How Granite Investment Advisors' 13F Holdings Shifted in Q3 2021

As the third quarter of 2021 came to a close, Granite Investment Advisors, LLC released its 13F holdings report detailing its portfolio changes from the previous quarter. With some notable shifts in holdings, let's take a closer look at how the asset management firm's portfolio has evolved.

Technology Sector

Tech stocks saw a mixed bag of changes in Granite's portfolio from Q2 to Q3. While Granite sold off shares in Amazon, the asset manager increased positions in Oracle, Microsoft, and Alphabet. However, the Technology Select Sector SPDR Fund saw the biggest increase in shares by volume, reflecting a continuation of Granite's bullish attitude towards tech.

Healthcare

Granite sold off positions in several healthcare holdings, with Johnson & Johnson, Bristol-Myers Squibb Co and McKesson Inc all experiencing reductions in shares. UnitedHealth Group Inc also saw a dip in the number of shares held by Granite. However, despite this overall reduction, the healthcare sector remained reasonably stable within the portfolio.

Financials

In the financial sector, Granite sold shares in Wells Fargo & Co., Bank of America, and Capital One Financial Corp. Despite these reduced holdings, Morgan Stanley saw a 3.9% increase in the number of shares held by the asset manager. Honeywell International also stood out as the single largest pick-up in shares for Granite, reflecting a continued bet on the firm's long-term impact.

Consumer Staple and Discretionary Sectors

Consumer staple stocks, including Proctor & Gamble and Coca-Cola, saw a decrease in positions held. Meanwhile, consumer discretionary holdings Lowe's Companies, Home Depot, and TJX Co. all saw stable positioning. Netflix.Com Inc, saw a slight increase in the number of shares held, while Disney, Walt & Co saw a similar slight reduction.

Energy

Among the biggest changes in Granite's portfolio, the energy sector saw a significant shift in holdings. Nextera Energy Inc and Kinder Morgan, Inc. (DE) Class both saw an upswing in the number of shares held by Granite. However, General Motors and FedEx Corporation both saw double-digit reductions. Interestingly, the asset manager bought into Quanta Services Inc, indicating a faith in the future growth of the US construction industry.

Conclusion

Granite Investment Advisors' portfolio saw several notable shifts in Q3 2021. While sectors like technology and energy saw some characteristically big moves, others like healthcare remained stable. The asset manager's decisions to sell off shares in Johnson & Johnson and Wells Fargo & Co. may raise questions, but only time will tell if these bets pay off. Their continued confidence in technology touches upon a view shared by many investors of the durability of the sector, with bullish picks in the form of Alphabet, Microsoft and the Technology Select Sector SPDR Fund. It's clear that Granite remains committed to their investing strategy and timing of market shifts.