Broadmark Asset Management LLC Q4 2022 vs. Q1 2023 13F Holdings Comparison

Broadmark Asset Management LLC, a Pacific Northwest-based real estate investment management firm, recently released its Q1 2023 13F holdings report, revealing a significant shift in its asset allocations. The report shows a considerable move away from traditional stocks and increasingly towards real estate. This article will break down the changes in holdings and the implications they have for the company's future.

The report shows that Broadmark Asset Management LLC has withdrawn its entire holdings from five different ETFs in Q1 2023. The largest ETF holdings the company withdrew from were the 'Invesco QQQ TR' (QQQ) and 'SPDR S&P 500 ETF TR' (SPY), representing a $33,199 and $32,710 value, respectively.

On the other hand, the report shows that the company has entered into a completely new market by investing in a real estate investment trust (REIT), namely, the 'iShares Residential Real Estate Capped ETF' (REZ). Broadmark Asset Management LLC has acquired over 1.5 million shares worth $61,757 in this REIT. The percentage of ownership in REZ represents 43.87% of the company’s overall reported ownership value.

Furthermore, the company has almost completely liquidated its holdings in the 'Select Sector SPDR' ETFs, including XLU, XLV, and XLP. Immediately following this move, Broadmark Asset Management LLC’s total percentage of ownership in the ETFs mentioned decreased by 100% in each ETF.

In addition, Broadmark Asset Management LLC has fully liquidated its position in the 'SPDR Dow Jones Indl Average' ETF (DIA). The company's ownership of DIA represented 100% of its stated ownership value, with a reported total value of $13,250.

The shift in holdings toward REITs is significant and represents a clear strategic focus for Broadmark Asset Management LLC. A decision to enter a market as a new player typically indicates a belief in the potential of a particular sector and a desire to be part of it. The company's substantial investment in REZ is indicative of its bullishness towards the current state of the residential real estate industry.

In conclusion, Broadmark Asset Management LLC's Q1 2023 holdings report highlights a significant shift towards real estate and away from traditional stocks. The focus on real estate, specifically the residential real estate industry, denotes a bullishness towards this sector. Although it's unclear if this change in strategy was prompted by internal factors or external market conditions, it will be interesting to track how this shift impacts the company's future growth.