Analyzing White Elm Capital, LLC's Q3-Q4 2019 13F Filings: Changes in Holdings and Portfolio Trends

Every quarter, institutional investment managers with at least $100 million in assets under management are required to disclose their holdings to the U.S. Securities and Exchange Commission in Form 13F. This information is publicly available and can provide investors with insights into the holdings and investment strategies of professional money managers. In this blog post, we will analyze the 13F holdings of White Elm Capital, LLC for Q3 2019 and Q4 2019 and summarize the changes in their portfolio.

White Elm Capital, LLC is a New York-based hedge fund that manages approximately $5.5 billion in assets. According to the 13F filings, the top holdings of the fund are Alibaba Group Holding Ltd, Alphabet Inc Class A, and Microsoft Corp. However, in this analysis, we will focus on the changes in holdings of the fund between Q3 2019 and Q4 2019.

The 13F filings show that White Elm Capital, LLC sold significant portions of its holdings in several companies during the quarter. The largest decrease in the number of shares held was in TransDigm Group Inc (TDG), a manufacturer of aircraft components. In Q3 2019, the fund held 50,161 shares of TDG worth $26.1 million, while in Q4 2019, it held only 15,900 shares worth $8.9 million, a decrease of 65.9%. Similarly, White Elm Capital, LLC reduced its holdings in Mastercard Inc (MA) by 58.6% and Visa Inc (V) by 63.4%.

The table also shows that the fund decreased its position in several other companies, including Texas Pacific Land Trust (TPL), PayPal Holdings Inc (PYPL), and Amazon.com Inc (AMZN). In some cases, such as in TradeWeb Markets Inc (TW) and Guidewire Software Inc (GWRE), the fund sold all of its shares, indicating a complete exit from these holdings.

On the other hand, there were some companies in which White Elm Capital, LLC increased its holdings during the quarter. For example, the fund increased its position in Fair Isaac Corp (FICO) by 36.3% and added 4,300 shares of Costar Group Inc (CSGP), increasing its position in the company by 127.3%. However, these increases were outweighed by the significant decreases in the fund's other holdings.

The overall trend in the fund's portfolio suggests a move away from technology and financial services companies and towards other sectors. For example, the fund invested in Advanced Drainage Systems Inc (WMS), a manufacturer of plastic drainage pipes and water management products, during the quarter. It also increased its position in Vail Resorts Inc (MTN) by 74.6%. These companies are both in the industrials sector, which may indicate the fund's pivot towards these types of companies.

It is important to note that 13F filings only provide a snapshot of a fund's holdings at a particular point in time and do not reveal the fund's full investment strategy or rationale. Therefore, it is difficult to draw conclusions about the fund's long-term investment outlook based on these filings alone.

In conclusion, the 13F filings for White Elm Capital, LLC for Q3 2019 and Q4 2019 show significant changes in the fund's holdings. The fund sold significant portions of its holdings in technology and financial services companies while increasing its exposure to other sectors such as industrials. While these changes provide valuable insights into the fund's investment strategy, it is important to consider them within the context of the overall investment goals and objectives of the fund.