Changes in Holdings of a Professional Fund Manager: Analyzing SBA's Q2 2020 vs. Q3 2020 13F Holdings Comparison

In the fast-evolving world of finance, one needs to stay on top of every development to make informed decisions. The second quarter of 2020 brought unprecedented challenges for investors as the COVID-19 pandemic resulted in economic downturns worldwide. The volatility rocked the markets, leading to massive stock sell-offs and creating uncertainties for investors. However, many fund managers found ways to manage their portfolios effectively and turned chaos into opportunity. One such fund is the Secrest Blakey & Associates, LLC (SBA). In this blog post, we'll analyze SBA's Q2 2020 vs. Q3 2020 13F holdings comparison to understand the changes in their holdings during the outbreak of COVID-19.

Introduction

Secrest Blakey & Associates, LLC (SBA) is a professional investment advisory firm that provides financial planning, investment management, and consulting services to high-net-worth individuals, pension and profit-sharing plans, trusts, estates, charitable organizations, and corporations. According to their SEC filing, as of September 30, 2020, SBA had approximately $377 million in assets under management. The data presented in this blog post has been obtained from SBA's 13F filing for Q2 2020 and Q3 2020, which shows the fund's holdings’ changes during that period.

Main Body

SBA's Q2 2020 vs. Q3 2020 13F holdings comparison shows some interesting changes in SBA's portfolio. In Q2 2020, SBA had 34 holdings, which decreased to 31 holdings in Q3 2020. The total value of holdings also decreased from $34.65 million to $25.23 million, a decrease of 27.1%. Let's dive deeper into some of the significant changes in SBA's holdings.

In Q3 2020, SBA increased its holdings of PIMCO DYNAMIC INCOME FD (PDI) by 21.3%, going from 116,018 shares to 137,920 shares. The value of the holding increased by 22%, from $2.868 million to $3.498 million. PDI's asset allocations are 26.9% Corporate Bonds, 4.4% U.S. Treasury, and 2.3% Municipal Bonds.

SBA reduced its holdings of PIMCO DYNAMIC CR INCOME FD (PCI) by 2.8% in Q3 2020, going from 157,305 shares to 152,788 shares. The value of the holding decreased by 5.8%, from $2.899 million to $3.068 million. PCI's asset allocations are 55.5% Corporate Bonds and 16.8% Non-U.S. Bond.

In Q2 2020, SBA held 2,747 shares of APPLE INC (AAPL) valued at $1.002 million. In Q3, the holdings saw an increase of 493.7% to 16,298 shares worth $1.887 million. The steady growth of Apple's share price during the pandemic is the primary reason for the increase in SBA's shares. The stock has been one of the top performers this year, thanks to Apple's strong financials and high demand for their products.

One of the biggest changes in SBA's holdings in Q3 2020 was the addition of UNITED PARCEL SERVICE INC (UPS). In Q2, SBA had no shares in UPS. However, in Q3, they added 14,178 shares, valued at $1.418 million. The stock's price has surged since the pandemic hit, with an increase in online shopping, leading to a surge in demand for courier services, including UPS.

Another notable addition to SBA's holdings in Q3 was the inclusion of AT&T INC (T). In Q2, SBA held 22,104 shares of the company. In Q3, they increased their holdings by 97.7% to 43,643 shares worth $1.244 million. AT&T's stock has been facing headwinds in recent years due to debt concerns and pressure from new entrants like Netflix and Amazon. However, the company's stock has rallied during the pandemic as investors bet on the company's telecom and media assets.

Conclusion

In conclusion, the data shows that SBA's Q2 2020 vs. Q3 2020 13F holdings comparison had several significant changes. SBA increased its holdings in PDI and AAPL while decreasing its holdings in PCI. SBA also included UPS and T in its Q3 holdings, indicating a bullish outlook on these companies. However, SBA's overall value of holdings decreased during this period, suggesting a conservative approach in the face of economic uncertainty caused by the pandemic. It is interesting to note that the pandemic has brought volatility to the markets, with many funds taking different paths to navigate this difficult time. Investors must remain vigilant and stay informed to make informed decisions in today's rapidly changing market.