A Look Inside Kelso & Company: Analyzing 13F Holdings Changes From Q2 2022 to Q3 2022

Investors and analysts alike are always looking for insights into the mindset of successful investment firms. One way to gain insight is to analyze the holdings of top-performing funds. In this blog post, we'll be taking a look at the 13F holdings of Kelso & Company, L.P. and comparing their Q2 2022 and Q3 2022 positions.

Kelso & Company, L.P. is a private equity firm that invests predominantly in North American middle-market companies. Their investment team is comprised of seasoned professionals with a successful track record of identifying and executing value-creating investment opportunities. The firm manages multiple funds, and we'll be focusing on their Q2 2022 and Q3 2022 holding changes in this blog post.

As we dive into the data, it's important to note that the filing of a 13F does not necessarily indicate whether a security is a good investment or not. The data simply shows the changes in the holdings of the fund during the specified period. That said, analyzing the holdings of successful funds can be a useful tool in identifying investment trends and opportunities.

One notable change in Kelso & Company's Q2 2022 and Q3 2022 holdings was in Global Ship Lease, Inc. (GSL). In Q2 2022, Kelso & Company had no shares in GSL, and this remained the same in Q3 2022. The value of their holdings in Q2 2022 and Q3 2022 were both listed as $0. This is an interesting development to note, as it suggests that Kelso & Company had zero interest in this particular stock during this time frame.

It's worth noting that changes in fund holdings occur for various reasons. For example, a fund may sell a stock because they believe it's overvalued, or they may sell a stock in order to free up capital for other investments. In the case of Kelso & Company's lack of interest in GSL, it's unclear why they decided to steer clear of this stock.

While the lack of holdings in GSL is notable, it's important to keep in mind that Kelso & Company has a diversified portfolio. They invest in a variety of sectors, including healthcare, consumer, energy, and industrials. Let's take a look at some other notable changes in their Q2 2022 and Q3 2022 holdings:

- Becton, Dickinson and Company (BDX): In Q2 2022, Kelso & Company held 1,000 shares of BDX. In Q3 2022, they increased their position by 50%, holding 1,500 shares. The value of their holdings also increased from $435,000 to $726,000 during this time frame. This suggests that Kelso & Company had increased confidence in BDX as an investment opportunity.

- iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD): In Q2 2022, Kelso & Company held 103,700 shares of LQD. In Q3 2022, they decreased their position by 28%, holding 74,400 shares. The value of their holdings in LQD also decreased from $11,124,000 to $7,994,000 during this time frame. This suggests that Kelso & Company may have been reallocating their portfolio or reducing their exposure to corporate bonds.

Overall, analyzing the changes in Kelso & Company's Q2 2022 and Q3 2022 holdings provides some interesting insights into the firm's investment strategies. While the lack of interest in GSL is notable, it's important to keep in mind that this is just one aspect of their overall portfolio. As with any analysis of investment holdings, it's important to consider the bigger picture and take into account the broader context in which these decisions were made.

In conclusion, analyzing 13F holdings changes can be a useful tool in gaining insight into the investment strategies of top-performing funds. Kelso & Company's holdings changes from Q2 2022 to Q3 2022 provide some interesting insights into their thought process. While the lack of holdings in GSL is notable, it's important to remember that it's just one piece of their larger portfolio. Investors and analysts can use this information to identify trends and investment opportunities, but should always consider the bigger picture when making investment decisions.