Investment Holding Changes in Q2 and Q3 2022: What It Means for Alphasimplex Group

Alphasimplex Group, LLC, a Boston-based hedge fund, recently released its Q3 2022 holdings report. The report shows the fund's investment strategies and reveals the stocks it has bought and sold during Q2 and Q3 2022. This report is required to be filed by any institutional investment manager that manages over $100 million in assets, under Section 13F of the Securities Exchange Act of 1934.

In comparing its Q2 and Q3 2022 holdings, Alphasimplex Group increased its stock positions in several companies. The fund notably decreased its position in some companies and even sold its entire holdings in others. Here is a closer look at some of the significant changes in the Alphasimplex Group's holdings report and what they mean for the fund's investment strategy.

Increased Positions

Alphasimplex Group increased its position in Fastenal Co (FAST) by 64.3%, which may reflect the hedge fund's beliefs in the company's current operations or the prices at which the shares trade. The fund also increased its stock position in UnitedHealth Group Inc (UNH) by 14.8%, suggesting that the fund sees good potential in the healthcare giant. Tesla Inc (TSLA) is another notable stock where Alphasimplex Group slightly increased its holdings.

New Positions

Alphasimplex Group initiated positions in Lakeland Bancorp (LBAI), which represents its confidence in the bank's long-term growth potential. The hedge fund also started buying shares of Primo Water Corporation (PRMW.TO), which is a Canada-based company that sells water dispensers, flavored beverages, and purified bottled water. The addition of these new positions indicates a positive outlook on the companies' prospects and shows the fund's research and monitoring.

Decreased Positions

The fund sold its entire holdings in DXC Technology Co (DXC), Neenah Inc (NP), and several other companies. It reduced its positions in MMC and T-Mobile US Inc (TMUS) by 17.4% and 15.4%, respectively. However, despite the overall reduction in positions, Alphasimplex Group still holds a sizable stock position in these companies. The reduction in holdings may indicate that the hedge fund sees better investment opportunities elsewhere.

Sold Out Positions

Alphasimplex Group sold its entire holdings in some companies, including Catchmark Timber TR Inc (CTT), Sunoco LP (SUN), and CMX Materials (CCMP). The decision may reflect the hedge fund's lack of confidence in these companies' long-term growth prospects, which is a significant indicator for other investors.

Conclusion

Alphasimplex Group's Q3 holdings report reveals its investment strategies and positions for Q2 and Q3 2022. The hedge fund made several changes to its portfolio, including new positions, increased and decreased positions, and sold-out positions. The changes indicate the fund's confidence or lack of confidence in the companies' growth prospects or the share prices. Nonetheless, it's essential to note that past performance doesn't guarantee future success, and it's wise to do comprehensive research on a company or sector before making any investment decisions.