Analyzing Front Barnett Associates LLC's Q3 to Q4 2022 13F Filings: Insights on Their Investment Decisions

Front Barnett Associates LLC is an investment management firm that provides specialized financial services to a wide range of clients, both individual and institutional. One of the key tools they use to manage their portfolio of investments is the 13F filings that companies are required to file with the SEC. These filings disclose the holdings of institutional investment managers within 45 days of the end of a quarter. The following post will analyze a 13F filing for Front Barnett Associates LLC comparing their Q3 2022 to Q4 2022 holdings.

According to the 13F filing, Front Barnett Associates LLC reduced their holdings in most of the companies in their portfolio, with only a few exceptions. The total number of shares they owned decreased from 2,651,737 in Q3 2022 to 2,590,102 in Q4 2022, which is a 2.32% decrease. The total value of their holdings decreased from $440,523,000 in Q3 2022 to $405,611,000 in Q4 2022, which is a 7.93% decrease.

One of the largest holdings in Front Barnett Associates LLC's portfolio is Apple Inc. (AAPL), but the fund reduced its position by 7%, from 717,343 shares in Q3 2022 to 709,626 shares in Q4 2022. The fund also decreased its holdings in Thermo Fisher Scientific Inc. (TMO) by 7.7%. Additionally, the fund decreased its holdings in Lowe's Companies Inc. (LOW) by 5.2%.

However, some of the fund's holdings saw an increase in their position during Q4 2022. Chevron Corporation (CVX) saw a significant increase in their position, from 164,557 shares in Q3 2022 to 163,235 shares in Q4 2022, which is a 23.9% increase. JPMorgan Chase & Co (JPM) also saw an increase in their position, from 201,394 shares in Q3 2022 to 201,295 shares in Q4 2022, which is a 28.3% increase. Union Pacific Corporation (UNP) saw an increase in their position, from 127,961 shares in Q3 2022 to 127,684 shares in Q4 2022, which is a 6.1% increase.

Among the 13F holdings, the fund's largest decrease in position was in Amazon.com Inc. (AMZN) by 25.5%, followed by The Walt Disney Company (DIS) at 18.8%. However, not all of the fund's losses were as significant. For example, International Flavors & Fragrances Inc. (IFF) saw a decline of 11.1%, while Salesforce.com Inc. (CRM) saw a modest 10.1% decline.

In general, Front Barnett Associates LLC's investment decisions in Q4 2022 indicated that they were less interested in technology and more interested in traditional companies that had the potential for solid growth strategies. The fund's interest in Chevron and JPMorgan Chase & Co. are a clear indication of this. These two stocks could be interpreted as representing the fund's bullish view on the U.S. economy, as well as their confidence in the banking and energy sectors, which could be helped with economic growth.

In contrast, the fund's decreasing positions in Amazon, Disney, and International Flavors & Fragrances Inc. could be because the fund saw these companies' future earnings or growth opportunities as uncertain or weak. The fund's bullishness on traditional stocks suggests they are downplaying growth and emphasizing value, at least for the time being.

In general, it is important to remember that 13F filings, such as the one filed by Front Barnett Associates LLC, represent a snapshot of a portfolio manager's holdings at a specific point in time (in this case, the end of Q3 2022 and Q4 2022). It is possible that the firm has made changes to its holdings since then or has a completely revised outlook. Additionally, it is not always clear what motivated specific investment decisions. So while the 13F filings do provide some insight into a fund's holdings, it would be unwise to base any investment decisions solely on one of these filings.