The Power of Holding Strong: A Look at Marcato Capital's Q3 vs. Q4 2019 Investment Changes

Marcato Capital Management LP, a multi-billion dollar value-oriented investment firm, is known for holding strong and making strategic investment moves. In this blog post, we'll take a deep dive into their Q3 vs. Q4 2019 13F holdings comparison and dissect the changes in their portfolio.

First, let's understand what a 13F filing is. It is a quarterly report filed by institutional investment managers that discloses their equity holdings. This report is highly anticipated by investors and analysts as it gives insights into the investment strategies and stock picks of renowned investment firms.

Now, let's take a closer look at the changes in Marcato Capital's holdings. In Q3 2019, they held 2,779,991 shares of FGL Holdings, a financial services company, valued at $2,571,000. However, in Q4 2019, they decreased their holdings by a whopping 53.3%, holding only 779,991 shares valued at $1,201,000. This could be due to various reasons such as poor financial performance, change in the company's management, or the need to free up capital for other investments.

Moving on to IAC InteractiveCorp, an American holding company, Marcato Capital held 395,983 shares valued at $86,312,000 in Q3 2019. However, in Q4 2019, their holdings came down to 0. Yes, you read that right, 0 shares. This indicates that they no longer consider IAC InteractiveCorp as a valuable investment for their portfolio.

Similarly, Terex Corp, a diversified global manufacturer, saw a complete exit by Marcato Capital in Q4 2019. In Q3 2019, they held 1,300,748 shares valued at $33,780,000, but in Q4 2019, they did not hold even a single share.

Finally, let's talk about DXC Technology Co, a B2B IT service company. Marcato Capital held 150,000 call options valued at $4,425,000 in Q3 2019, but by Q4 2019, they did not hold any call options. A call option is a type of financial contract that gives the holder the right, but not the obligation, to buy an asset at a predetermined price within a specific period.

In conclusion, Marcato Capital Management LP's Q3 vs. Q4 2019 13F Holdings Comparison reflects their firm belief in holding strong and making strategic investment moves. Although they sold off significant portions of their holdings in FGL Holdings, IAC InteractiveCorp, and Terex Corp, it does not necessarily indicate that these companies are not good investments for other firms. It all depends on the investment strategy and objectives of each firm. Investing is not a one-size-fits-all approach, and each investor has unique needs and goals that they must cater to.