Adapting Your Investment Strategy: Analysis of Q4 2022 vs. Q1 2023 Fund Holdings

In today's investment world, adapting your investment strategy with the market's changes is pivotal to stay ahead of the game. The first step is to assess your fund's holdings to align them with the current market trends. A 13F filing is an essential tool that shows a fund's quarterly holdings. Among the recent 13F holdings filed by Murphy Pohlad Asset Management LLC, we can see some significant changes in their portfolio. In this article, we will analyze the Q4 2022 and Q1 2023 fund holdings and highlight some of the market trends that led to these changes.

Fund Holdings Overview

It's essential to understand the holdings before discussing the changes. The Murphy Pohlad Asset Management LLC holds an impressive number of shares from some of the most valuable companies in the world. As of Q4 2022, Microsoft Corporation (MSFT), Intel Corporation (INTC), and Chevron Corporation (CVX) were their top three holdings with shares of 22,076, 169,955, and 31,972, respectively. In contrast, many of their holdings were in the financial services, healthcare, and information technology sectors. During Q1 of 2023, we can see some significant changes in the holdings. Berkshire Hathaway (BRK-B) remained the number one holding, with 27,010 shares, followed by ConocoPhillips (COP) with 68,261 shares, which replaced Microsoft Corporation (MSFT) as their second-highest holding. Federated Hermes Inc. (FHI) decreased their holding by 1% to 168,091 shares, which placed them third on the list. Emerson Electric Co (EMR) dropped from their previous holding of 63,785 shares to 63,285 shares.

Changes Analysis

The most noticeable changes involved the companies whose holding percentages decreased by significant percentages. ConocoPhillips decreased in Q1 2023 by 18.9% to 68,261 shares, replacing Microsoft, which was down 19.1% to 21,876 shares. Meanwhile, Medtronic PLC (MDT) decreased by only 4.6%, from their Q4 2022 holdings of 69,052 shares to 69,632 shares in Q1 2023. On the other hand, the companies that increased their holdings significantly comprised Autoliv Inc (ALV), whose holdings increased by 19.5% from Q4 2022 to 53,115 shares in Q1 2023. Kimberly-Clark Corp (KMB) decreased by its holdings by 5.9%, while their Q1 2023 holdings increased by 15.5%. Similarly, Caterpillar Inc. (CTR) increased their holding by 9.1%, from 92,117 shares in Q4 2022 to 87,992 shares in Q1 2023.

Industry Trends

The changes in holdings in Murphy Pohlad Asset Management LLC's indicate a trend of movement from overbought sectors into undervalued or recently less favored sectors. For instance, the fund's decreased holdings in information technology and increased holdings in healthcare and materials sectors indicate a shift away from the former sector. Similarly, the repositioning away from the energy sector suggests that the observed drop is consistent with a broader trend of investors moving towards renewable energy, and less towards traditional fossil fuel industries.

Conclusion

Overall, analyzing the holdings of a fund in between quarters is essential for adapting to market changes and optimizing an investment portfolio. While fund managers' actions are not always enough to influence market trends, analyzing their strategies can be informative on how they see the market. Murphy Pohlad Asset Management LLC's recent portfolio changes indicate a potential shift of investment focus towards emerging trends that are gaining traction as the world undergoes rapid technological and economic changes.