Unlocking the Changes in Donald L. Hagan, LLC Q4 2022 vs. Q1 2023: A Comprehensive Analysis

Donald L. Hagan, LLC, a US-based investment advisory firm, recently filed its Q1 2023 13F holdings report. The report shows a significant shift in their portfolio, with holdings in several stocks being reduced or increased. The company has sold off some stocks while adding new ones to its portfolio. In this article, we will analyze the changes in Donald L. Hagan, LLC's Q4 2022 and Q1 2023 holdings, explore the reasons behind these changes, and evaluate their impact on the fund.

Let's start with the fund's top holdings. In the Q4 2022 report, the top five holdings were in SSUS, UPS, SSFI, SPLG, and XLK. However, in the Q1 2023 report, the top holdings were in SSFI, "STRATEGY SHS," UPS, CTSH, and META. The fund's major holding, SSFI, saw a 73.6% increase in holdings from 566,163 shares in Q4 2022 to 958,970 shares in Q1 2023.

The fund's second-largest holding, "STRATEGY SHS," saw a significant reduction in Q1 2023, with 401,471 shares compared to 246,794 in Q4 2022. This drop represents a decline of 74.7%. The sale of these shares could be due to the fund manager's desire to reduce exposure to the stock or to liquidate a portion of the portfolio to free up cash for other investments.

In terms of sectors, the Q1 2023 portfolio reflects a tilt towards Technology (25.70%), Energy (8.73%), and Healthcare (7.75%). This is a significant shift from Q4 2022, where the top sectors were Financials (22.36%), Technology (17.46%), and Energy (13.24%). This change could be an effort to maintain a balance between sectors by reducing exposure to Financials and increasing it in Technology and Energy.

Looking at individual stocks, Google's parent company, Alphabet Inc. (GOOGL), was added to the portfolio, with 17,812 shares worth $1847 thousand. GOOGL is known for its strong fundamentals, including a solid balance sheet, a dominant market position, and a diversified revenue stream. These factors could have influenced the fund manager's decision to invest in Alphabet.

Micron Technology Inc. (MU) and Qualcomm Inc. (QCOM) were also added to the portfolio in Q1 2023. The fund invested heavily in Micron Technology, with 23,681 shares worth $1428 thousand. Qualcomm was a minor addition, with 11,072 shares worth $1412 thousand. Both companies operate in the semiconductor industry and are poised for growth, making them potentially attractive investments.

In terms of sell-offs, the fund divested from several stocks, including National Fuel Gas Co. (NFG), Public Storage (PSA), and CVS Health Corp. (CVS). CVS faced several headwinds during the pandemic period, including a decline in in-person doctor visits and elective procedures, leading to a drop in revenue. This could have influenced the fund manager's decision to divest from the stock.

In conclusion, the changes in Donald L. Hagan, LLC's Q4 2022 and Q1 2023 holdings reflect the changing investment landscape and the fund manager's investment strategy. With a shift in sectors and the addition of technology and energy stocks, the manager seems to be moving towards a more balanced portfolio. The sell-off of underperforming stocks could be an effort to free up cash for new investments. Overall, the fund's strong fundamentals and diversified portfolio make it an attractive option for investors.