FrontFour Capital Group LLC Q2 2019 vs. Q3 2019 13F Holdings Comparison

FrontFour Capital Group LLC, an American investment management firm, recently released its 13F filing for Q3 2019, indicating the changes in holdings for the quarter. As per the filing, the company reduced its investments in Marriott Vacations Worldwide Corp. and MDC Partners Inc. while increasing its stake in Medley Capital Corp. The company also exited from its positions in Hilton Grand Vacations Inc., Berry Global Group Inc., and Abercrombie & Fitch Co., among others.

In this article, we will discuss in detail the changes in holdings for FrontFour Capital Group LLC, offering insights into the company's investment strategy and market outlook.

Marriott Vacations Worldwide Corp.

According to the 13F filing, FrontFour Capital Group LLC sold 33% of its holdings in Marriott Vacations Worldwide Corp., reducing its investment from 96,390 shares in Q2 2019 to 62,920 shares in Q3 2019. The value of the investment decreased from $9.2 million to $6.5 million, a drop of almost 30%.

Marriott Vacations Worldwide Corp. is a leading vacation ownership company that develops, markets, and sells vacation ownership and related products. The company's stock has been volatile in recent months, with prices fluctuating between $81 per share and $134 per share. The stock closed at $100.22 per share on September 30, 2019, down 25% from its 52-week high of $134.21.

MDC Partners Inc.

FrontFour Capital Group LLC reduced its stake in MDC Partners Inc. by 12%, selling 292,167 shares during the quarter. The company now holds 2,250,736 shares, down from 2,545,903 shares in Q2 2019. The value of the investment decreased from $6.4 million to $6.3 million, a drop of 1%.

MDC Partners Inc. is a marketing and communications company that provides advertising, branding, and digital and social media marketing solutions. The company's stock has had a rough year, with prices plummeting from $11 per share in September 2018 to $2.87 per share on September 30, 2019.

Medley Capital Corp.

FrontFour Capital Group LLC increased its stake in Medley Capital Corp. during the quarter, buying an additional 163,248 shares. The company now holds 1,796,496 shares, up from 1,633,248 shares in Q2 2019. The value of the investment increased from $3.8 million to $4.2 million, a rise of 10.7%.

Medley Capital Corp. is a closed-end investment company that focuses on lending to privately-held middle-market companies. The company's stock has been stable in recent months, with prices ranging between $2.45 per share and $3.73 per share. The stock closed at $2.46 per share on September 30, 2019.

Other Exits

FrontFour Capital Group LLC exited from several other positions during the quarter, including:

- Hilton Grand Vacations Inc.: The company sold its entire stake of 48,166 shares during the quarter, valued at $1.5 million.

- Berry Global Group Inc.: The company sold its entire stake of 28,681 shares during the quarter, valued at $1.5 million.

- Abercrombie & Fitch Co.: The company sold its entire stake of 9,588 shares during the quarter, valued at $154,000.

Market Outlook

FrontFour Capital Group LLC's 13F filings offer valuable insights into the company's investment strategy and market outlook. Based on the recent changes in holdings, it appears that the company is taking a cautionary approach in the current market conditions.

The US stock market has experienced significant volatility in recent months, with trade tensions and geopolitical uncertainty weighing on investor sentiment. The S&P 500 index has declined 1.7% over the past year, while the Dow Jones Industrial Average has risen 0.8%.

In this context, it is not surprising to see investment firms like FrontFour Capital Group LLC adjust their portfolios to reflect a more guarded approach to risk. However, it will be interesting to see how the company's investments will perform in the next quarter, given the ongoing macroeconomic uncertainties.