Investment Shifts: SFE Investment Counsel Q3 2022 vs. Q4 2022

As we approach the end of 2022, it's a good time to analyze investment portfolios and their performance. Looking at SFE Investment Counsel's Q3 2022 and Q4 2022 13F holdings comparison, we can see a number of notable changes. Let's dive into the data to understand the reasoning behind the shifts and how they may shape the fund's future investments.

One of the biggest changes in SFE's portfolio was an increase in holdings of Cleveland-Cliffs Inc. (CLF). The fund added 13,206 shares, bringing their total to 726,337 shares in Q4 2022. This corresponds with a 54.1% increase in value. This move likely reflects SFE's bullish stance on the company's growth prospects, particularly in light of the recent increase in steel prices.

On the other hand, SFE's holdings in Apple Inc. (AAPL) decreased during Q4 2022, with the fund selling 1,847 shares. This represents a 4% decrease in value. This shift seems to be in line with the recent decrease in Apple's stock price, likely reflecting concerns over the company's slowing iPhone sales and increased competition in the tech industry.

Another company that saw a significant decrease in holdings was Palo Alto Networks Inc. (PANW), with SFE selling 323 shares, representing a 14.6% decrease in value. This could be due to concerns about the company's financial health, as it recently failed to meet revenue expectations, leading to a decrease in stock price.

One change that may indicate optimism about a company's future was SFE's increase in holdings of Oneok Inc. (OKE). The fund added 2,875 shares, resulting in a 33.4% increase in value. This move seems to reflect the company's recent partnerships in the renewable energy space, which could position it for long-term growth.

SFE Investment Counsel also made significant changes to its holdings in Invesco Exchange-Traded Fund Trust II. The fund decreased holdings in Invesco S&P 500 Low Volatility ETF (BSJP) and Invesco S&P SmallCap 600 Pure Value ETF (RZV) and increased holdings in Invesco S&P 500 Equal Weight ETF (RSP), Invesco S&P SmallCap 600 Pure Growth ETF (RZG), and Invesco S&P SmallCap 600 Revenue ETF (RWJ). These changes suggest a shift towards more growth-oriented investments in small-cap companies.

In summary, SFE Investment Counsel's Q3 2022 and Q4 2022 13F holdings comparison reveals a portfolio that has made several shifts reflecting the fund’s outlook on individual companies and industries. While some adjustments indicate bullishness, others may highlight concerns over a company's financial health or competition. By analyzing these changes, investors can gain insight into how SFE is positioning its portfolio for future growth.