Investment Strategies: Comparing American Capital Management's Q3 and Q4 2022 Holdings

American Capital Management is a registered investment advisor that provides financial services while managing portfolios and investments for individuals and institutions. The firm is known for its disciplined and research-driven investment approach, which aims to create long-term value for its clients. In the latest 13F filing for Q3 and Q4 2022, American Capital Management reported its holdings in several companies, indicating a shift in investment strategy. This blog will compare and analyze the changes in holdings of the firm between Q3 and Q4 2022 and explore what they might signify.

Fortinet - A small but significant drop

American Capital Management held 3,599,252 Fortinet shares in Q3, which reduced to 3,565,240 shares in Q4, a decline of 1.4%. In terms of value, the firm was holding $176,831 in Q3, and it decreased to $174,304 in Q4. Fortinet shares have been performing well, and the company is expected to continue to benefit from the shift to remote work and the need for cybersecurity, especially in the cloud.

Manhattan Associates - A significant cut

In Q4 2022, American Capital Management sold 132,065 shares of Manhattan Associates, a slight increase from its 1,320,000 shares held in Q3. The firm held $175,600 in the company in Q3, which decreased to $160,498 in Q4. Manhattan Associates is a supply chain software solutions provider, and the company has demonstrated stable growth over the years.

IDEXX Laboratories - A modest drop

The fund had previously reported 383,347 shares of IDEXX in Q3 that went down to 383,169 in Q4. However, the decrease in shares corresponded with a market value increase by 25.2%; they previously had $124,894 and pumped it up to $156,317 in Q4.

ICON - A growth in shares

The two periods show minimal differences in the sum of shares of ICON PLC held by the fund. In Q3 2022, American Capital Management held 666,552 shares, and that count grew by 817 shares to 667,369 in Q4. As such, the value increased from $122,499 to $129,636, representing a 5.8% growth in value.

AeroVironment Inc. - A Micro Growth

The firm had 1,456,095 shares of AeroVironment as of Q3 and subsequently reported 1,453,469 shares by the end of Q4. There was an increase of 2,626 shares or a growth rate of 2.6%. That said, there was an increased investment by 2.6% from $121,380 to $124,504.

CyberArk Software Ltd. - A substantial decrease

In Q4 2022, the investment management company decided to hedge its bet against CyberArk Software Ltd. Compared to the previous period, American Capital Management lowered the number of shares from 865,660 in Q3 to 870,813 in Q4. Despite that increase in shares, the value of CyberArk holdings reduced by 13% to $112,900 in Q4 from $129,797 in Q3.

ResMed Inc. - A controlled drop

In Q4 2022, the fund manager shed off 0.36% ResMed shares from the Q3 2022 table, going from 524,956 to 522,944 in Q4. The mean value of 2.91% might have influenced the decision to withdraw, to avoid more losses in the longer term.

Conclusion

American Capital Management is known for its well thought out investment strategies, backed by solid research and experience-driven insights. As such, the shifts in its holdings from Q3 to Q4 2022 indicate a deviation from its earlier positions. From the data provided, it is evident that the fund made a few changes to its portfolio in Q4 2022. Although several shifts can be argued to have minor effects as they did not exceed 5%, others significantly moved the market value of the firms of interest. Investors should take the current market conditions, future trends and company profiles into account before making any investment decisions.