Investment Firm Gains Big in Q4 2022: Cornercap's Shifts in Holdings Drive Success

Cornercap Investment Counsel Inc's Q4 2022 report shows massive gains for their investment portfolio, marking a successful shift in their holdings. The firm's moves were strategic, with some companies selling, while others were bought, and still others remained the same. By the end of the year, the changes resulted in a gain of 6.4% in the firm's holdings. The portfolio adjustments, made between Q3 and Q4, included significant increases in shares of Exxon Mobil (XOM) and a decrease in shares of Johnson & Johnson (JNJ). Notably, the fund increased its stake in Cisco Systems, Inc. (CSCO) and Bank of America Corporation (BAC). Changes to the fund's holdings also reflect selling of some major pharmaceutical companies, including Merck & Co., Inc. (MRK). The fund's report also shows a rise in value for some of the firm's holdings in the technology sector, such as gains in Adobe Systems Inc. (ADBE) and Verisign Inc. (VRSN). We take a look at the changes in Cornercap's holdings that drove their success throughout Q4 2022.

The Sale of Major Pharmaceuticals

One of the most significant changes in the fund's portfolio was the selling of stocks in pharmaceuticals. Merck & Co., Inc., in particular, saw a decrease in shares held by the firm from 53,149 to 51,376. This reduction in shares led to a drop of roughly 4.4% in the value of the stock held by Cornercap Investment Counsel Inc. However, the stock regained some ground in the fourth quarter, rising to 5,700 shares, with the value of the holding reaching $5,700,000. Other pharmaceutical companies to lose shares were Bristol Myers Squibb Co. (BMY), which saw a decrease from 55,562 to 52,845 shares, and AbbVie Inc. (ABBV), which lost 1,632 shares from the prior quarter. These changes were made despite rising share prices in pharmaceuticals during Q4 of 2022.

Gains in Energy Stocks

One of the remarkable changes in Cornercap's fund was the gain in shares of Exxon Mobil. The holding of Exxon Mobil shares increased by 12,651 shares, paving the way for a total of 62,260 shares held by the fund. Along with Exxon Mobil, the fund also increased its holdings in Kinder Morgan, Inc. (KMI), rising from 189,418 to 189,127 shares. These increases in energy stocks played a significant role in the fund's increased success by the end of the year.

Technology Holding Increases

Several technology stocks also made a significant impact on the firm's success in Q4 2022. Shares in Cisco Systems, Inc. saw a drastic increase, rising from 77,622 to 102,732 shares. The increased stake in Cisco resulted in the stock being the third-largest holding for the fund by the end of the year. The fund's stake in Adobe Systems Inc. (ADBE) also saw an increase, rising from 7,691 to 8,017 shares, and Verisign Inc. (VRSN), jumping from 9,591 to 9,922 shares. These holdings showed the fund's positive outlook on technology, which played out well in the final quarter.

Conclusion

Cornercap's investment team made several significant changes to their Q4 2022 holdings, resulting in a gain of 6.4% for the fund by the end of the year. The fund's notable increases in energy stocks, such as Exxon Mobil and Kinder Morgan, Inc., alongside increased holdings in technology stocks like Cisco Systems, Inc., Adobe Systems Inc., and Verisign Inc., were the main drivers of success. Despite selling shares in some of the most significant pharmaceutical companies, several other strategic moves allowed Cornercap's Investment Counsel Inc. to achieve its impressive Q4 results.