Analyzing Paradice Investment Management LLC Q3 2022 vs. Q4 2022 Portfolio Shifts

Paradice Investment Management LLC recently released its Q3 2022 and Q4 2022 13F filings, revealing a series of impactful portfolio changes. From ITT Inc to Novanta Inc, the investment firm has made strategic holdings adjustments geared towards maximizing profits and minimizing risks. In this article, we'll analyze these significant changes in holdings in detail and explore what they could mean for Paradice Investment Management.

The Biggest Gains

Univar Solutions Inc saw the most substantial gains in holdings, with a 38.7% increase from 2,501,424 shares in Q3 2022 to 2,481,599 shares in Q4 2022. The value of the shares also increased from $56,882,000 to $78,914,000. The chemical distribution company's impressive financial performance in the past year could have contributed to the holdings growth. In Q3 2021, Univar Solutions saw a year-over-year increase in revenue of 13.3%.

ChampionX Corporation followed closely in gains, with shares totaling 2,621,899 in Q3 2022 and 2,377,190 in Q4 2022, a 34.3% change. The value of the holdings increased from $51,311,000 in Q3 to $68,914,000 in Q4. ChampionX is a global provider of specialty chemicals and other oilfield products. The company's strong growth over the past year, with revenue increasing by 34% year-over-year in Q1 2022, could have influenced the portfolio changes.

The Largest Reductions

EnPro Industries Inc saw the largest reduction in holdings, with the number of shares plummeting from 470,647 in Q3 2022 to 316,563 in Q4 2022, indicating a decline of 32.8%. The value of shares also decreased by $5,589,000, from $39,996,000 in Q3 to $34,407,000 in Q4. EnPro is a diversified industrial technology company with operations in the U.S and Europe. The decline in share value could be attributed to reduced earnings as seen in the company's Q3 2022 report.

Other significant holdings reductions include Orthofix Medical Inc, with a 7.4% decline from 967,148 shares to 896,148 shares, and Lincoln Educational Services Corporation, where shares decreased by 37.5% from 293,682 to 172,431.

The New Entries

Although Paradice Investment Management did not make significant additions to its portfolio in Q4 2022, it made notable entries into four different companies. Advent Technologies Holdings Inc., a hydrogen fuel cell manufacturing company, entered the portfolio with 12,700 shares valued at $22,000. YanDex N V, a Russian technology company that develops online search engines, also appeared, with shares totaling 19,791 valued at $0.

Other new entries include Nvent Electric PLC, an electrical equipment manufacturing company, and Stantec Inc., a Canadian engineering consulting firm. Nvent Electric entered the portfolio with 8,167 shares, valued at $314,000, while Stantec Inc. had 6,452 shares, valued at $308,000 in the portfolio.

Conclusion

Paradice Investment Management's Q4 2022 portfolio changes show a continued commitment to investment principles aimed at driving growth and reducing risks. While the firm's concentration on chemical companies such as Univar and ChampionX largely contributed to the gains, the reduction in shares of companies such as EnPro and Lincoln Educational Services indicates a possible shift away from particular industries. Only time will tell if these portfolio adjustments will yield profitable returns. Nonetheless, they show the tactical nature of investing in today's stock market.