The Changing Landscape of Thomas J. Herzfeld Advisors: A Q3 vs. Q4 2022 13F Holdings Comparison

Investment management is all about adapting to the constantly-shifting tides of the market. The success of a fund depends on the ability of its managers to keep up with these fluctuations, and to make the right decisions about when to buy and sell different assets. One firm that has been particularly adept at navigating these challenges is Thomas J. Herzfeld Advisors. In this blog post, we'll take a deep dive into the Q3 vs. Q4 2022 13F holdings comparison for this firm, examining the changes in its holdings and shedding light on what these changes might mean for investors.

Highland Floating Rate Opportunities Fund (HFRO)

One of the major changes in the Thomas J. Herzfeld Advisor's holdings is the increase in shares of Highland Floating Rate Opportunities Fund (HFRO). The firm went from owning 2,395,101 shares of the company in Q3 to owning 2,460,982 shares in Q4. The value of these shares also increased from $23,280,000 to $25,348,000, marking an 8.9% change. This may be an indication that Thomas J. Herzfeld Advisors sees potential in HFRO's floating rate strategy, which can provide investors with a means of generating income in a low-yield environment.

Saba Capital Income & Opportunities Fund (BRW)

Another company that saw a significant increase in Thomas J. Herzfeld Advisors' holdings is Saba Capital Income & Opportunities Fund (BRW). The firm's shares in this company went from 1,254,873 in Q3 to 1,945,655 in Q4. The value of these shares also increased from $9,926,000 to $14,806,000, marking a 49.2% change. Saba Capital Income & Opportunities Fund invests primarily in credit and credit-related instruments, which may be attractive to investors seeking to diversify their portfolios.

Nexpoint Diversified Rel Et (NXDT)

One company that saw a significant decrease in Thomas J. Herzfeld Advisors' holdings is Nexpoint Diversified Rel Et (NXDT). The firm went from owning 1,540,366 shares of the company in Q3 to owning 1,212,410 shares in Q4. The value of these shares also decreased from $19,332,000 to $13,591,000, marking a 29.7% change. Nexpoint Diversified Rel Et invests in a diversified portfolio of real estate assets, which may have lost some of its appeal in the current economic environment.

Oxford Lane Cap Corp (OXLC)

One of the more interesting changes in Thomas J. Herzfeld Advisors' holdings is the addition of Oxford Lane Cap Corp (OXLC). The firm did not own any shares of this company in Q3, but owned 2,643,918 shares in Q4. The value of these shares was $0 in Q3 and $13,404,000 in Q4. This marks an intriguing move, as Oxford Lane Cap Corp invests primarily in collateralized loan obligations and other structured finance investments, which can be complex and high-risk.

Conclusion

The Q3 vs. Q4 2022 13F holdings comparison for Thomas J. Herzfeld Advisors reveals some interesting changes in the firm's holdings. The increase in shares of Highland Floating Rate Opportunities Fund and Saba Capital Income & Opportunities Fund suggests that the firm is optimistic about these companies' investment strategies. The decrease in shares of Nexpoint Diversified Rel Et may indicate that Thomas J. Herzfeld Advisors is wary of real estate investments in the current market environment. The addition of Oxford Lane Cap Corp is a bold move that may signal the firm's willingness to take on higher-risk, higher-reward investments. As always, investors should conduct their own research before making any financial decisions.