Analyzing KLS Advisors' Q1 and Q2 2019 13F Filings: Changes in Holdings and Significance

KLS Professional Advisors Group, LLC is a well-known investment management company operating with an aim of generating strong returns for its clients. In order to achieve this objective, the company continuously evaluates the performance of the assets it holds and makes necessary adjustments from time to time. One way they do this is through 13F filings, which we will cover in this blog post.

A 13F filing is a quarterly report that institutional investment managers must submit to the Securities and Exchange Commission (SEC). It provides information about the investment manager's holdings in public companies and is useful for investors who want to track the performance of the company's portfolios. In this post, we will be analyzing KLS Professional Advisors' Q1 2019 and Q2 2019 13F filings to identify the changes in holdings of the fund and their significance.

The first stock in the list, BIL, is an ETF that tracks the Barclays 1-3 Month US Treasury Bill Index. The fund increased its holdings in BIL by 0.7%, from 8,938,132 shares in Q1 2019 to 8,997,175 shares in Q2 2019. The value also increased slightly, from $818,733,000 to $824,231,000. While this may not seem like a significant change, it is important to remember that conservative investments like BIL are often used as a hedge against market volatility.

Moving on to the next stock on the list, ITOT or the iShares Core S&P Total US Stock Market ETF, we see a massive increase in the number of shares held by the fund. In Q1 2019, KLS Professional Advisors held 2,374,642 shares, which increased to 6,674,396 shares in Q2 2019, representing a 190.8% increase. The value of the holdings also increased from $152,927,000 to $444,715,000. This is a significant change and indicates that the fund has shifted its focus towards the US stock market.

Another interesting stock in the portfolio is IWD or the iShares Russell 1000 Value ETF. The fund's holdings in IWD increased by 3.1%, from 2,297,083 shares to 2,299,597 shares. The value of the holdings also increased from $283,667,000 to $292,555,000. The Russell 1000 Value Index is composed of large-cap US stocks that have a value or "low risk" tilt. The index is designed to provide exposure to the value factor, which has historically outperformed the broader market over the long term. This suggests that KLS Professional Advisors is bullish on the value factor in the current market.

Moving on to one of the most popular stocks in the world, SPY or the SPDR S&P 500 ETF, the fund decreased its holdings by 2.5%, from 689,159 shares to 681,325 shares. However, the value of the holdings increased from $194,674,000 to $199,628,000. This is an interesting development since the S&P 500 has been posting strong returns in recent years. It could be that KLS Professional Advisors is trying to reduce its exposure to US equities, or it could be a mere adjustment in the portfolio to manage risk.

Another ETF in the portfolio is IVV or the iShares S&P 500 Index ETF. The fund increased its holdings in IVV by 7%, from 550,104 shares to 568,205 shares. The value of the holdings also increased significantly from $156,538,000 to $167,479,000. This suggests that KLS Professional Advisors is still bullish on the US market despite reducing their exposure to SPY.

MDY, or the SPDR S&P MidCap 400 ETF, was another stock that saw a slight decrease in the number of shares held by the fund, from 347,178 shares to 343,745 shares (1.6% decrease). However, the value of the holdings increased slightly from $119,915,000 to $121,889,000. It is worth noting that mid-cap stocks are often seen as a good balance between risk and potential returns.

Further down the list, we see the fund's holdings in VTV or the Vanguard Value ETF decreased by 6.3%, from 5,313 shares to 4,835 shares. Meanwhile, the value of these holdings decreased from $572,000 to $536,000. The ETF tracks the performance of large-cap US value stocks, and the fund's decrease in holdings may indicate that they are less confident in the performance of the US value stocks.

In conclusion, KLS Professional Advisors Group, LLC is a highly regarded investment management company constantly evaluating its holdings to generate strong returns for its clients. By analyzing its Q1 2019 and Q2 2019 13F filings, we can see that the fund is still bullish on the US market; however, it seems to be adjusting its portfolio to manage risk and maximize potential returns. Overall, investors can use 13F filings as a valuable tool to identify changes in institutional holdings and evaluate their potential impact on the portfolio.