The Changing Tides of Soroban Capital Partners LP: A Q3 vs. Q4 2022 Holdings Comparison

Soroban Capital Partners LP is a hedge fund that invests in public equity and fixed income markets across the globe. With assets under management totaling approximately $13.7 billion, the fund has a reputation for making bold bets on high-growth companies and industries.

In this article, we will compare Soroban's Q3 2022 holdings with its Q4 2022 holdings, focusing on the changes that took place in some of its most significant holdings.

Before we dive into the details, it's worth noting that the fund's top holdings in Q4 2022 were CSX Corp, Cenovus Energy Inc, and Union Pacific Corp. In terms of sector allocation, Soroban had the highest exposure to industrials, followed by energy and technology.

Now, let's take a closer look at some of the changes that took place between Q3 and Q4.

Tech

Soroban's Q4 2022 holdings in tech were dominated by Microsoft Corp and Visa Inc, with both companies holding strong positions in the top ten holdings. However, the fund reduced its holding in Microsoft by 7.5%, shedding approximately 491,375 shares between Q3 and Q4. On the other hand, Visa saw a slight uptick in holdings, with Soroban increasing its position by 2.6%.

Amazon.com Inc and Alphabet Inc (both classes) saw significant declines in holdings, with Soroban reducing its position in Amazon by 25.7% and its position in Alphabet by 14%. Interestingly, the fund sold off its entire position in Yum Brands Inc and Mastercard Incorporated.

Industrials

Soroban's Q4 holdings in industrials were led by CSX Corp and Union Pacific Corp. The fund added approximately 47,000 shares of CSX Corp and 47,000 shares of Union Pacific Corp between Q3 and Q4 2022. However, Soroban reduced its position in Lowes Cos Inc by a whopping 43.4% between Q3 and Q4 2022, selling approximately 1,498,893 shares.

Energy

Soroban maintained its position in Cenovus Energy Inc, a Canadian oil and gas company, between Q3 and Q4 2022, holding approximately 51,957,862 shares in the firm. The fund also saw an increase in holdings in Suncor Energy Inc New, adding approximately 17,174 shares to its position. However, the fund's position in United States Steel Corp. dropped sharply, with Soroban reducing its holding by 79.6%.

Conclusion

Overall, Soroban Capital Partners LP's Q3 vs. Q4 2022 holdings tell an interesting story of a fund that is constantly reshaping its portfolio. The reduction in holdings in Amazon, Alphabet, Yum Brands, and Mastercard may indicate a shift in focus away from these stocks. On the other hand, the fund's increased holdings in Visa and Suncor Energy suggest a bullish outlook on these companies.

Only time will tell if these bets pay off, but Soroban Capital Partners LP has a proven track record of making smart investments. As always, it will be interesting to see how the fund continues to adapt to changing market conditions in the months ahead.