The Power of Data Visualization: Analyzing Empyrean Capital Partners’ Q3 vs. Q4 2022's Portfolio

Empyrean Capital Partners, LP is a multi-strategy hedge fund that utilizes fundamental analysis in combination with quantitative methods to invest primarily in public equity markets globally. The fund recently released its 13F holdings, which provides a snapshot of the fund's positions in publicly traded securities at the end of each quarter. In this blog post, we will take a closer look at the changes in the fund's holdings between Q3 and Q4 of 2022 using data visualization techniques.

The first step to analyze the data is to import the CSV into a data analysis tool. After importing and cleaning the data, a comparison chart is created to analyze the changes in the fund's holdings for individual securities. The chart shows a comparison of the number of shares held by the fund in Q3 and Q4 of 2022. The green bar represents Q3, and the blue bar represents Q4.

One noticeable change is the fund’s large increase in holdings of iShares TR (IWM) put options. The fund increased its holdings by 725,000 shares, with a corresponding increase in value of 116% between Q3 and Q4. In contrast, the fund significantly reduced its holdings in SPDR S&P 500 ETF TR (SPY) put options by 760,000 shares, with a decrease in value of 55%.

The fund's holdings in FERGUSON PLC NEW (FERG) is another security that experienced a significant increase in holdings between Q3 and Q4, with an increase of 243,000 shares, amounting to a 23% increase in value. On the other hand, Ashland Inc (ASH) showed a decrease in holdings of 110,000 shares or 14.2% decrease in value.

The data visualization also reveals that the fund initiated a new position in ACTIVISION BLIZZARD INC (ATVI) with 1.38 million shares at the end of Q4. The fund also increased its holdings in ALIGHT INC (ALIT) by 19% or 1.95 million shares in Q4.

In conclusion, data visualization is a powerful tool that can help analysts reveal patterns and trends in a large dataset. In this post, we utilized this tool to analyze Empyrean Capital Partners' Q3 vs. Q4 2022's 13F holdings, resulting in a clear picture of the changes in the fund's holdings for different stocks. While data visualization is just one technique that can be used for data analysis, it can unlock insights that would be hard to obtain otherwise.