13F Filings Reveal Significant Changes in Institutional Investors' Holdings in Q4 2022

Financial Advisory Group recently released a report comparing the holdings of their clients' portfolios for Q3 2022 versus Q4 2022. The report, which was based on data accumulated from the 13F filings, showed significant changes in holdings of various securities over just one quarter. In this blog post, we will take a closer look at the data and summarize the major trends and takeaways.

First, it is important to understand what a 13F filing is and how it works. The Securities and Exchange Commission (SEC) requires institutional investment managers with over $100 million in assets under management to submit a Form 13F, which discloses the list of securities that they hold in their portfolios every quarter. These reports provide valuable information about what stocks, bonds, and other securities institutional investors, like hedge funds and mutual funds, are buying and selling.

The report showed a decrease in holdings of most securities in Q4 2022, with some exceptions. The top five securities with the highest percentage of decrease in holdings were DBEF, SCHE, TSLA, AMZN, and GOOGL. DBEF, DBX ETF TR, had the highest decrease percentage of 12.6%. This is notable because DBEF has been a preferred choice among institutional investors seeking international exposure. However, this quarter's decrease could be due to concerns over the global economic slowdown.

SCHE, Schwab Strategic Tr, had a percentage of decrease of 22.9%. This decline could be attributed to concerns over the impact of rising inflation on global growth and uncertainty over the Chinese property market. TSLA, Tesla Inc, saw a decrease of 54.8%, as the electric vehicle maker faced several supply chain disruptions, production delays, and competition from rivals. AMZN, Amazon.com Inc, and GOOGL, Alphabet Inc, also saw big decreases of 27.2% and 14.4%, respectively.

In contrast, some securities saw an increase in holdings, with a few standouts. MBB, iShares TR, had the highest percentage increase of 81.2%, likely due to its attractive yield and its status as a safe haven investment. JPST, J P Morgan Exchange-Traded F, had the highest percentage decrease of 28%, possibly due to short-term interest rates continuing to be low amid a booming economy.

Moving on to individual stocks, AAPL, Apple Inc, saw a decrease of 8.2%, mainly due to concerns over the chip shortage and the delayed launch of iPhone 14. Conversely, MSFT, Microsoft Corp, saw a decrease of only 1.6%, demonstrating its resilience in the face of uncertainties. BA, Boeing Co, saw an increase of 57.5%, likely due to investors betting on an easing of travel restrictions and a resurgence in air travel and tourism.

Some of the other notable changes include an increase in holdings of PEP, PepsiCo Incorporated, by 5%, likely due to its resilient business model and strong brand recognition. TLT, iShares TR, saw a significant increase in holdings, as investors sought the safety of fixed-income assets amid uncertainties in the equity markets. CVX, Chevron Corp, saw a decrease of 20.4%, largely due to the fall in oil prices and the ongoing shift towards renewable energy.

Overall, the Q3 2022 versus Q4 2022 comparison of the 13F filings provides some valuable insights into the investment strategies of institutional investors. The decrease in holdings of several securities indicates concerns over inflation, supply chain disruptions, and rising interest rates, while the increase in holdings of safe haven assets demonstrates a risk-off approach by investors. On the other hand, the increase in holdings of certain individual stocks suggests that some investors are bullish on specific companies, while the decrease in holdings of others suggests concerns over possible shortcomings.

The 13F filings offer an excellent way to track institutional investors' investment decisions and stay on top of market trends. While the filings themselves do not encompass all the factors that go into the decision-making of individual investors or funds, they can still provide useful insights into the broader market trends and the sentiment of the investment community.