Spindletop Capital, LLC: A Look at Q2 2020 and Q3 2020 13F Holdings Comparison

The second quarter of 2020 was a tumultuous period for most hedge funds and institutional investors, with the onset of the COVID-19 pandemic and its accompanying economic turmoil. The third quarter, on the other hand, saw a recovery in the markets, spurred in part by the unprecedented fiscal and monetary stimulus measures. Against this backdrop, Spindletop Capital, LLC filed its 13F form with the SEC, disclosing its holdings as of June 30, 2020. Three months later, the Houston-based investment firm again filed a 13F form, this time detailing its positions as of September 30, 2020. In this article, we explore the changes in Spindletop Capital's portfolio between these two quarters.

BERKSHIRE HATHAWAY INC DEL: A Major Addition

Spindletop Capital made a major move in Q3 2020, adding a position of 30,000 shares in Berkshire Hathaway Inc Del (BRK-B). This represents a notable shift from the previous quarter, when the firm did not hold any shares in the company. Berkshire Hathaway, helmed by legendary investor Warren Buffett, is a diversified holding company whose subsidiaries are involved in a wide array of industries, including insurance, railroads, utilities, and consumer goods.

CHUBB LTD.: Another New Holding

In addition to Berkshire Hathaway, Spindletop Capital added a new holding of 20,000 shares in Chubb Ltd (CB) in Q3 2020. Chubb is a multinational insurance company that provides a range of property and casualty insurance products and services to businesses and individuals worldwide. Like Berkshire Hathaway, Chubb is known for its conservative management style and long-term focus.

TEXAS CAPITAL BANCSHARES INC: Put Option Position Reduced

Among the changes in Spindletop Capital's holdings in Q3 2020 was a reduction in its put option position in Texas Capital Bancshares Inc. The firm held 100 put option contracts in the company as of June 30, 2020, but this was reduced to just 100 contracts as of September 30, 2020. The value of the put option position also decreased from $12,000 to $4,000 over the same period, representing a decline of 66.7%.

Conclusion

Spindletop Capital, LLC's Q3 2020 13F filing reveals a few key changes to its portfolio from the previous quarter. The addition of positions in Berkshire Hathaway and Chubb Ltd could be seen as a sign of the firm's confidence in the long-term prospects of these companies, despite the ongoing uncertainty in the global economy. Meanwhile, the reduction of its put option position in Texas Capital Bancshares Inc suggests that Spindletop Capital may be less bearish on the prospects of this company compared to the previous quarter. As always, investors should conduct their own due diligence before making any investment decisions based on a hedge fund's 13F filings.