Shifting Priorities: Comparing Callahan Advisors' Q4 2022 vs. Q1 2023 13F Holdings
Ava Hoppe | 29 April, 2023
Investors always look forward to how their favorite companies will perform in the future. Similarly, hedge funds, institutional investors, and high-net-worth individuals are always keeping an eye out for the latest 13F filings of their favorite investment managers. One such company is Callahan Advisors, LLC, which recently released its Q4 2022 vs. Q1 2023 13F holdings, and the changes are worth discussing.
Before we dive into the comparison, let's first break down what the 13F filings mean. In the US, institutional investors who manage over $100 million in assets are required to file a quarterly report with the Securities and Exchange Commission (SEC) called a Form 13F. This report shows the company's holdings of publicly traded securities as of the end of the quarter. The 13F report is an essential tool for investors to analyze asset allocation, changes in portfolio concentrations, and the overall investment strategy of a fund manager.
Callahan Advisors, LLC is a Cincinnati-based wealth and asset management company that provides services to individuals, corporations, foundations, and retirement plans. The report shows the company's holdings as of the end of December 2022 (Q4 2022) compared to the end of March 2023 (Q1 2023). In this blog post, we will compare the holdings in terms of the company issuer, option type, value, and the percentage change.
Issuer Analysis
According to the report, Callahan Advisors, LLC's top holdings in both quarters were Microsoft Corporation (MSFT) and Apple Inc. (AAPL). These two tech giants were the only companies that remained at the top of the list, despite minor changes in the number of shares held. The remaining top ten issuers underwent significant changes, with some moving up the list and some going down significantly. For instance, Alphabet Inc. Class C (GOOG) moved down from the third position to the seventh position in terms of stock value, whereas Meta Platforms Inc. Class A (META) moved up from ninth place to fourth place, experiencing an 87.8% increase in shares held.
Option Analysis
In terms of option analysis, Callahan Advisors, LLC seemed to have preferred plain vanilla shares over derivatives such as calls, puts, and convertible bonds. The fund had no call or put options in either quarter, and the only convertible bond belonged to Bristol-Myers Squibb Co (BMY). This strategy is consistent with the company's long-term investment approach, which prioritizes owning quality companies with durable competitive advantages.
Value Analysis
In terms of value, the company's holdings increased from $339,292,000 to $371,642,000, representing a 9.5% increase. The biggest drivers of this increase were Meta Platforms Inc. Class A (META), which saw a 87.8% increase in the number of shares held, and Booking Holdings Inc. (BKNG), which had a 47.2% increase in shares held. Other companies that saw significant increases in the value of their holding included Fortinet Inc. (FTNT) with a 44.5% increase, Skyworks Solutions Inc. (SWKS) with a 31.9% increase, and FedEx Corporation (FDX) with a 32.9% increase.
Percentage Change Analysis
When comparing Callahan Advisors, LLC's holdings in Q4 2022 and Q1 2023, the percentage change is a crucial metric. There were quite a few companies that saw a decrease in the number of shares held, including Pfizer Incorporated (PFE), United Healthcare Corp (UNH), and Procter & Gamble Co (PG). The biggest drop was seen in Enbridge Inc (ENB.TO), which saw a 49.8% decrease in shares held. On the other hand, companies that saw an increase in the number of shares held included Intl Flavors & Fragrances Inc (IFF), Brookfield Corp (BN.TO), and Schlumberger Ltd (SLB).
Conclusion
In conclusion, Callahan Advisors, LLC's Q4 2022 vs. Q1 2023 13F holdings report showed significant changes in terms of issuer analysis, value analysis, and percentage change analysis. The company remained bullish on Microsoft Corporation (MSFT) and Apple Inc. (AAPL), while other top holdings underwent significant changes. The company also emphasized a preference for plain vanilla shares over derivatives such as call and put options. The value of the company's holdings increased by 9.5% driven by increases in the number of shares held of various issuers. However, there were a few notable exceptions, such as Enbridge Inc (ENB.TO), which saw a significant decrease in shares held. Overall, the report showed a shifting of priorities for the company, highlighting the importance of monitoring such changes for investors who want to stay on top of their portfolio.
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