Dorsey Wright & Associates Q4 2022 vs. Q1 2023: Analyzing the Changes in 13F Holdings

In the world of finance, 13F filings are considered the holy grail for investors who want to track institutional investments. These filings provide insights into the equity holdings of institutional investment managers, giving investors a clear idea of which stocks the professionals are betting on. Dorsey Wright & Associates, a leading advisory firm, recently released its Q4 2022 and Q1 2023 13F holdings data. In this blog post, we'll take a closer look at the changes in the firm's holdings and what it could mean for investors.

Understanding 13F Holders

Before diving into the specific changes in Dorsey Wright & Associates' holdings, it's important to understand what 13F holders are and why their filings matter. The Securities and Exchange Commission (SEC) requires institutional investment managers who manage over $100 million in qualifying assets to file Form 13F. This publicly available document includes information on the institutional investment manager's equity holdings at the end of each quarter. 13F filings are not required to include all security types or disclose all the investment manager's holdings, but they do give investors a general idea of the types of securities the investment manager is investing in.

Overview of Dorsey Wright & Associates' Holdings

Now let's take a closer look at the changes in the Dorsey Wright & Associates' holdings. In Q4 2022, the firm had 28 holdings, of which 4 were new positions. By Q1 2023, the number of holdings had increased to 31, of which 3 were new positions. The total value of the firm's holdings increased from $94 million in Q4 2022 to $96 million in Q1 2023. The top five holdings in Q1 2023, by value, were NUE, MRO, HRB, KNSL, and RJF.

Major Changes in Holdings

One of the most significant changes in Dorsey Wright & Associates' holdings was the addition of KNSL. In Q4 2022, the firm held 22,722 shares of KNSL, which increased to 22,499 shares in Q1 2023. The increase represents a 13.6% change, and the value of the investment increased from $5.9 million in Q4 2022 to $6.8 million in Q1 2023. Another significant change was the reduction in holdings of LLY. In Q4 2022, Dorsey Wright & Associates held 22,358 shares of LLY. By Q1 2023, this number had decreased to 16,830 shares. The value of the investment also decreased from $8.2 million in Q4 2022 to $5.8 million in Q1 2023, representing a 29.3% drop. Among the new positions, BAESY and TS stood out, with large increases in number of shares. For BAESY, the number of shares held by the firm went from 52,647 in Q4 2022 to 95,568 in Q1 2023, representing a 81% increase. Meanwhile, the number of shares held in TS increased by about 94.6%, going from 44,428 in Q4 2022 to 106,960 in Q1 2023.

Conclusion

13F filings provide vital information to investors, allowing them to track the equity holdings of institutional investment managers. In the case of Dorsey Wright & Associates, there were a few notable changes in holdings, with the addition of KNSL and the reduction in LLY holdings being the most significant. The addition of new positions in BAESY and TS also caught investors' attention. These changes suggest that the firm is positioning itself to take advantage of new opportunities in the market. Investors should keep a close eye on Dorsey Wright & Associates' future 13F filings to see if the firm continues to make changes to its holdings.