Foothills Asset Management's Q1 2020 13F Report: Reductions in XLE, KRE, and V, Increases in BND and VWO, and New Position in MO

Foothills Asset Management, Ltd. is a registered investment advisory firm, headquartered in Denver, Colorado, with satellite offices in Omaha and Mount Pleasant, SC. The firm manages portfolios for individuals, trusts, pensions, foundations and endowments.

One of the primary approaches taken by the firm is growth investment. Growth investment seeks to grow the value of a portfolio primarily through capital appreciation. The growth investment style emphasizes the investment in stocks of companies that have high potential for earnings growth and are typically reinvesting their earnings back into the business.

Foothills Asset Management's recently submitted 13F report disclosed its holdings as of March 31, 2020. A comparison with the previous quarter's holdings, December 31, 2019, was also reported. Based on the report, Foothills Asset Management sold off many of its positions in the last quarter, but also saw a few sizable increases in positions.

The most significant QoQ change in holdings in percentage terms was in XLE, SPDR Sector - Energy ETF. Foothills Asset Management offloaded about 55.7% of their XLE position in Q1 2020 compared to Q4 2019; therefore, their position was reduced from 14,029 shares to 12,836 shares. The Q4 2019 value was $842k, but this dropped to $373k by the end of Q1 2020.

The firm also sold off almost 50% of their KRE position. KRE, SPDR S&P Regional Banking ETF, saw its shares fall from 41,917 in Q4 2019 to 38,892 in Q1 2020. The value of KRE held by Foothills Asset Management dropped from $2.4M in Q4 2019 to $1.3M in Q1 2020, representing a 48.1% reduction in the position QoQ.

Another position that also saw a notable reduction was in V, Visa, Inc. The number of shares was down from 16,446 in Q4 2019 to 12,438 in Q1 2020, representing a 24.4% reduction in the position. The value of V also declined from $3.1M in Q4 2019 to $2.0M in Q1 2020. This reduction represents a 35.1% decline in value QoQ.

However, a few positions did record increases. Foothills Asset Management's position in BND, Vanguard Total Bond Market ETF, increased from 58,346 shares in Q4 2019 to 69,076 shares in Q1 2020. The value also increased from $4.9M to $5.9M, representing a 20.5% increase in value QoQ.

Another position that increased was VWO, Vanguard Emerging Market ETF. The number of shares increased from 66,691 in Q4 2019 to 63,277 in Q1 2020. Despite the reduction in the number of shares, the value increased from $3.0M to $2.1M. The position represents a 28.4% decline in value QoQ.

The report also revealed Foothills Asset Management added a few new positions in Q1 2020. Financials, Healthcare, and Information Technology continued to be the most significant holdings, with the report disclosing that the firm held a total of 155 positions.

Another notable new position the firm added was in MO, Altria Group. Foothills Asset Management began holding MO in Q1 2020, with the report disclosing the firm holding 24,917 MO shares valued at $963k.

In conclusion, Foothills Asset Management's recently submitted 13F report showed reduced holdings in a few positions, including XLE, KRE, and V, in Q1 2020. In contrast, the firm saw some positions such as BND and VWO increase. The firm also added new positions in MO during Q1 2020. Overall, the report suggests that Foothills Asset Management is staying true to its growth investment approach by repositioning its holdings in the constantly changing market.