The Rise and Fall of Mercer Capital Advisers' Holdings: A Q2 2021 vs. Q3 2021 Analysis

The financial world is constantly in flux, with market trends and economic indicators shifting almost daily. For investors and fund managers, keeping track of these changes is crucial to making informed decisions and maximizing returns. One tool they use to do this is a 13F filing, which requires institutional investment managers to disclose their quarterly holdings of publicly traded securities. These filings can reveal a lot about a fund's investment strategy, and comparing two filings from different quarters can highlight shifts in that strategy.

In this article, we'll be examining the Q2 2021 and Q3 2021 13F filings from Mercer Capital Advisers, Inc. We'll take a close look at which holdings saw the biggest changes, and what those changes might tell us about Mercer's investment strategy.

Tech Takes a Hit

One notable trend in Mercer's Q3 2021 filings was a decrease in holdings of tech stocks. Apple Inc (AAPL) saw the biggest decline in shares held, with a 5.8% decrease from Q2 2021. Microsoft Corp (MSFT) and Alphabet Inc (GOOGL and GOOG) also saw decreases, although they were less pronounced. This trend could be a result of concerns about overvaluation in the tech sector, as well as uncertainties about regulatory pressures and geopolitical risks.

Retailers and Consumer Goods Remain Steady

In contrast to the tech sector, holdings of retailers and consumer goods companies remained relatively stable. Procter & Gamble Co (PG), Walmart Inc (WMT), and Coca-Cola Co (KO) all saw minor decreases in shares held, but not enough to suggest a significant shift in strategy. This could be seen as a sign of confidence in these companies' long-term prospects, as well as their ability to weather disruptions from the pandemic.

Surprises in Healthcare and Financials

Two sectors that saw unexpected changes in Mercer's Q3 2021 filings were healthcare and financials. Johnson & Johnson (JNJ) and Merck & Co Inc (MRK) both saw significant decreases in shares held, with JNJ down 5.7% and MRK down 6.6%. This may signal a lack of confidence in these companies' pipeline of new drugs and treatments, or concerns about regulatory pressures.

In contrast, Mercer increased its holdings in American Express Co (AXP) and Blackstone Group Inc (BX), by 1.5% and 19.7%, respectively. This could be interpreted as a bet on continued economic recovery, as financials tend to perform well in a growing economy.

The Bottom Line

While it's hard to draw concrete conclusions about a fund's investment strategy based solely on 13F filings, comparing filings from different quarters can reveal interesting trends and patterns. Mercer Capital Advisers' Q3 2021 filing suggests a decrease in tech holdings, stability in retailers and consumer goods, and surprises in healthcare and financials. Whether these trends continue in future filings remains to be seen, but they provide useful insights into Mercer's investment strategy and the broader market landscape.