SouthernSun's Q3 2022 vs. Q4 2022: A Comparative Analysis of Top Fund Holdings

As an investor or portfolio manager, keeping a tab on the movements of hedge funds, institutional investors, or asset managers can be a valuable tool to inform your investment decisions. One such investment manager, SouthernSun Asset Management, LLC recently released its 13F filings for the third and fourth quarters of 2022, containing a list of its top holdings. In this blog post, we will analyze and compare SouthernSun's Q3 2022 vs. Q4 2022 holdings and highlight the changes that took place in the fund.

Introduction

SouthernSun Asset Management, LLC is a Memphis-based investment firm that specializes in constructing portfolios of undervalued companies that have sustainable business models. The firm invests in a range of sectors like energy, healthcare, technology, and consumer goods, and its clients include high net worth individuals, institutional investors, and other professional investors. SouthernSun recently released its 13F filings, which revealed the fund's top holdings for Q3 2022 and Q4 2022. These filings provide valuable insights into the fund's investment strategies and can aid investors in making informed decisions based on the changes in the fund's holdings.

Main Body

Comparing SouthernSun's Q3 2022 and Q4 2022 13F filings, we can see that the fund made some significant changes to its top holdings. In Q3 2022, SouthernSun's top three holdings were Darling Ingredients Inc. (DAR), Univar Solutions USA Inc. (UNVR), and Enerpac Tool Group (EPAC), which accounted for 4.4%, 4.1%, and 4.0% of the fund's portfolio, respectively. However, by the end of Q4 2022, the fund's top holding shifted to Darling Ingredients Inc., which accounted for 5.2% of the portfolio. SouthernSun increased its stake in Darling Ingredients from 940,575 shares in Q3 2022 to 1,025,184 shares in Q4 2022, representing a 9% increase in the number of shares held.

Univar Solutions USA Inc., which was the fund's second-largest holding in Q3 2022, saw a reduction in the number of shares held in Q4 2022. SouthernSun decreased its stake in Univar Solutions from 1,883,305 shares in Q3 2022 to 1,468,670 shares in Q4 2022, representing a 22% decrease in the number of shares held. The decrease in the holdings can be attributed to the decline in the price of Univar Solutions shares, with the stock losing 9.1% during the period.

Enerpac Tool Group, which was SouthernSun's third-largest holding in Q3 2022, maintained the third position in Q4 2022, accounting for 4.2% of the portfolio. However, SouthernSun reduced its stake in Enerpac Tool Group from 1,853,760 shares in Q3 2022 to 1,643,881 shares in Q4 2022, representing a 11.3% decrease in the number of shares held. Despite the reduction in the number of shares held, the stake in Enerpac Tool Group remained a significant part of the fund's portfolio.

Apart from these highlights, the SouthernSun's filings revealed other changes in holdings. Ingevity Corp (NGVT), Stepan Co (SCL), and Belden Inc (BDC) saw an increase in the number of shares held; meanwhile, Clean Harbors Inc. (CLH) saw a reduction in the shares held by the fund. Additionally, the filings contain some new holdings, like Boot Barn Holdings Inc (BOOT) and Malibu Boats Inc (MBUU) for Q4 2022.

Conclusion

SouthernSun Asset Management's Q3 2022 vs. Q4 2022 filings provide investors with valuable insights into the fund's investment strategies and changes that took place in its top holdings. The filings show that the fund made some significant changes to its top holdings, with Darling Ingredients Inc., Univar Solutions USA Inc., and Enerpac Tool Group being the top three holdings in Q3 2022. However, by the end of Q4 2022, Darling Ingredients Inc. emerged as the fund's top holding, while Univar Solutions saw a reduction in the number of shares held. Despite the changes and fluctuations, we can see that SouthernSun Asset Management remains focused on investing in undervalued companies with sustainable business models.