Vernier Capital's 13F Report: Significant Changes in Holdings for Q2 and Q3 2019

In the world of finance, 13F reports are a crucial tool used by investors to identify the buying and selling activities of institutional investors. These quarterly reports are filed by hedge funds, institutional investors, and other investment managers with over $100 million in assets under management with the Securities and Exchange Commission (SEC). Vernier Capital Partners, LP, a hedge fund with over $500 million in assets under management, recently filed its 13F report for the second quarter of 2019 and the third quarter of 2019. The report provides valuable insight into the hedge fund's investment strategy and highlights some significant changes in its holdings between these two quarters.

Perhaps the most significant change in Vernier Capital's holdings was its decision to completely divest from Amazon. In the second quarter of 2019, the hedge fund held 5,910 shares of the e-commerce giant, with a value of $11,191,000. However, in the third quarter of 2019, the hedge fund had completely sold off all of its Amazon shares. This decision was surprising given Amazon's status as a leader in the e-commerce industry and its long-term growth prospects. It is unclear why Vernier Capital chose to divest from Amazon, but it may have been a strategic decision to free up capital for other investments.

Another stock that Vernier Capital completely divested from was Alphabet Inc., the parent company of Google. In the second quarter of 2019, the hedge fund held 9,930 shares of Alphabet, with a value of $10,752,000. However, in the third quarter of 2019, the hedge fund had sold off all of its Alphabet shares. Again, it is unclear why Vernier Capital chose to divest from Alphabet, but it may have been a move to reduce exposure to the technology sector.

In addition to selling off Amazon and Alphabet, Vernier Capital also sold off its entire position in ASHR, an exchange-traded fund that tracks the performance of Chinese equities. In the second quarter of 2019, the hedge fund held 320,000 shares of ASHR, with a value of $9,011,000. However, in the third quarter of 2019, the hedge fund had completely sold off all of its ASHR shares. It is possible that the ongoing trade war between the US and China was a factor in Vernier Capital's decision to divest from ASHR.

Another notable change in Vernier Capital's holdings was its decision to completely divest from JD.com, one of the largest e-commerce companies in China. In the second quarter of 2019, the hedge fund held 295,713 shares of JD.com, with a value of $8,957,000. However, in the third quarter of 2019, the hedge fund had sold off all of its JD.com shares. JD.com has been facing a number of challenges in recent years, including a scandal involving its founder and CEO, Liu Qiangdong. It is possible that these challenges prompted Vernier Capital to divest from JD.com.

Vernier Capital also sold off its entire position in ICICI Bank Ltd., one of the largest private sector banks in India. In the second quarter of 2019, the hedge fund held 670,000 shares of ICICI Bank, with a value of $8,435,000. However, in the third quarter of 2019, the hedge fund had completely sold off all of its ICICI Bank shares. It is unclear why Vernier Capital chose to divest from ICICI Bank, but it may have been a strategic decision to reduce exposure to the Indian banking sector.

Other stocks that Vernier Capital sold off in the third quarter of 2019 included Alibaba Group Holding Ltd., T-Mobile US Inc., and Tesla Inc. While these changes in holdings may seem significant, it is important to note that hedge funds like Vernier Capital are constantly buying and selling stocks as part of their investment strategy. These changes in holdings are not necessarily an indication of the hedge fund's overall performance or investment strategy.

Overall, Vernier Capital's 13F report for the second quarter of 2019 and the third quarter of 2019 provides valuable insight into the hedge fund's investment strategy and highlights some significant changes in its holdings over this period. While the reasons behind these changes in holdings are not always clear, they do provide some indication of the hedge fund's thinking about various stocks and market sectors. Investors who are interested in following Vernier Capital's investment strategy may wish to take note of these changes in holdings and monitor the hedge fund's future activity.