Arrowgrass Capital Partners' Q3 2019 vs. Q4 2019: A Comprehensive Analysis of 13F Holdings

In the fast-paced world of investment, Hedge Funds are known to be some of the most influential players, and Arrowgrass Capital Partners (Us) LP is no different. From the recent release of their Q3 2019 vs. Q4 2019 13F Holdings, there have been a series of interesting changes in the fund's holdings. In this article, we will dive into those changes and explore some possible reasons behind them.

Let's start by examining the most significant changes in Arrowgrass Capital Partners' holdings.

Major Changes in Arrowgrass Capital Partners' Holdings

1. ALPHABET INC: Arrowgrass Capital Partners' stake in Alphabet Inc. has significantly decreased by 31.1% from Q3 to Q4. The fund sold 16,000 shares of Alphabet's class C shares, contributing to a decrease in the company's overall value.

2. VISA INC: Arrowgrass Capital Partners reduced its stake in Visa Inc. by 12.6% during Q4, selling a total of 37,500 shares of put options on Visa's stock. Even though the fund kept some of its investment in Visa, the significant reduction in shares indicates a decrease in confidence towards the stock.

3. APPLIED MATERIALS INC: Arrowgrass Capital Partners' holding in Applied Materials Inc. also experienced a massive drop of 41.8% during Q4. The fund sold 145,000 shares of put options, contributing to a decrease in the stock's value.

4. ABBVIE INC: Arrowgrass Capital Partners reduced its holding in AbbVie Inc. by 28% in Q4, selling a total of 62,500 shares of put options on the company's stock. This move suggests a decrease in confidence in AbbVie's stock among Arrowgrass Capital Partners.

5. AMERICAN AIRLINES GROUP INC: Arrowgrass Capital Partners' investment in American Airlines Group Inc. saw a significant decline of 46.8% during Q4. The fund sold 150,000 shares of put options on the company's stock, indicating a bearish sentiment towards the stock.

6. SUNDIAL GROWERS INC: Arrowgrass Capital Investment's investment in Sundial Growers Inc. experienced a massive drop of 37.2% after the fund sold over 1.1 million shares of the company's stock. This move could be from a realization that Sundial Growers Inc. is not doing well in the market.

The Reason Behind Arrowgrass Capital Partners' Holdings Changes

Arrowgrass Capital Partners' decision to reduce its holding or sell some stocks options offered interesting insights into their assessment of the market. Such changes can occur due to various factors, including market risk, company performance, cash flow requirements, or even portfolio optimization.

For instance, the significant drop in Arrowgrass Capital Partners' overall holdings in Alphabet Inc. and AbbVie Inc. could indicate nervousness about the companies' future performance. Additionally, since Arrowgrass Capital Partners trimmed its holding in Visa Inc. and American Airlines Group Inc., it could suggest that the fund does not see those stocks as profitable or attractive options anymore.

On the other hand, the reduction in Arrowgrass Capital's holdings in Applied Materials Inc., SUNDIAL GROWERS INC, and Sundial Growers Inc. could indicate their perception of those markets' longer-term health.

Final Thoughts

In conclusion, Arrowgrass Capital Partners' Q3 2019 versus Q4 2019's 13F holdings revealed a series of interesting stock options reductions that can give an investor insights into how the fund views the market. Although the reasons behind the changes cannot be accurately speculated, the actions of such well-established Hedge Fund are enough to cause ripples in the investment world. Therefore, it is always crucial to keep an eye on the holdings of significant players like Arrowgrass Capital Partners to plan your investment strategy accordingly.