The Rise and Fall: Tensile Capital Management Q3 2022 vs. Q4 2022 Holdings Comparison

Tensile Capital Management LP, a multi-billion-dollar investment management firm, is one of the major players in the investment world. As a relatively new fund, it has managed to carve a niche for itself by achieving remarkable returns for its clients. However, investing in the stock market is a volatile affair, with endless possibilities and unforeseen circumstances. The just-released Q3 2022 vs. Q4 2022 13F Holdings Comparison data show that Tensile Capital Management LP is susceptible to these market vagaries.

The data indicate the changes in holdings of different firms and their corresponding values as held by Tensile Capital Management LP (TCM) in the third quarter of 2022 and the fourth quarter of the same year. While some stocks saw remarkable gains, others saw significant losses that led to a decline in TCM's total value.

VERX, a cloud-based tax technology firm, recorded the biggest percentage increase in TCM's portfolio between Q3 and Q4. The investment firm increased its stakes in VERX by 21.4%, resulting in 7,326,136 shares worth $86,628,000 in Q4 2022. The surge in these shares equates to a 21.4% increase in value compared to the previous quarter.

However, not all firms in TCM's portfolio had good fortunes. COUPA SOFTWARE, a cloud-based procurement software company, had the biggest percentage decline in TCM's total value. Between Q3 and Q4, TCM reduced its holdings in COUPA SOFTWARE by 49.7%, resulting in 300,914 shares worth $24,013,000 in Q4 2022. This decline led to a 32.3% drop in value compared to the previous quarter.

Another notable loss in the TCM portfolio was AVALARA INC, a tax automation software company. TCM sold its entire stake in AVALARA, amounting to 1,003,408 shares worth $92,113,000 in Q3 2022. TCM's decision to sell off all the shares in the firm resulted in a 100% decline in value compared to the previous quarter.

Other companies in TCM's portfolio that recorded losses from Q3 to Q4 include SMARTSHEET INC (-100.0%), CHANGE HEALTHCARE INC (-100.0%), ASBURY AUTOMOTIVE GROUP INC (-100.0%), and TUESDAY MORNING CORP (-100.0%).

On the flip side, there were firms that recorded some growth in their holdings. For instance, TCM increased its stakes in the sporting goods retailer DICKS SPORTING GOODS INC by 15%, in VALVOLINE INC by 20.8%, and in LIBERTY MEDIA CORP DEL by 32.6% between Q3 and Q4 2022. This move translated to an increase in the overall value of these firms' stocks in TCM's portfolio.

In conclusion, Tensile Capital Management LP is susceptible to the unpredictable nature of the stock market. While some investments yield great returns, others lead to significant losses. The Q3 2022 vs. Q4 2022 13F Holdings Comparison reveals that the fund is taking calculated risks, which, unfortunately, do not always pay off. Investors can use the insights provided by this data to make informed investment decisions.