Comparing Capital Fund Management's 13F Holdings in Q3-Q4 2022: Winners and Losers

Investors are always looking for ways to maximize their gains while minimizing risk. One of the most popular methods is to invest in a hedge fund. Hedge funds are investment funds that pool capital from accredited individuals or institutional investors and invest in a variety of assets. Hedge funds are required to file a Form 13F with the Securities and Exchange Commission (SEC) on a quarterly basis. These reports disclose the fund's holdings, including the number of shares and value of each holding. In this article, we'll take a closer look at the 13F filings of Capital Fund Management for Q3-Q4 2022 and analyze the winners and losers.

Amazon.com Inc. (AMZN)

Capital Fund Management started the quarter with 854,300 call options on Amazon, which was then increased to 2,799,500 call options in Q4 2022. The value of the shares also increased from $96,535,000 to $235,158,000, representing an increase of 143.6%. This suggests that the fund is bullish on Amazon's prospects in light of the boom in e-commerce during the pandemic.

Verizon Communications Inc. (VZ)

Capital Fund Management held 877,100 put options on Verizon in Q3, which was then increased to 3,485,500 put options in Q4, representing an increase of 312.4%. The value of the shares also increased from $33,303,000 to $137,328,000. This suggests that the fund is bearish on Verizon's prospects, possibly due to increased competition in the telecom industry.

Alphabet Inc. (GOOGL)

Capital Fund Management had 1,377,678 shares in Alphabet Inc. in Q3, which was then reduced to 1,482,363 shares in Q4, representing a slight decrease of 0.7%. The value of the shares also decreased from $131,774,000 to $130,788,000. This suggests that the fund remains cautiously optimistic about Google's prospects.

Tesla Inc. (TSLA)

Capital Fund Management held 272,200 put options on Tesla in Q3, which was then increased to 994,600 put options in Q4, representing an increase of 69.7%. The value of the shares also increased from $72,201,000 to $122,514,000. This suggests that the fund is bearish on Tesla's prospects, possibly due to the company's supply chain issues and stalled growth.

SPDR Dow Jones Industrial Average ETF (DIA)

Capital Fund Management had 144,700 put options on the SPDR Dow Jones Industrial Average ETF in Q3, which was then increased to 369,200 put options in Q4, representing an increase of 194.3%. The value of the shares also increased from $41,572,000 to $122,327,000. This suggests that the fund is bearish on the prospects of the DJIA, possibly due to market volatility and expectations of correction.

Conclusion

In conclusion, Capital Fund Management made some notable changes to its portfolio in Q3-Q4 2022. The fund's bullish position on Amazon and bearish position on Tesla and Verizon suggest that the fund is actively managing risk and looking for opportunities in the market. Investors can use this information to inform their own investment decisions and potentially generate higher returns while managing risk.