Revolutionary Changes: Comparing Worm Capital's 13F Holdings in Q3 2022 vs Q4 2022

Worm Capital, LLC is a hedge fund that manages a portfolio of equities worth millions of dollars. The fund has recently made some significant changes in its holdings, as per the 13F filings with the SEC. In this article, we will compare Worm Capital's Q3 2022 holdings with its Q4 2022 holdings, and analyze the changes that have taken place.

Tesla Inc (TSLA)

Tesla has been one of the most volatile stocks in recent times, and Worm Capital seems to have taken advantage of that. In Q3, the fund held both calls and shares of Tesla, with a higher number of calls (793,500) than shares (595,458). However, in Q4, there has been a massive reduction in the fund's holdings, with only 478,200 calls and 472,315 shares. This reduction in holdings has brought down the value of the fund's Tesla holdings from $210,476,000 to $58,179,000, a decrease of 72%.

Spotify Technology SA (SPOT)

Spotify has seen a significant change in Worm Capital's holdings, with a 59.3% reduction in the number of calls held (800,100 in Q3 vs 356,100 in Q4). The number of shares held has also reduced significantly, from 172,533 in Q3 to only 26,978 in Q4, a decrease of 84.4%. This reduction in holdings has brought down the value of the fund's Spotify holdings from $69,049,000 to $28,114,000.

Amazon.com Inc (AMZN)

Worm Capital has reduced its holdings in Amazon in Q4, with a significant reduction in the number of shares held (130,160 in Q3 vs 59,236 in Q4). Additionally, the fund has completely exited its call option position in Amazon, which had a value of $41,302,000 in Q3. This reduction in holdings has brought down the value of the fund's Amazon holdings from $14,708,000 to $4,976,000, a decrease of 66.2%.

Las Vegas Sands Corp (LVS), Wynn Resorts Ltd (WYNN), and MGM Resorts International (MGM)

Worm Capital has maintained its holdings in these three resort and casino stocks, with no change in the number of shares held between Q3 and Q4. However, there has been a slight increase in the value of the fund's LVS holdings (from $135,000 to $173,000) and WYNN holdings (from $123,000 to $161,000), while the value of the MGM holdings has remained almost the same (from $85,000 to $91,000).

Alibaba Group Hldg Ltd (BABA) and Alphabet Inc (GOOGL)

Worm Capital has maintained the same number of shares in BABA and GOOGL between Q3 and Q4, but the value of its holdings has changed. In the case of BABA, the value has increased slightly from $82,000 to $90,000, while in the case of GOOGL, the value has decreased from $89,000 to $81,000.

Disney Walt Co (DIS) and Costco Whsl Corp New (COST)

Worm Capital has maintained the same number of shares in DIS and COST between Q3 and Q4, but the value of its holdings has changed. In the case of DIS, the value has decreased from $80,000 to $73,000, while in the case of COST, the value has decreased from $74,000 to $71,000.

Mohawk Inds Inc (MHK) and Airbnb Inc (ABNB)

Worm Capital has increased its holdings in MHK in Q4, with the number of shares increasing from 610 to 610. This increase in holdings has brought up the value of the fund's MHK holdings from $56,000 to $62,000, an increase of 11.3%. In contrast, the fund has reduced its holdings in ABNB in Q4, with the number of shares decreasing from 675 to 675. This reduction in holdings has brought down the value of the fund's ABNB holdings from $71,000 to $57,000, a decrease of 18.7%.

Conclusion

In conclusion, Worm Capital's 13F filings reveal a significant reduction in some of its large holdings while maintaining others. The fund's holdings in Tesla, Spotify, and Amazon have seen significant reductions, while its holdings in LVS, WYNN, MGM, BABA, GOOGL, DIS, and COST have largely remained the same. Additionally, the fund has increased its holdings in MHK, while reducing its holdings in ABNB. These changes may be a reflection of the fund's investment strategy and outlook for the future, and we will have to wait till the next quarter to see if it maintains this trajectory.