Snow Capital Management Q1 2021 vs. Q2 2021: A Deep Dive Into Changes in Holdings

As investors, it's always fascinating to know how fund managers go about their investment strategies. 13F filings can provide insights into these strategies and give investors a picture of what managers are buying and selling. In this post, we will take a closer look at Snow Capital Management's (SCM) Q1 and Q2 2021 13F holdings and compare the changes to gain insights into their investment strategy.

SCM's Q2 2021 portfolio was valued at $499.6 million, representing a quarter-over-quarter (QoQ) change of 0.29%. Over the same period, the S&P 500 index increased by 8.55%. SCM's top holdings in Q2 2021 were WESCO International (WCC), Commercial Metals Company (CMC), and JP Morgan Chase (JPM).

WESCO International (WCC) remains SCM's top holding, and the fund added 8.52% in shares, resulting in a QoQ value increase of 23.3%. Notably, SCM increased its holdings in CMC by 12.2%, while reducing its holdings of JPM by 0.8%.

In terms of sector allocation, SCM maintained its focus on the financial and industrial sectors, which together make up over 50% of the fund's Q2 2021 holdings. Interestingly, the fund reduced its exposure to the financial sector, which decreased by 2.71% QoQ, while increasing its stake in the industrial sector by 2.79%.

Some of the significant additions in SCM's portfolio during Q2 2021 include Alliance Data Systems Corp (BFH), CineMark Holdings (CNK), and B2Gold Corp (BTO.TO). SCM increased its holdings of BFH by 24.9%, CNK by 456.1%, and BTO.TO by 2.1%, respectively.

On the other hand, some of the significant companies that SCM exited during Q2 2021 include Intel Corp (INTC), NetApp Inc (NTAP), and Photronics Inc (PLAB), among others. SCM completely exited its position on Intel Corp and NetApp Inc, while reducing its holdings in Photronics Inc by 8%.

Finally, there were some interesting movements in SCM's portfolio in Q2 2021. For instance, Lumentum Holdings Inc (LITE) was a new addition to the portfolio, with SCM purchasing 142,308 shares. Similarly, Vera Bradley Inc (VRA) saw a massive increase in shares by 334.2%, while Pioneer Natural Resources (PXD) and Vishay Intertechnology (VSH) saw a marginal increase of 2.4% and 23.8%, respectively.

Overall, SCM's Q2 2021 holdings revealed a shift in focus from the financial sector to the industrial sector. Furthermore, SCM added to some of its existing holdings while adding new companies to the portfolio. By analyzing the fund's 13F holdings and changes QoQ, investors can gain insights into SCM's strategy and potentially use it to make informed investment decisions.