Shah Capital Management Q4 2022 vs. Q1 2023 13F Holdings Comparison

Shah Capital Management, a California-based investment advisory firm, has disclosed its Q4 2022 and Q1 2023 13F holdings. The report shows that the firm has significantly reshuffled its portfolio in the past quarter. From selling out a considerable stake in New Oriental Education to making significant investments in various companies, Shah Capital Management's portfolio changes are noteworthy. In this article, we will analyze the top holdings of the firm, the new additions, and the reduction in shares from the previous quarter.

In Q1, the firm sold 27% of its stake in New Oriental Education (EDU). The company that provides private educational services in China was worth $97 million in Q4, but the investment was reduced to $71 million in Q1. The decision could be partly due to the recent regulatory crackdowns in China, leading to uncertainty in the education sector's profitability.

On the other hand, Shah Capital Management invested in several companies, with Veon Ltd (VEON) being the most significant addition, worth $62 million. The firm bought about 82 million shares of the multinational telecommunication firm in Q1, making it the firm's top holding. Veon recently reported strong Q1 earnings and is forecasted to see significant growth in the Russian and Pakistani markets.

Another company that Shah Capital Management invested in is Novavax Inc (NVAX), a biotech company focused on developing innovative vaccines. The firm bought 3.5 million shares of NVAX in Q1, worth $29 million, up from 715,000 shares worth $7.3 million in Q4. This notable increase in investment could be due to Novavax's experimental Covid-19 vaccine, which has shown promising results in clinical trials.

In the oil and gas industry, Shah Capital Management reduced its investments in Antero Midstream Corp (AM) by 3% in Q1, worth $22 million. The firm sold about 5000 shares of AM, bringing the total shares down to 2.1 million. However, the firm sold 70% of its stake in Antero Resources Corp (AR) in Q1, reducing the total shares from 994,506 in Q4 to 400,000, worth $9 million.

Overall, Shah Capital Management's portfolio changes reflect the firm's focus on diversifying its portfolio and investing in innovative companies with significant growth potential. While some investments did not turn out as expected, the firm's aggressive investments in Veon and NVAX could pay off in the long run.

In conclusion, Shah Capital Management's Q4 2022 and Q1 2023 13F holdings comparison shows that the firm has made some significant portfolio changes. While some investments were sold out, the firm made significant investments in other companies, diversifying its portfolio. It will be interesting to see how these investments fare in the coming quarters and how they affect Shah Capital Management's financial performance.