Hodges Capital Management Inc. Q3 vs. Q4 2022 13F Holdings: A Deep Dive into the Changes

Hodges Capital Management Inc. recently filed its Q3 and Q4 13F holdings with the SEC, revealing significant changes in its portfolio holdings. Though the data only covers a three-month period, the changes indicate interesting trends in the fund manager's investment strategy. In this article, we'll analyze the data and highlight some of the key takeaways from the report.

One of the most notable changes in holdings is Texas Pacific Land Corporation (TPL), with an increase of 66.9% in shares and 67.7% in value. Matador Resources Company (MTDR) also saw a significant increase of 114.4% in shares and 114.8% in value. Entertainment wire and cable manufacturer Encore Wire Corp (WIRE) showed an 87.5% increase in shares and 87.5% in value. Interestingly, Cleveland-Cliffs Inc. (CLF) saw a 119.4% increase in shares and 119.3% in value.

While some holdings increased significantly, other stocks saw an even larger jump in holdings. Eagle Materials Inc. (EXP) showed a whopping increase of 146.2% in shares and 146.1% in value. SunOpta Inc. (STKL), a company that focuses on healthy organic food and beverages, saw the largest increase in shares at 269.9% and 269.6% in value. Hilltop Holdings Inc. (HTH) also saw a massive increase in shares and value, at 162.9% and 162.5%, respectively.

On the other hand, a number of stocks saw a decrease in holdings. ACADIA Pharmaceuticals Inc. (ACAD), a biopharmaceutical company, saw a drop of 99.9% in shares and 99.9% in value. The firm completely exited their position in Rackspace Technology Inc. (RXT), as well as Golar LNG Partners LP (GMLP). The fund also reduced its stake in Sprouts Farmers Market Inc. (SFM), decreasing its shares by 45.8% and reducing its value by 44.7%.

Finally, the quarter saw the entry of new stocks into the fund's portfolio. The three largest new positions were Kimberly-Clark Corporation (KMB), with 300,016 shares worth approximately $45 million, followed by Thermo Fisher Scientific Inc. (TMO) at 94,373 shares worth $39.6 million, and Merck & Co. Inc. (MRK) with 43,399 shares worth approximately $4.8 million.

In conclusion, Hodges Capital Management Inc.'s filing of Q3 and Q4 2022 13F holdings report revealed some major changes in their investment strategy. The fund has increased its holdings in some companies, while reducing or exiting its positions in others. This report also indicates that the firm made some bold new bets by adding new positions, which shows the evolving nature of its investment motives, style, and tactics. These changes provide an interesting insight into how Hodges Capital Management Inc. is managing its portfolio and making investment decisions.