Investing Strategy: Analyzing Precept Management's Q3 2022 vs. Q4 2022 13F Holdings

Precept Management LLC, a private investment management firm, recently disclosed its Q3 2022 and Q4 2022 13F holdings with the United States Securities and Exchange Commission (SEC). As of December 31, 2022, Precept Management LLC managed a portfolio worth $366.3 million, down from $431.6 million in Q3 2022.

In this blog post, we'll take a closer look at Precept Management's Q3 2022 vs. Q4 2022 13F holdings, analyzing key movements, and exploring how investors might be able to use this data to inform their investing approach.

Main Body:

The biggest change in Precept Management's portfolio positioning was in Amazon.com Inc. (AMZN) as the investment firm eliminated 9,328 shares which dropped the position down to 32,000 shares overall. The value also decreased, from $3.6 million to $2.7 million, a loss of 25.7%. Another reduction in Q4 2022 was in Altenergy Acquisition Corp. (AEAE), where Precept Management took a complete exit, selling its 150,000 shares for $1.50 million in Q3 2022. The value of this position was down to zero by Q4 2022.

In contrast to these reductions, Precept Management increased its holdings in Microsoft Corp (MSFT) by 66.0%, with the Q3 shares increasing from 9,400 to 16,000 in Q4 2022. This increased Precept's position value in MSFT from $2.2 million in Q3, to $3.8 million in Q4. Precept Management also increased its Q4 2022 holdings in Select Energy Services Inc. (WTTR) by $273,000 and NexPoint Diversified Rel ET (NXDT) by $1,186,000.

Precept Management added new positions in three stocks in Q4 2022, Nutanix Inc. (NTNX), Roc Energy Acquisition Corp., and KeyArch Acquisition Corp. Precept also acquired 30,000 put options of Floor & Decor Holdings Inc. (FND) in Q4 2022. These options gave Precept the right to sell FND shares at a strike price of $75 per share, which is lower than the current market price. If Precept Management's investment team expects FND's stock price to fall, these options could generate profits for the firm.

Conclusion:

Precept Management LLC made significant changes to its portfolio in Q4 2022, with substantial movements in Amazon, Altenergy Acquisition Corp., and Microsoft Corp. These changes suggest that the investment team has a rapid and strategic response to a shifting market environment.

Investors following Precept Management's investment strategy may consider reviewing these changes and adjusting their own holdings accordingly. It is important to maintain a diversified portfolio that aligns with an investor's risk tolerance, financial goals, and investment philosophy. The 13F filings can help investors identify trends in their sector or industry of interest, which helps keep them informed about the market movements and better understand the rationalities behind the investments of large institutional investors.