Investment Analysis: Blue Edge Capital's Q3 vs. Q4 2022 13F Holdings

Blue Edge Capital, LLC is a well-known investment management firm that manages roughly $20 billion in assets under management. They operate as a hedge fund, with the primary objective of generating positive returns by investing in a diversified portfolio of equities. As part of their regulatory requirements, they file a quarterly 13F with the Securities and Exchange Commission (SEC), disclosing their holdings. In this blog post, we analyze the changes in their Q3 2022 vs. Q4 2022 13F holdings.

Vanguard Takes a Hit

The largest drop in holdings from Q3 to Q4 2022 came from Vanguard Value (VTV). Their holdings decreased by 1.5%, with Blue Edge Capital selling off 5,214 shares. Similarly, Vanguard Growth (VUG) saw a slight drop of 0.9%, as the firm sold off 1,542 shares. Both holdings have been performing well in 2022, so it will be interesting to see if Blue Edge Capital is taking a more cautious approach in the face of potential market volatility.

iShares Takes Over

The largest increase in holdings from Q3 to Q4 2022 came from iShares Core MSCI Europe (IEUR), with a 4.0% increase, due to the purchase of 12,158 shares. This signals the firm's bullish outlook on the European markets, which have been lagging behind other equities in 2022. Another iShares holding, iShares S&P 500 Growth (IVW), saw a 7.5% increase in holdings, likely due to the continued growth of tech stocks such as Apple and Microsoft.

Bonds Steal the Show

Blue Edge Capital's holdings in fixed income securities saw significant changes from Q3 to Q4 2022. The largest increase in holdings was in iShares 7-10 Year Treasury Bond (IEF), with a whopping 51.0% increase, due to the purchase of an additional 43,701 shares. This suggests that the firm is taking a more conservative approach, as IEF is a long-term bond hold that is seen as a safe haven for investors during periods of market uncertainty.

Similarly, the firm increased their holdings in iShares 3-7 Year Treasury (IEI) by 7.1% and Vanguard Short Term Corporate Bond (VCSH) by 33.7%. These fixed income securities have seen renewed demand from investors in anticipation of a potential economic downturn.

Stock Picks

Blue Edge Capital made some interesting moves in their stock holdings as well. They increased their holdings in Target (TGT) by 69.7%, making it their largest stock holding in Q4 2022. They also purchased an additional 6,114 shares of Caterpillar (CAT), a company that has rebounded significantly since the early days of the pandemic.

Other notable stock holdings include Microsoft (MSFT), which saw a 3.1% increase in holdings, and BlackRock (BLK), which saw a 29.2% increase. Amazon (AMZN) was the only stock holding to see a significant decrease in holdings, dropping 25.6%.

Closing Thoughts

Blue Edge Capital's Q3 vs. Q4 2022 13F holdings showed some interesting movements across their portfolio. While their holdings in Vanguard products decreased, their holdings in iShares products and fixed income securities increased significantly. It will be interesting to see how their portfolio performs in the upcoming months, especially given the continued uncertainty in the global markets.