Investment Company Holdings for Q3 and Q4 2022: Which Stocks Were Bought and Sold?

Heritage Trust Co recently unveiled its Holdings Report for Q3 and Q4 in 2022. The report reveals the companies with the largest percentage changes in holdings. We analyze the data to understand which stocks investors are buying and selling.

Technology Industry

Apple's (AAPL) and Microsoft's (MSFT) shares decreased, while Qualcomm (QCOM) saw no change. On the other hand, Alphabet Inc (GOOG) and Amazon.com Inc (AMZN) had significant sell-offs, while the Alphabet Inc class A (GOOGL) shares remained relatively unchanged. It is not surprising to see large-volume tech stocks being sold off after an extended bull run that largely benefited these companies.

Consumer Staples

Starbucks Corp (SBUX) and Coca-Cola Co (KO) saw an increase in shares, while PepsiCo Inc (PEP) saw a decrease. Procter & Gamble Co (PG) experienced one of the largest percentage increases, showing a clear preference for consumer staples.

Healthcare

AbbVie Inc (ABBV), Merck & Co Inc (MRK), and Gilead Sciences Inc (GILD) all experienced significant increases in holdings, with MRK and GILD even seeing double-digit percentage gains. Meanwhile, the healthcare giant Johnson & Johnson (JNJ) saw only a minimal increase in shares held. These developments suggest a shift in emphasis towards pharmaceuticals, with companies discovering and developing new medicines being rewarded most.

Financials

Morgan Stanley (MS) and US Bancorp (USB) experienced modest increases, while JP Morgan Chase & Co (JPM) and Bank of America Corp (BAC) saw significant gains. For this sector, regulatory changes, which facilitate more share buybacks and higher dividend payouts rather than investment in the business, could be the crucial factor driving investor interest.

Conclusion

The most significant factors behind movements in Heritage Trust Co's 13F holdings (disclosure of equity holdings by institutional investment managers with over $100 million in AUM) included shifts away from some of the biggest technology stocks, preference for consumer staples, emphasis on pharmaceuticals, and perhaps the ability of the financial sector to return cash to investors, rather than being transformatively innovative. However, it is prudent to understand that these changes need not only be driven by performance but also institutional portfolio diversification decisions. It will be fascinating to observe if these changes become systemic of a broader strategy shift, or if they are more idiosyncratic.