Kaleidoscope Capital LP Q2-Q3 2018: A Tale of Two Quarters

Investors and fund managers know that the world of finance is ever-changing – one day the market is up, the next it's down; one quarter you could be holding stocks in one company, and the next, you could be shifting to another.

This is exactly what happened to Kaleidoscope Capital LP in the second and third quarters of 2018. Comparing their 13F Holdings for both quarters, there were significant changes in the number of shares held and the total value of the fund's holdings. Read on to find out what went down.

SPDR S&P 500 ETF TR

The SPDR S&P 500 ETF is a popular exchange-traded fund that tracks the S&P 500 index. In Q2 2018, Kaleidoscope Capital held 124,043 shares in the fund, with a total value of $33,650,000. In Q3 2018, there was no change in the number of shares held, but the value had increased to $36,062,000 – a 7.2% increase. This could mean that the fund manager had confidence in the continued growth of the overall market and decided to hold onto their shares.

VANGUARD TAX MANAGED INTL FD

The Vanguard Tax Managed Int'l Fund is designed to provide tax-efficient exposure to non-U.S. stocks. In Q2 2018, Kaleidoscope Capital held 683,133 shares in the fund, with a total value of $29,409,000. However, in Q3 2018, there was a slight decrease in the value of holdings, with the total value at $29,559,000 – a mere 0.5% increase. This could indicate that the fund manager was not as confident in the international market and decided to slightly diversify their holdings.

ISHARES TR

The iShares TR is an ETF that provides access to a range of global sources of investment income. In Q2 2018, Kaleidoscope Capital held 15,200 shares in the fund, with a total value of $967,000. In Q3 2018, there was a slight increase in both the number of shares held and the total value, with 15,200 shares and a value of $974,000 – a 0.7% increase. This could suggest that the fund manager was testing the waters with this holding, or it could simply indicate that they had a positive outlook on the performance of the fund.

Overall, the changes in holdings by Kaleidoscope Capital LP from Q2 to Q3 2018 show a mixture of confidence in the market and diversification in holdings. While the SPDR S&P 500 ETF was held strong, the Vanguard Tax Managed Int'l Fund saw a slight decrease in value, and the iShares TR was held steady with a small increase. This suggests that fund managers may be reacting to market changes and taking calculated risks in their holdings.