Analyzing Reilly Herbert Faulkner III's Interesting Changes in Holdings: A Q4 2020 and Q1 2021 13F Filing Review

Investment professionals often use quarterly 13F filings to analyze changes in the holdings of institutional investors. The recent 13F filing of Reilly Herbert Faulkner III for Q4 2020 and Q1 2021 is particularly interesting, as it shows several noteworthy changes in holdings. In this blog post, we will examine these changes and their potential significance.

Let's begin by taking a closer look at the data. The CSV shows the Issuer Name, Option Type, Q4 2020 Shares, Q1 2021 Shares, Q4 2020 Value, Q1 2021 Value, and Chg% for each holding in the portfolio. The first thing that jumps out is the significant decrease in holdings of Apple Inc. (AAPL), with a Chg% of -25.7. This implies that the fund liquidated a large percentage of its position in Apple. It's interesting to note that this comes despite the fact that Apple's stock price increased significantly during this period, reaching an all-time high in January 2021. This suggests that Faulkner III may have perceived Apple to be overvalued at the time.

Another notable change is the increased holdings in Tractor Supply Company (TSCO), with a Chg% of 27.9. Tractor Supply is a retail chain that specializes in rural lifestyle products, and it has performed admirably during the pandemic. The company's stock saw a significant increase in value in 2020, and this increase continued into the first quarter of 2021. Faulkner III's increased holdings in TSCO suggest that he sees the company as a solid investment opportunity, and expects that it will continue to perform well in the near future.

Tootsie Roll Industries (TR) is another holding that saw a significant increase in shares, with a Chg% of 64.6. Tootsie Roll is a candy manufacturer that is known for its classic products like Tootsie Rolls and Blow Pops. The company's stock saw a significant increase in value in early 2021, reaching an all-time high in February. Faulkner III's increased holdings in TR suggest that he expects the company to continue to perform well, and the continued popularity of classic candy products like Tootsie Rolls may contribute to this confidence.

The CSV also shows that the fund eliminated its holdings in certain companies entirely. These include Standex International Corp. (SXI), Spire Inc. (SR), and Exxon Mobil Corp. (XOM). The large Chg% in these cases reflects the fact that Faulkner III liquidated his entire position in these companies during the quarter. It's possible that these sales were driven by concerns about financial performance or negative news about these companies.

It's worth noting that not all of the changes in holdings shown in the CSV may be significant. Some changes may simply reflect rebalancing of the portfolio or other routine actions that investment professionals take. However, some changes - such as the elimination of entire positions or significant increases in shares held - are likely to be more meaningful.

Overall, the changes in holdings shown in the CSV provide a glimpse into the investment strategy of Reilly Herbert Faulkner III during the first quarter of 2021. The increased holdings in companies like Tractor Supply and Tootsie Roll suggest that Faulkner III is bullish on certain market sectors, while the elimination of holdings in companies like Standex International and Exxon Mobil suggests that he has concerns about certain areas of the market. As always in investing, it's important to conduct thorough research and analysis before making any investment decisions based on public data like 13F filings. Nonetheless, the data in this filing provides an intriguing snapshot of the investment approach being taken by a professional investor.