Cabana LLC fund update: The shift to treasury bills in Q4 2022

Cabana LLC's Q3 2022 and Q4 2022 13F filings show significant changes in their holdings. In Q3, the fund held shares in iShares TR and Goldman Sachs ETF TR, but by Q4, they have shifted their focus to treasury bills. In this blog post, we will explore the reasons behind the shift and what it means for Cabana LLC and its investors.

Treasury Bills (T-Bills) are a type of short-term government bonds that mature in less than one year. These bonds are considered low-risk investments, as the government guarantees them. Cabana LLC seems to be betting on T-Bills as the safest option during uncertain times. In Q4, the Cabana LLC fund invested in $13728 thousand worth of T-Bills, a significant increase from the previous quarter's investment of zero.

On the other hand, the fund's Q3 holdings of 204,935 shares in iShares TR have been completely sold, and they no longer hold any shares in the company. iShares TR offers investors a diverse range of exchange-traded funds (ETFs) that cover various asset classes such as bonds, equities, and commodities.

Similarly, Cabana LLC's Q3 holdings of 91,803 shares in Goldman Sachs ETF TR have also been significantly reduced to zero in Q4. Goldman Sachs ETF TRs offer investors exposure to different market sectors and investment themes such as cybersecurity, healthcare, and technology.

The reason for this shift is not explicitly disclosed in the 13F filings, so we can only speculate. One hypothesis is that Cabana LLC is preparing for an economic downturn and is reducing its exposure to individual stocks and ETFs, which are susceptible to market fluctuations. Another possible reason could be that they believe the market is reaching its peak, and it is time to de-risk their portfolio.

In conclusion, Cabana LLC has made significant changes to its holdings in Q4. It has reduced its exposure to stocks and ETFs and invested in treasury bills instead. This shift could be due to their belief that the market is reaching its peak, and it is time to prepare for an economic downturn. Only time will tell if this strategy will pay off for Cabana LLC's investors.