Divisar Capital Management LLC's Q3 vs. Q4 2022 Holdings: Which Stocks Took a Hit?

Investment managers and hedge funds with more than $100M in assets under management are required by law to file a Form 13F every quarter with the SEC, listing their holdings for that period. Divisar Capital Management LLC, a San Francisco-based investment advisory firm, recently filed its 13F for Q4 2022, and we have compared it to their Q3 2022 holdings to see which stocks they bought, sold, and held onto.

Here are some key insights from the comparison:

🔸 Top 5 Holdings Changes:

● Bought: LUMENTUM HLDGS INC, TILLYS INC

● Sold: ARLO TECHNOLOGIES INC, INFINERA CORP

● Reduced: ULTRA CLEAN HLDGS INC, MASTERCRAFT BOAT HLDGS INC

📈 Biggest Holdings Increases:

● RENT THE RUNWAY INC - Divisar increased its stake from 2,592,638 shares in Q3 to 4,096,103 shares in Q4, a jump of 58.28%.

● ZUMIEZ INC - Divisar increased its stake from 302,795 shares in Q3 to 510,119 shares in Q4, a jump of 68.75%.

● NLIGHT INC - Divisar bought 401,236 shares of nLight in Q4, bringing their total stake to 401,236.

📉 Biggest Holdings Decreases:

● ARLO TECHNOLOGIES INC - Divisar reduced their stake in the security camera manufacturer by 13.85%, from 2,159,456 shares in Q3 to 1,869,891 shares in Q4.

● INFINERA CORP - Divisar reduced their stake in the optical solutions provider by 37.75%, from 1,347,581 shares in Q3 to 838,947 shares in Q4.

● ULTRA CLEAN HLDGS INC - Divisar reduced their stake in the semiconductor equipment manufacturer by 15.10%, from 1,294,703 shares in Q3 to 1,099,254 shares in Q4.

📈Top Buy - LUMENTUM HLDGS INC:

In Q4 2022, Divisar added 356,022 shares of Lumentum Holdings Inc., a manufacturer of optical and photonic products, to their portfolio, bringing their total holdings to 678,644 shares. The company has been consistently growing in the past few years and has a market capitalization of around $11 billion. They reported quarterly revenues of $533 million, up 20% year-over-year.

📉Top Sell - ARLO TECHNOLOGIES INC:

Divisar sold 289,565 shares of Arlo Technologies Inc., a manufacturer of wireless and cloud-based security cameras, in Q4, reducing their holdings by 13.85%. Arlo has been facing challenges in the market in recent years with increased competition and supply chain disruptions affecting its revenue. The company's shares are currently trading at around $8.5, down 24% from their 52-week high.

In conclusion, Divisar Capital Management LLC made some interesting moves in Q4 2022, with some stocks being sold while others were increased in their portfolio. However, it's important to note that this is just one investor's opinion, and investors should conduct their own research before making any investment decisions.