The Rise and Fall of AHL Partners: A Look at Their Q3 2017 vs. Q4 2017 13F Holdings

AHL Partners LLP is a London-based hedge fund founded in 1987 by three former Goldman Sachs executives. Despite experiencing some ups and downs over the years, AHL has managed to stay a prominent name in the industry, managing over $7 billion in assets as of December 2017. In this article, we'll take a closer look at changes in AHL's holdings in the third and fourth quarters of 2017, as reported in their 13F filings.

First, let's define what a 13F filing is. In the United States, all institutional investors with at least $100 million in assets under management must file a Form 13F with the Securities and Exchange Commission (SEC) every quarter. These filings disclose the institutional investor's holdings in U.S.-traded stocks, options, and convertible bonds of publicly traded companies. While the SEC's 13F reports provide a snapshot of holdings as of the end of each quarter, they are filed up to 45 days after the quarter's end date.

So what does AHL's Q3 2017 vs. Q4 2017 13F filings reveal about their portfolio? The most notable change is their increased holdings in iShares Exchange-Traded Fund, EMB. In Q3 2017, AHL held 524,416 shares in the fund, valued at $61,053 thousand. By Q4 2017, those shares had increased by over 42% to reach 750,000, valued at $87,075 thousand. This increase in holdings could indicate AHL's optimism in the future of emerging markets, as EMB tracks the performance of a basket of emerging market bonds.

Another fund that AHL added to in Q4 2017 was Vanguard International Equity Index Fund, VWO. In Q3 2017, AHL held 1,276,313 shares valued at $55,609 thousand. By Q4 2017, they had increased their holdings by 5.2% to reach 1,342,220 shares, valued at $61,621 thousand. VWO offers exposure to international stocks, with a focus on emerging markets, and tracks the performance of the FTSE Emerging Markets All Cap China A Inclusion Index.

Unfortunately, AHL's increased optimism in emerging markets did not translate to success in all areas of their portfolio. In contrast to their increased holdings in EMB and VWO, AHL reduced their stake in iShares iBoxx High Yield Corporate Bond ETF, HYG, by almost 28%. In Q3 2017, AHL held over 1.1 million shares in HYG, valued at $97,725 thousand. By Q4 2017, those holdings had decreased to 795,528 shares, valued at $69,418 thousand. HYG tracks the performance of U.S. dollar-denominated high yield corporate bonds and remains a popular choice for those seeking high yield returns at a relatively low cost.

Finally, it's worth noting AHL's significant increase in holdings in Marriott International, Inc. (MAR) and Six Flags Entertainment Corporation (SIX) in Q4 2017. In Q3 2017, AHL held just under 18,000 shares in MAR, valued at $1,983 thousand. By Q4 2017, those holdings had increased by over 800% to reach 162,984 shares, valued at $22,122 thousand. Similarly, AHL's holdings in SIX increased from 75,323 shares valued at $4,590 thousand in Q3 2017 to 319,397 shares valued at $21,262 thousand in Q4 2017, a 363% jump. MAR and SIX both experienced impressive growth in 2017, with MAR's stock up 39% and SIX's up 37%, so AHL's increased holdings in these companies could reflect their confidence in their respective industries.

In conclusion, AHL Partners LLP made several notable changes to their portfolio from Q3 2017 to Q4 2017, with significant increases in their holdings in EMB, VWO, MAR, and SIX, while reducing their stake in HYG. While it's unclear what drove these changes in AHL's portfolio, it's worth noting that a single quarter's worth of 13F filings may not paint a complete picture of a hedge fund's strategy or the reasoning behind specific investment decisions. Nonetheless, by analyzing these filings, investors can gain some insights into AHL's holdings and potentially find inspiration for their own investment decisions.