Investing in Q3 2022 vs Q4 2022: Analyzing Financial Sense Advisors' Portfolio Changes

In the world of investing, change is constant. As companies evolve, economic conditions shift and investor preferences change, portfolio managers need to adapt in order to maintain performance. Such changes can be seen in the shifts and churns of the various holdings of mutual funds and hedge funds. One such fund, Financial Sense Advisors, Inc., recently released their Q3 2022 and Q4 2022 13F holdings reports detailing changes in their portfolio. In this blog post, we will analyze and explore the changes made by Financial Sense Advisors, Inc. in the Q3 2022 and Q4 2022 period.

Changes in Holdings

To begin, let us take a closer look at specific changes for some of the biggest shifts in holdings. As of Q4 2022, the highest percentage increase belongs to WisdomTree TR, whose shares held increased by a whopping 10498.3% from 247 in Q3 2022 to 26177 in Q4 2022. The second-largest percentage increase belongs to VanEck ETF Trust, with their shares held increasing by 79.6%, from 6788 in Q3 2022 to 12189 in Q4 2022. Western Digital Corp. saw the third-largest increase in shares held at 14134000, a 100% increase from 0 shares held in Q3 2022.

On the other end of the spectrum, the largest percentage decrease in holdings belongs to iShares TR - 20+ Year Treasury Bond ETF (TLT). Their shares held decreased from 682,785 in Q3 2022 to 13,192 in Q4 2022, a 98.1% decrease. The second-largest decrease in percentage belongs to Select Sector SPDR TR - Energy, (XLE) with a decrease of 70.6% from 149,291 shares held in Q3 2022 to 36,139 shares held in Q4 2022. Lastly, there is a decrease of 58.3% in shares held for Cheniere Energy Inc. (LNG), from 27,509 shares held in Q3 2022 to 12,700 in Q4 2022.

Overall, Financial Sense Advisors, Inc.'s portfolio changes reflect the current market sentiment and conditions, as well as adjustments that help to optimize their portfolio.

Analysis and Interpretation

One interesting trend that stands out is the shift toward precious metals. VanEck ETF Trust (MOAT) increased by 79.6%, while Franco-Nev Corp. (FNV.TO) and Wheaton Precious Metals Corp. (WPM.TO) increased by 21.1% and 77.8%, respectively. Similarly, WisdomTree TR (USFR) had a 10498.3% increase, showing the interest in precious metals or the underlying factors pointing towards this. Another trend worth noting is the decrease in holdings for the energy sector. Select Sector SPDR TR - Energy (XLE) decreased by 70.6%, Cheniere Energy Inc. (LNG) decreased by 58.3%, and Occidental Pete Corp. (OXY) decreased by 2.9%. This indicates the importance of the environment and climate change concerns, as well as geopolitical risks in the energy sector.

Another trend that is worth highlighting is the change of 34,669 shares of Microsoft Corp. (MSFT) between Q3 2022 and Q4 2022. The fund liquidated zero shares and bought a net of 58 shares, however, the new shares held were noted as put. The financial advisors might have changed their strategy by taking a short position on the company or purchasing a protective option, resulting in a net of 58 put options.

Lastly, the fund increased the shares held by 10.9% for Barrick Gold Corp. (ABX.TO). The mining industry is essential to the economy and demand for gold is driven by a wide range of factors such as economic uncertainty, global inflationary trends, and geopolitical risks. By increasing the shares held in Barrick Gold Corp, Financial Sense Advisors, Inc. might be positioning themselves with exposure to this industry.

Conclusion

In conclusion, changes in the holdings of Financial Sense Advisors, Inc.'s portfolio reflect a response to shifts in market sentiment and portfolio optimization. We have seen a clear shift towards precious metals and a decrease in energy holdings. Furthermore, we have seen evidence of a shift in strategy with short positions or protective options on Microsoft Corp. This information can be valuable for investors who are considering investing in Financial Sense Advisors, Inc. or seeking to tailor their own portfolios to reflect current market conditions. Ultimately, it is important to remain vigilant in monitoring your own portfolio and keeping up to date on relevant economic and financial news.