The Shifting Sands of Wall Street: Comparing Q3 2022 to Q4 2022 13F Holdings

As an investor, it is essential to stay updated on the activities and decisions made by funds and asset managers. With each passing quarter, the shift in these holdings can provide deep insights, allowing you to make more informed decisions. In this blog post, we'll dive into the Q3 vs. Q4 2022 13F holdings from Walleye Capital LLC, a multi-billion dollar hedge fund based in Minnesota.

First, let's review what 13F filings are and why they're important. These filings are submitted by institutional investment managers with over $100 million in assets under management. They describe a fund's investment activity over the previous three months and provide a glimpse into the overall strategy of the fund. This information is published quarterly and is publicly available. By analyzing these reports, investors get an idea of where the smart money is flowing, allowing them to make their own decisions accordingly.

In Q4 2022, Walleye Capital LLC made a lot of changes to their holdings, with large increases and decreases across various sectors. In this blog post, we'll look at some of the most significant changes made by the fund.

The fund's largest holding, SPDR S&P 500 ETF Trust, saw a massive increase from 47,491 shares in Q3 to 303,339 shares in Q4, representing a 583.9% increase. This publicly-traded fund tracks the S&P 500 index, making it an excellent way for investors to gain exposure to a diversified portfolio of US-listed large-cap stocks. Walleye's increased exposure to the S&P 500 suggests the fund is bullish on the overall US economy's growth prospects.

Walleye also increased its stake in Occidental Petroleum Corporation, with the number of shares up from 1,263,043 in Q3 to 1,666,836 in Q4, representing a 37.3% increase. Occidental Petroleum is an American multinational petroleum and natural gas exploration company, making it a cyclical stock. Walleye's increased interest in Occidental Petroleum indicates that the fund believes the energy sector will perform well in the current economic climate.

The fund added several new positions in Q4 2022, including holdings in XRT, the SPDR S&P Retail ETF, with 726,921 shares added to its portfolio. The ETF tracks a basket of US-listed retail stocks, providing exposure to a diversified portfolio of the sector. Johnson Controls International PLC, a multinational conglomerate, was another new addition to Walleye's portfolio, with the fund owning 562,793 shares in Q4.

Another noteworthy addition was Pinduoduo Inc., a Chinese e-commerce company. Walleye increased its stake in the company from 9,544,000 shares in Q3 to 15,699,000 shares in Q4, representing a 107.5% increase. Pinduoduo is an attractive stock for many investors looking to tap into China's fast-growing e-commerce market. Walleye's increased exposure to Pinduoduo shows that the hedge fund managers are bullish on the company's growth prospects.

On the flip side, Walleye decreased holdings in some positions in Q4 2022. For instance, the fund sold off its entire stake in Emerson Electric Co., a multinational corporation that specializes in technology and engineering. Similarly, Walleye Capital LLC also sold its stake in American Airlines Group Inc., with 2 million put options expiring unexercised.

In summary, Walleye Capital LLC made some significant changes to its holdings in Q4 2022. The fund added a considerable number of new positions, including in the S&P Retail ETF and the Chinese e-commerce giant, Pinduoduo Inc. At the same time, it sold its stakes in Emerson Electric and American Airlines Group. The changes in the hedge fund's holdings suggest a bullish outlook for the US economy and energy sector, while also showing an increasing interest in the Chinese market.

As always, it's crucial to remember that these reports are released quarterly and lag behind actual market activities by up to 45 days. Additionally, these reports only show a snapshot of holdings and do not provide insight into the overall strategy of a fund or asset manager. However, analyzing these reports can highlight market trends and help investors make more informed decisions.