Knighthead Capital Management's Q3 2022 vs. Q4 2022 Investment Strategy

Knighthead Capital Management, LLC is a New York-based SEC-registered investment adviser that manages approximately $8.7 billion in assets. Their investment strategies include distressed and special situation investments in a variety of sectors, including energy, financial, healthcare, and retail.

In this blog post, we will discuss Knighthead Capital Management's changes in holdings based on their 13F filings for Q3 2022 and Q4 2022. The 13F filings are a quarterly report that institutional investment managers must file with the SEC. They include a list of all holdings, including the number of shares, the value of each holding, and the percentage change from the previous quarter.

HERTZ GLOBAL HOLDINGS INC

Knighthead Capital Management saw no change in their Hertz Global Holdings Inc. holdings between Q3 and Q4. The number of shares held remained the same, and there was only a 5.5% decrease in value.

SPDR S&P 500 ETF TR

Knighthead Capital Management increased its holdings of SPDR S&P 500 ETF TR put options from 100,000 to 1,500,000 shares, resulting in a total value increase of 60.6%.

ISHARES TR

Knighthead Capital Management maintained its holdings of iShares TR put options for the third quarter in a row, with 2,500,000 shares held in both Q3 and Q4. However, there was a 3.1% increase in the value of these holdings in Q4.

SELECT SECTOR SPDR TR

Knighthead Capital Management added Select Sector SPDR TR put options to its portfolio in Q4, with 1,000,000 shares held and a total value of $87,470.

SABRE CORP

Knighthead Capital Management had a significant increase in their Sabre Corp holdings, with 12,000,000 call options held in Q4, compared to 4,500,000 in Q3. There was also a 220% increase in the value of these holdings.

GLOBAL BLUE GROUP HOLDING AG

Knighthead Capital Management had a significant increase in its holdings of Global Blue Group Holding AG, with 9,286,969 shares held in Q4 compared to 5,470,175 in Q3. This resulted in a 69.8% increase in the value of these holdings.

COINBASE GLOBAL INC

Knighthead Capital Management added Coinbase Global Inc. to their portfolio in Q4, with 69,025,000 shares held and a total value of $38,987.

BRAEMAR HOTELS & RESORTS INC

Knighthead Capital Management maintained its holdings in Braemar Hotels & Resort Inc., with 1,498,937 shares held in both Q3 and Q4, but there was a 4.4% decrease in value.

ATI PHYSICAL THERAPY INC

Knighthead Capital Management had a significant increase in its ATI Physical Therapy Inc. holdings, with 12,929,880 shares held in Q4 compared to 10,765,559 in Q3. However, there was a 63.4% decrease in the value of these holdings.

SELECT SECTOR SPDR TR, ISHARES TR, AND ALIGHT INC.

Knighthead Capital Management added Select Sector SPDR TR, iShares TR, and Alight Inc. to their portfolio in Q3, but they sold all of their holdings in Q4. As a result, there was a 100% decrease in the number of shares held and the value of these holdings.

In conclusion, Knighthead Capital Management made some significant changes to its portfolio in Q4, with several new holdings and an increase in others, such as Sabre Corp and Global Blue Group Holding AG. These changes reflect the company's investment strategy and its focus on a diversified portfolio of distressed and special situation investments.