Analyzing Ensemble Capital Management's 13F Holdings Comparison: Q3 2022 vs. Q4 2022

Ensemble Capital Management, LLC is a California-based investment advisory firm that offers customized investment management services to individuals and institutions. One of the ways in which Ensemble Capital Management provides its clients with transparency and accountability is by filing 13F reports with the SEC every quarter. These reports disclose the firm's holdings of publicly-traded securities as of the end of the quarter.

In this blog post, we will analyze Ensemble Capital Management's 13F holdings comparison for Q3 2022 and Q4 2022. We will focus on the changes in the firm's holdings and discuss the potential reasons behind these changes.

First, let's look at Ensemble Capital Management's top five holdings for Q4 2022:

1. First Republic Bank San Francisco C (FRC): 615,318 shares worth $75,001,000

2. Alphabet Inc (GOOGL): 843,616 shares worth $74,432,000

3. Mastercard Incorporated (MA): 257,949 shares worth $89,696,000

4. Home Depot Inc (HD): 225,977 shares worth $71,377,000

5. Ferrari N.V. (RACE): 288,997 shares worth $61,908,000

Compared to Q3 2022, Ensemble Capital Management reduced its holdings in Mastercard Incorporated (MA) and Netflix Inc (NFLX) by 0.6% and 17.9%, respectively. The firm also sold all its shares of Alphabet Inc Class C (GOOG) and Texas Instruments Inc (TXN). These changes may have been driven by the firm's assessment of the companies' long-term growth prospects, financial performance, and competitive positioning in the market.

Ensemble Capital Management increased its holdings in First Republic Bank San Francisco C (FRC) and Ferrari N.V. (RACE) by 20.3% and 11.5%, respectively, in Q4 2022. The firm may have been bullish on these companies due to their strong financial performance, solid balance sheets, and potential for long-term growth.

Other notable holdings in Ensemble Capital Management's portfolio include Nike Inc (NKE), Booking Holdings Inc (BKNG), and Paychex Inc (PAYX). The firm increased its holdings in Nike Inc and Booking Holdings Inc by 18.8% and 22.2%, respectively, in Q4 2022. On the other hand, Ensemble Capital Management reduced its holdings in Paychex Inc by 37.1% during the same period.

One interesting development in Ensemble Capital Management's Q4 2022 holdings is its increased exposure to the financial sector. The firm's holdings in First Republic Bank San Francisco C (FRC) and Charles Schwab Corp (SCHW) increased by 20.3% and 547.3%, respectively. These changes may reflect Ensemble Capital Management's bullish outlook on the financial sector and its potential for growth in the coming years.

In conclusion, Ensemble Capital Management's Q4 2022 13F holdings comparison reveals several interesting trends and shifts in the firm's portfolio. The changes in the firm's holdings may have been driven by a variety of factors, such as long-term growth prospects, financial performance, and competitive positioning in the market. As with any investment portfolio, it is important to regularly assess holdings and make changes as needed to ensure that portfolio aligns with the investor's objectives, risk tolerance, and investment horizon.