Analyzing Meritage Portfolio Management Q4 2022 vs. Q1 2023 13F Holdings

Meritage Portfolio Management, a registered investment advisory firm, recently filed their 13F holdings for Q4 2022 and Q1 2023, which provides insight into their investment strategy. In this blog post, we will analyze the changes in their top holdings, identify the new additions and sell-offs, and discuss the potential reasons behind these decisions.

Top Holdings: Apple, Microsoft, and Alphabet

According to the 13F filings, Meritage's top three holdings in both Q4 2022 and Q1 2023 were Apple Inc. (AAPL), Microsoft Corp. (MSFT), and Alphabet Inc. CL A (GOOGL). However, the number of shares they held in each company decreased between the two quarters, with a 10.1% decrease in AAPL, 16.1% decrease in MSFT, and 2.0% decrease in GOOGL. Despite this, the value of their holdings in these companies increased between the two quarters, with a 14.0% increase in AAPL, 0.8% increase in MSFT, and 15.3% increase in GOOGL.

New Additions: Spdr S&P 500 Value ETF and Broadcom Ltd

Meritage added Spdr S&P 500 Value ETF (SPYV) and Broadcom Ltd (AVGO) to their portfolio in Q1 2023. SPYV had a significant increase of 74.5% in the number of shares, while AVGO only had a slight increase of 2.7%. SPYV is an ETF that tracks the performance of undervalued companies within the S&P 500, and AVGO is a semiconductor company that has seen steady growth in recent years.

Sell-Offs: Pfizer Inc and Pioneer Nat Res Co

Meritage sold their entire holdings in Pfizer Inc. (PFE) and Pioneer Nat Res Co (PXD) between Q4 2022 and Q1 2023. PFE is a pharmaceutical company that has faced challenges in recent years with drug pricing and patent expirations, while PXD is an oil and gas exploration and production company that has faced volatility due to fluctuations in oil prices.

Other Notable Changes: Mastercard Inc, UnitedHealth Group Inc, and Booking Holdings Inc.

Meritage significantly increased their holdings in Mastercard Inc (MA) and UnitedHealth Group Inc (UNH) between Q4 2022 and Q1 2023, with a 62.8% and 10.9% increase in shares, respectively. MA is a financial services company that has seen a growth in electronic payments, while UNH is one of the largest healthcare providers in the United States. Meritage also increased their holdings in Booking Holdings Inc (BKNG) by 29.5%, despite the travel industry being impacted by the COVID-19 pandemic.

Conclusion

Meritage Portfolio Management's 13F filings provide insight into their investment strategy for Q4 2022 and Q1 2023. While their top holdings remained the same, they made significant changes to their portfolio by adding SPYV and AVGO, selling off PFE and PXD, and increasing their holdings in MA, UNH, and BKNG. It's important to note that 13F filings are only required four times a year and there may be additional changes made to Meritage's portfolio throughout the year that are not included in these filings.