Investment Strategy of First Manhattan Co: Analysis of Q3 2022 and Q4 2022 Holdings.

First Manhattan Co., the prominent registered investment advisor managing various investment portfolios, had a total AUM of $26.9 billion as of Q2 2022. The company has been investing primarily in large-cap stocks and technology companies, and their focus remains on generating long-term returns while maintaining diversification. In this article, we will analyze the holdings of First Manhattan Co. in Q3 2022 and Q4 2022, and identify the changes made to the portfolio.

Berkshire Hathaway, Inc.:

Berkshire Hathaway, Inc. (BRK-A) was the top holding of First Manhattan Co. in Q3 2022, with 18,729 shares valued at $7.6 million. The company added to its position in Q4 2022 by 17.6%, and the total holding increased to 22,365 shares valued at $10.4 million, indicating its strong faith in the company's long-term investment potential.

Microsoft Corp.:

First Manhattan Co. had 5.04 million shares of Microsoft Corp. (MSFT) in their portfolio in Q3 2022. This holding increased by 3.5% in Q4 2022 to reach 5.06 million shares, with a combined value of $1.2 billion, indicating their continued confidence in the company's growth prospects.

Apple Inc.:

First Manhattan Co. reduced its holding in Apple Inc. (AAPL) by 14.2% in Q4 2022, as the number of shares decreased from 9.37 million to 8.55 million. The total value of the holding also decreased from $1.29 billion to $1.1 billion. This step may have been due to the high volatility in the tech sector and the company's growing concerns over Apple’s supply chain difficulties.

UnitedHealth Group Inc.:

UnitedHealth Group Inc. (UNH) was another top holding of First Manhattan Co. in Q3 2022. The number of shares held decreased slightly from 1.54 million in Q3 2022 to 1.52 million in Q4 2022, with a total value of $802 million. However, this represents only a 3.4% decrease, and the company still has significant confidence in the long-term prospects for healthcare and managed care services.

Autozone Inc.:

First Manhattan Co. increased its stake in Autozone Inc. (AZO) by 11.2% in Q4 2022. It held 258,600 shares in Q3 2022, valued at $553.9 million, and this number rose to 249,719 shares, with a total value of $615.8 million in Q4 2022. This indicates the company's faith in the long-term growth prospects of the auto parts and accessories retailer.

Closing thoughts:

In conclusion, First Manhattan Co. has taken a prudent approach to managing their investments by maintaining diversification across large-cap stocks and technology companies. While the company reduced its investment in Apple Inc., it increased its holdings in Autozone Inc. and Berkshire Hathaway, reflecting a certain level of optimism regarding the potential of these particular companies. As always, investors need to conduct their analysis and due diligence before making investment decisions.