Investment Management Giants at Odds with Q3 2022 vs. Q4 2022 - A Dive into Ranger's 13F Holdings

As the adage goes, "never put all your eggs in one basket." And true to its word, the institutional investor Ranger Investment Management, L.P., exemplifies the phrase by diversifying its portfolio to mitigate against any market volatility. The investment firm's latest 13F filings for Q3 2022 vs. Q4 2022 highlights its diverse holdings, indicating the equities it sold and bought over the period. In this blog post, we shall delve into Ranger's top holdings, winners, and losers, and identify the possible reasons for the trades.

Introduction

Ranger Investment Management is a privately-owned investment management company based in Texas, USA. The firm manages over $4.2 billion worth of assets under its management within a robust mix of bonds, equities, debt securities, options, and other financial instruments. Ranger's clientele span from wealthy individuals to pension plans, endowments, corporations, and other institutions. As an institutional investor, disclosing its 13F holdings provides transparency to the public, showing its equity interests, stock purchases or sale, among other trades.

Main Body

Ranger Investment Management's Q3 2022 vs. Q4 2022 13F Holdings Comparison shows significant trades in the period, covering 53 shares in total. The top holdings by value are ELF, EVOP, and WNS. However, over the period, the company sold all of its shares in Permian Resources Corporation (PR) and Sitio Royalties Corp CL A (STR) and bought into new holdings such as YETI Holdings, Inc. (YETI) and Sovos Brands, Inc. (SOVO), among others.

The top three holdings:

e.l.f. Beauty, Inc. (ELF) - Ranger increased its shareholding in ELF by approximately 2.2%, from 1,356,985 shares in Q3 to 1,237,601 shares in Q4. The value of its portfolio in the beauty company rose by 34.1%, from $51,050 in Q3 to $68,439 by the end of Q4.

Evo Payments, Inc. (EVOP) - Ranger increased its shareholding in EVOP by approximately 2.8%, from 1,362,900 shares in Q3 to 1,401,775 shares in Q4. The value of its portfolio in EVOP rose by 4.5%, from $45,385 in Q3 to $47,436 in Q4.

WNS (Holdings) Limited (WNS) - Ranger increased its shareholding in WNS by approximately 2.9%, from 695,395 shares in Q3 to 715,310 shares in Q4. The value of its portfolio in WNS rose by 0.5%, from $56,911 in Q3 to $57,217 in Q4.

Moving on to Ranger's winners, Earthstone Energy, Inc. (ESTE) tops the list, with the company's share price rising by 19.1% over the period, increasing the value of Ranger's portfolio in ESTE by 19.1%. Rounding up the top three winners are BioLife Solutions, Inc. (BLFS), and Mercuri Systems, Inc. (MRCY), with Ranger's portfolios in the firms gaining 18.8% and 35.7%, respectively. On the other hand, the top losers in Ranger's portfolio are Simulations Plus, Inc. (SLP) with a -22.5% return, followed by Avid Bioservices, Inc. (CDMO) and IRADIMED Corporation (IRMD), with -26.1% and -4.6% returns, respectively.

But, what motivated Ranger to buy or sell certain stocks? It may be the companies' profits, revenue growth, financial reports, earning per share (EPS), among other fundamental factors that drive investors' decisions. Another likely reason is for profit-taking among Ranger's portfolio managers as a way of balancing and making new investments to minimize exposure to risk.

Conclusion

In conclusion, Ranger Investment Management's Q3 2022 vs. Q4 2022 13F Holdings Comparison showcases a strategic balance of bought and sold equity shares, reducing exposure to risk and optimizing returns for its clients. The company's diverse portfolio has offset any market volatility and seems to be closely monitoring the companies' fundamental factors to make its trades. As with all investments, caution and careful analysis are necessary. While diversification is a useful risk management tool, past returns are not a guarantee of future performance.