A Closer Look at Verition Fund Management LLC's Q3 2022 vs. Q4 2022 13F Holdings

Verition Fund Management LLC has just released its Q4 2022 13F Holdings, and the data shows significant changes in the fund's holdings from Q3 2022. In this blog post, we will dive into the details of the report to analyze the changes and understand what they mean for Verition Fund Management LLC.

Introduction

Verition is a hedge fund based in Greenwich, Connecticut, founded in 2014 by Nicholas Maounis. The fund's investment strategy revolves around quantitative research and analysis, with a focus on statistical modeling, machine learning, and big data.

Verition's Q4 2022 13F Holdings report discloses the fund's long equity positions as of December 31, 2022. The report compares these holdings to Verition's Q3 2022 holdings, providing insights into the fund's investment decisions during the period.

Main Body

Verition's Q4 2022 13F Holdings report shows that the fund has added 13 new positions and sold out of 10 positions from its Q3 2022 holdings. The total value of Verition's long equity positions has also increased from $1.44 billion in Q3 2022 to $1.68 billion in Q4 2022, representing a growth of 16.7%.

One of the most notable changes in Verition's holdings is its increased position in Apple Inc (AAPL). Verition added 276,300 shares of AAPL during the period, a growth of 54%. The value of the fund's AAPL position also increased from $70.7 million to $102.4 million, an increase of 44.8%. The fund also bought call options for NRG Energy Inc (NRG) and Vistra Corp (VST) during the period, indicating bullish sentiments towards the companies.

On the other hand, Verition sold out of its position in PG&E Corp (PCG), which was valued at $69.1 million in Q3 2022. The fund also sold out of its position in QQQ Put Options (QQQ), which was valued at $64.9 million in Q3 2022, indicating a bearish outlook towards the Invesco QQQ Trust.

The data also shows that Verition added to its position in Dexcom Inc (DXCM) and MongoDB Inc (MDB). The fund's position in Dexcom increased by 23.28%, while its position in MongoDB grew by 14.34%. Both companies are leaders in their respective industries, with Dexcom providing continuous glucose monitoring systems, and MongoDB offering a modern, general-purpose database platform.

Verition's Q4 2022 13F Holdings also show a notable increase in the fund's positions in ETFs. Verition added to its position in iShares 20+ Year Treasury Bond ETF (TLT), with the fund holding call options as well as put options for the ETF. The fund also increased its position in SPDR S&P 500 ETF Trust (SPY), though it sold out of its position in SPY put options. The data suggests that Verition is bullish on the long-term debt market and the overall US equity market.

Conclusion

Verition Fund Management LLC's Q4 2022 13F Holdings report suggests that the fund is bullish on tech giants like Apple Inc and leaders in emerging industries like Dexcom Inc and MongoDB Inc. The data also shows that the fund holds a positive outlook for the US equity market and long-term debt market, as suggested by its increased holding in ETFs like iShares 20+ Year Treasury Bond ETF and SPDR S&P 500 ETF Trust.

However, the data also suggests that the fund is bearish on companies like PG&E Corp and the Invesco QQQ Trust, as it sold out of its positions in them during the period. While this may be concerning for some investors, it is essential to remember that hedge funds like Verition have specific investment strategies that may differ significantly from those of other investors.

In conclusion, investors should not base their investment decisions solely on Verition's Q4 2022 13F Holdings report. Instead, investors should do comprehensive research and analysis of the companies they are interested in investing and consider their own investment strategies before making any investment decisions.