Analyzing Corvex Management's Q3 2022 vs. Q4 2022 13F Holdings: Changes and Implications

Corvex Management LP, a multi-strategy hedge fund, has released its Form 13F for the third and fourth quarters of 2022, highlighting its stock holdings as of September 30, 2022, and December 31, 2022, respectively. The 13F form provides insights into the significant stock positions and changes made by the fund's portfolio managers in the preceding quarter.

In this blog post, we will analyze the changes in Corvex Management's Q3 2022 and Q4 2022 holdings and evaluate the implications of these moves. In particular, we will focus on the fund's top holdings, significant additions and reductions, and assess the fund's investment approach.

Top Holdings

Corvex Management's top five holdings in Q4 2022 remain unchanged from the previous quarter. MDU Res Group Inc (MDU) continues to be the fund's largest holding, with 10.1 million shares worth over $300 million. The second-largest holding is MGM Resorts International (MGM), with a total of 6.6 million shares valued at $224 million. Activision Blizzard Inc (ATVI) is the third-largest holding, with 2.9 million shares worth $222 million.

Fomento Economico Mexicano S (FMX) and California Res Corp (CRC) are the fourth and fifth-largest holdings, respectively, both experiencing an increase in their values compared to the previous quarter.

Notably, the fund reduced its holdings in Microsoft Corp (MSFT) by 17.3%. MSFT has been a top ten holding for Corvex Management, but the fund reduced its position by 88,545 shares.

Significant Additions

Corvex Management made several significant acquisitions in Q4 2022, the most substantial being its call-option purchase of 350,000 shares in the Invesco QQQ Trust (QQQ). The position is valued at $79.9 million, making QQQ the fourth-largest holding for the fund.

Crown Holdings Inc (CCK) is another company that Corvex Management added to its portfolio in Q4 2022, with a value of $73.5 million. The fund purchased 894,861 shares in the company.

Implications

Overall, Corvex Management's Q4 2022 13F filing indicates a shift towards technology and communication services companies. The majority of the fund's new holdings are centered around these industries, with Invesco QQQ Trust as its top addition.

Moreover, the acquisition of Crown Holdings Inc and the increased investments in Fomento Economico Mexicano S and California Res Corp highlight the fund's interest in industrial and consumer goods companies.

Conversely, the reduction in Microsoft Corp's holdings suggests that the fund is bearish on the stock. Recent news regarding the company's deferred revenue forecast and rising costs may have some analysts worried about Microsoft's future performance.

In conclusion, Corvex Management's Q3 2022 vs. Q4 2022 13F filings provide valuable insights into the fund's investment strategy and its managers' views on each company's future. Investors and market watchers can use this information to make informed decisions and evaluate trends in the hedge fund's approach to investment.