analyst estimate revisions are especially weak. |
6. Eli Lilly and Company | Eli Lilly (Health Care) ranks highly expensive on cash flows and sales as well as low quality. The negative quality score is mainly due to external financing through relatively high debt issuance. |
7. Johnson&Johnson | Johnson & Johnson (Health Care) shows negative quality characteristics, including high external financing through debt issuance and weak earnings quality. |
8.Walmart Inc | Walmart (Consumer Staples) appears expensive based on cash flows and earnings and has a relatively weak shareholder yield. |
9. Mastercard Inc. | Mastercard (Financials) compares poorly relative to peers on a valuation basis, particularly in relation to its earnings yield, price to book and price to sales. |
10. Netflix Inc | Netflix (Communication Services) ranks negatively on valuation and quality metrics but shows positive catalyst traits. It ranks particularly poorly by cash flow yield and price to book, amongst other deep value metrics. |
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