Northeast Investment Management's Q3 and Q4 2022 13F Holdings Comparison: What Changed and Why?

Northeast Investment Management released its Q3 and Q4 2022 13F Holdings comparison report, and there are some interesting changes in their holdings that we need to pay attention to. As we can see from the data provided in the CSV file, several holdings were sold, while others were added, and some were held constant.

It's worth noting that the value of the fund's holdings in Q4 decreased by about 6% compared to Q3. However, this does not necessarily mean that the fund is performing poorly. It could mean that the fund managers are taking a more cautious approach, selling out of positions that they believe are overvalued or no longer fit the fund's investment objectives.

Let's take a closer look at some of the holdings that saw significant changes:

Apple Inc (AAPL)

The fund sold 29,547 shares of Apple in Q4, reducing their holdings by 9.5%. The reduction in holdings may signal that the fund managers are taking some profit on one of their top holdings or that they no longer see the stock as a good long-term investment.

Microsoft Corp (MSFT)

The fund sold 9,207 shares of Microsoft in Q4, trimming their holdings by 0.6%. This reduction is quite small and may not be a significant change in the fund's investment strategy.

Visa Inc (V)

The fund added 4,623 shares of Visa in Q4, increasing their holdings by 14.6%. This suggests that the fund managers see Visa as a company with strong growth prospects, and they believe that the stock is currently undervalued.

Alphabet Inc (GOOGL, GOOG)

The fund sold 11,179 shares of Alphabet Inc. Class A (GOOGL) and 1,102 shares of Alphabet Inc. Class C (GOOG) in Q4, reducing their combined holdings by 9.5%. The fund may have sold shares in Alphabet because they see better opportunities elsewhere in the tech sector, or they believe that the stock has reached a point where additional gains are unlikely.

Thermo Fisher Scientific Inc (TMO)

The fund sold 1,820 shares of Thermo Fisher Scientific in Q4, trimming their holdings by 6.5%. Although this reduction was not significant, it does suggest that the fund managers may no longer see as much growth potential in the company.

Amazon.com Inc (AMZN)

The fund sold 12,308 shares of Amazon in Q4, reducing their holdings by 27.2%. This is a significant reduction, and it could signal that the fund managers are concerned about Amazon's future growth prospects or that the stock has reached a valuations level they believe is unsustainable.

Berkshire Hathaway Inc Class B (BRK-B)

The fund added 684 shares of Berkshire Hathaway Inc. Class B in Q4, increasing their holdings by 15.5%. This signals that the fund managers are confident in Warren Buffett's ability to continue generating strong returns for investors.

Union Pacific Corp (UNP)

The fund added 1,909 shares of Union Pacific Corp in Q4, increasing their holdings by 5.4%. This suggests that the fund managers see Union Pacific as a stock with solid growth prospects and believe that it is currently undervalued.

Honeywell International Inc (HON)

The fund added 93 shares of Honeywell International in Q4, increasing their holdings by 28.3%. This suggests that the fund managers believe that Honeywell is a stock worth holding for the long-term and that they see significant growth potential in the company.

Vanguard S&P 500 ETF (VOO)

The fund added a significant number of shares in the Vanguard S&P 500 ETF in Q4, increasing their holdings by 46.7%. This signals that the fund managers see value in holding a diversified portfolio of stocks that represents the overall performance of the S&P 500 index.

JPMorgan Chase & Co (JPM)

The fund added 1,078 shares of JPMorgan Chase & Co in Q4, increasing their holdings by 29%. This suggests that the fund managers see the financial sector as undervalued and believe that JPMorgan Chase is a company with strong growth prospects.

Conclusion

In conclusion, while Northeast Investment Management's Q3 and Q4 2022 13F Holdings comparison report shows that several holdings were sold, others were added, and some were held constant. This does not necessarily mean that the fund is underperforming, but rather that the fund managers are taking a cautious approach and making adjustments to the portfolio as they see fit. As investors, we should take note of these changes and consider whether they align with our own investment objectives.