Comparing Csenge Advisory Group's Q3 and Q4 2022 13F Holdings: An Analysis of Changes

Investors are always seeking to understand and adapt to market trends, and firms like Csenge Advisory Group are no exception. Each quarter, the 13F filings reveal the firm's publicly traded equity holdings as of the end of the respective quarter. Analyzing the Q3 and Q4 2022 holdings can provide insight into the firm’s investment strategy and reaction to market changes. In this post, we dive into the changes in holdings for Csenge Advisory Group and what they may tell us about their investment approach.

First, let's take a look at the top holdings of the firm. In Q3, the firm's top three holdings were the First Trust Enhanced Short Maturity ETF (FTSM), the First Trust Morningstar Dividend Leaders ETF (FDL), and the First Trust Exchange-Traded Fund III (FPEI). These holdings had a combined total value of over $100 million. In Q4, the top holdings changed significantly, with the SPDR S&P 500 ETF Trust (SPY) becoming the top holding, with a value of over $71 million. INVESCO Exchange Traded Fund Trust (RSP) and First Trust Exchange-Traded Fund III (FPE) were the other top holdings.

Looking at the changes in individual holdings, we see some notable shifts. For example, Apple Inc. (AAPL) holdings decreased by 14.4%, while holdings in Amazon.com Inc. (AMZN) also declined by 23.6%. In contrast, holdings in HYLS, the First Trust Exchange-Traded Fund (ETF), increased by 53.3%. The common theme among Cseng Advisory Group’s Q4 holdings seemed to be more focused on funds that track the broader market rather than individual stocks, with SPY, RSP, and First Trust Dow Jones Internet Index Fund (FDN) being the top three holdings.

It's worth noting that some of these changes may be attributed to market trends. For example, the decrease in holdings of AAPL could be due to the company's recent underperformance in the market. However, it's also possible that Csenge Advisory Group is adjusting their investment strategy.

Csenge Advisory Group may be increasing their focus on exchange-traded funds (ETFs) for several reasons. ETFs provide diversification, transparency, and liquidity, which are crucial in uncertain economic circumstances. Furthermore, ETFs often have lower management fees, which could be attractive to investors. Csenge Advisory Group’s shift towards ETFs could be a reflection of their investment philosophy of focusing on moderate to low-risk investments that offer stable returns.

One area of the portfolio that saw a significant increase during Q4 was the holding in the iShares Trust iBoxx $ Investment Grade Corporate Bond ETF (LQD), which rose by 82%. This could be attributed to investors seeking out safer investments in a volatile market. The holding in the iShares MSCI EAFE ETF (EFA) also increased by 30%, indicating a preference for international funds as well.

In conclusion, analyzing Csenge Advisory Group's Q3 and Q4 13F holdings can provide insights into the firm's investment approach. The changes in holdings suggest dynamic adjustments in response to shifting market trends. The shift towards ETFs indicates the firm's desire for diversification, liquidity, and lower fees. However, it's important to note that individual stock holdings do not paint the whole picture, since various other factors, such as trading fees, taxes, and expenses, can impact returns. As with any investment strategy, it's crucial to consider a range of factors before making any decisions.