Investing in the Q3 vs Q4 2022: A Close Look into Cumberland Advisors' 13F Holdings

Investing in a fund requires a lot of research: one must review the portfolio, the management team, historical returns, and more. One tool that investors use to weigh their investment decisions is the Form 13F, which discloses the investment holdings of institutional investors on a quarterly basis. This reporting document can help investors make informed decisions, thereby minimizing the risk of losing money.

In this blog post, we focus on Cumberland Advisors, a registered investment advisory firm that manages over $5 billion worth of assets. We dive into their Q3 2022 vs. Q4 2022 13F holdings comparison, which includes 36 companies listed on the CSV above. Our analysis focuses on the companies that the firm increased, decreased, and eliminated shares from their Q3 2022 to Q4 2022 portfolio.

Changes in Cumberland Advisors' 13F Holdings

Firstly, Cumberland Advisors' top holding changed from the SPDR S&P 500 ETF Trust (SPY) to the SPDR Series Trust (XAR) – the latter having appreciated 12.6% in value from Q3 to Q4 2022, while SPY dropped by 44.4%. The company decreased their holdings in Apple (AAPL) and JPMorgan Chase & Co. (JPM), with the Q3 2022 value ($000) amounting to $2,730 and $4,976, respectively, and dropping to $2,566 and $3,982 in Q4. Meanwhile, Cumberland increased their holdings in United Rentals Inc. (URI) and Caterpillar Inc. (CAT), with Q3 2022 value ($000) figures of $2,480 and $1,616, respectively, rising to $3,253 and $2,359 in Q4.

The company also eliminated holdings in some stocks in Q4 2022, including the SPDR S&P Biotech ETF Trust (XBI), Select Sector SPDR Fund - Consumer Discretionary (XLY), Select Sector SPDR Fund - Technology (XLK) and Direxion Shares ETF Trust - Daily S&P 500 Bull 3X Shares (SPXL), which had a total value of $17,093, and were replaced with other holdings.

In terms of sectors, the company increased their holdings in the Select Sector SPDR Fund - Energy (XLE) by 54.7%, while decreasing their holdings in Microsoft (MSFT) by 10.2%. The CSV also shows that the company sold all shares of the VanEck ETF Trust (GDX), and raised its holdings in the iShares Inc. (ILF) by 37.1%.

Ultimately, these changes suggest that Cumberland Advisors is looking to take a more bullish stand on the Aerospace and Defense, Construction, and Metals and Mining sectors. Furthermore, with decreased holdings in tech companies like Apple and Microsoft, and an elimination in XBI ETF shares, the company may expect a shift in the technology sectors towards other industries.

Conclusion

In conclusion, when evaluating whether or not to invest in a fund like Cumberland Advisors, for instance, diving into their Form 13F dispositions report can give investors a sense of what the company is doing in total. The CSV data illustrates that the company added holdings in the Aerospace and Defense, Construction, and Metals and Mining sectors, decreased holdings in technology stocks, and eliminated some holdings altogether. It serves as concrete evidence that Cumberland Advisors is constantly adjusting their investments and looking for new growth opportunities.