Investing in Q4 2022: Two Creeks Capital Management's Latest Moves

Two Creeks Capital Management, LP is a long/short equity hedge fund founded in 2013 by John Orrico. Known for placing bets on technology and finance sectors, the firm manages over $1 billion in assets. Two Creeks recently filed its 13F with the SEC. This blog post will analyze and compare Two Creeks' Q3 2022 and Q4 2022 holdings, aiming to identify trends and provide insights on their latest moves.

Visa Inc: +17.4%

Two Creeks had 1,090,390 shares of Visa Inc valued at $193,708,000, as of Q3 2022. In Q4 2022, they increased their shares by 0.42% to 1,094,959, with a value of $227,488,000 - an increase of 17.4%. Visa is the world's largest payment network company, and Two Creeks' increase in shares seems to suggest a bullish outlook on the stock. The company recently reported its Q3 2021 earnings, with revenue of $6.1 billion - a 27% year-over-year increase.

HDFC Bank Ltd: +29.5%

Two Creeks' stake in HDFC Bank Ltd increased from 2,488,123 shares in Q3 2022 with a value of $145,356,000 to 2,752,590 shares with a value of $188,304,000 in Q4 2022 - a 29.5% increase. HDFC Bank is India's largest private bank, and it operates in areas such as retail, wholesale banking, and treasury services. It's been a popular pick among institutional investors, with Vanguard, BlackRock, and other firms also increasing their positions in the company. HDFC Bank Ltd has shown strong growth in recent years, and Two Creeks' position in the bank reflects confidence in the company's continued success.

Floor & Decor Holdings Inc: -3.8%

Two Creeks held 2,504,140 shares in Floor & Decor Holdings Inc in Q3 2022, valued at $175,941,000. In Q4 2022, their position reduced by 2.92%, and they held 2,429,797 shares, valued at $169,186,000. Floor & Decor is a specialty retailer of hard-surface flooring and related accessories. The company operates stores in the US, and its stock has performed well in recent years. The decrease in holdings by Two Creeks could indicate a cautious approach in flooring retail.

Amazon.com Inc: -100%

Two Creeks held 346,520 shares worth $39,157,000 in Amazon.com Inc in Q3 2022. In Q4 2022, their position was entirely liquidated. Amazon.com Inc is an multinational technology company and the largest e-commerce retailer in the world by revenue. The reason for liquidation is not clear and could be a strategic move based on new risks or opportunities elsewhere in their portfolio.

Conclusion:

Two Creeks' filings suggest the firm is increasing its positions in major finance companies, even though markets remain unpredictable due to COVID-19. As this post has shown, they are still looking into the technology and e-commerce sectors, despite several holdings reductions. Through understanding the trends and movements of these holdings, investors can make informed decisions about their own portfolios. Whether it's a continuation of current market trends or investments in new sectors, Two Creeks' 13F filings provide an intriguing investigation into the world of global finance.