International Value Advisers (IVA) Q3 vs. Q4 2020 Holdings Comparison: Berkshire Hathaway and Mastercard stocks sold, Baidu picked up.

International Value Advisers, LLC (IVA) is a value investing firm that has been managing money since 2007. They have a long-term, fundamental approach to investing, and they specialize in global equities. Recently, they released their Q3 2020 vs. Q4 2020 13F Holdings Comparison, which details the changes in their holdings over the past quarter.

The report is based on the holdings of IVA's flagship mutual fund, the IVA Worldwide Fund (IVWAX), as of December 31, 2020. The report is required by the U.S. Securities and Exchange Commission (SEC) and provides investors with a snapshot of the firm's holdings.

One of the significant changes in IVA's holdings was in Newmont Corp. (NEM), where they sold 7.8% of their holdings, going from 1,731,913 shares in Q3 2020 to 1,691,640 shares in Q4 2020. Newmont is a gold mining company, and it's not surprising to see a fund manager like IVA reduce its holdings in this sector as gold prices have been relatively stagnant.

Another notable change was in Berkshire Hathaway Inc. (BRK). IVA sold 20.1% of its holdings in the B shares (BRK-B) and 20.7% of its holdings in the A shares (BRK-A) between Q3 and Q4, going from 484,419 shares to 355,666 shares in BRK-B and from 240 shares to 175 shares in BRK-A. Berkshire Hathaway is a conglomerate run by famed billionaire Warren Buffett, and it is widely considered a bellwether for the U.S. economy. The reduction in holdings suggests that IVA may be less confident in the U.S. market's short term performance.

IVA also sold 22.2% of its holdings in Mastercard Inc. (MA), reducing its position from 64,125 shares to 47,285 shares. Mastercard is a leading payment technology company, and it's possible that IVA sees better opportunities elsewhere in the financial sector.

In contrast, IVA increased its holdings in Baidu Inc. (BIDU) by 29.9%, going from 118,746 shares to 90,273 shares. Baidu is one of China's largest technology companies, and IVA's increased holdings may suggest that they see the potential for growth in China's tech sector.

IVA's report also highlights some smaller companies that the fund decreased its holdings in. For example, it sold 90.3% of its holdings in Astronics Corp. (ATRO), going from 1,662,594 shares to just 94,125 shares. Astronics is an aerospace and defense company, and this significant reduction in holdings could suggest that IVA is less bullish on the sector overall.

Similarly, IVA sold 81.4% of its holdings in Phoenix New Media Ltd. (FENG), going from 1,691,403 shares to 322,657 shares. Phoenix New Media is a Chinese media company, and this reduction in holdings could suggest that IVA is less optimistic about the Chinese media market.

Overall, the changes in IVA's holdings between Q3 and Q4 2020 suggest that the firm is making adjustments to its portfolio based on their convictions for the market going forward. The reduction in holdings in some of the most significant holdings, such as Berkshire Hathaway and Mastercard, suggests that IVA may be less bullish on the U.S. economy in the short term. The increased holdings in Baidu may indicate that IVA sees growth opportunities in China's tech sector.