Contrarian Capital Management's Q3 vs. Q4 13F Holdings: Winners and Losers

Contrarian Capital Management is a distinguished hedge fund investment firm that incorporates a broad range of investment strategies and techniques to generate returns. Like all institutional investment managers, Contrarian Capital Management is required to publicly disclose their quarterly investment holdings, behavior, and changes in their Form 13F filing with the Securities and Exchange Commission (SEC).

The Q3 2022 vs. Q4 2022 13F Holdings Comparison for Contrarian Capital Management shows us how the hedge fund managers allocate their assets. This article aims to provide insights into the hedge fund's quarterly changes, and we will take a deep dive into the top gainers and losers in their portfolio.

Gainers

Gerdaus SA (GGB)

Contrarian Capital acquired an additional 1.49 million shares in Gerdaus SA (GGB) for Q4 2022, raising their total shares to 18.55 million. The investment firm increased its position by more than 16%, indicating bullish sentiment towards the steel manufacturing company. Gerdaus SA's third-quarter EBITDA grew 38% YoY, indicating strong earnings growth.

Arch Resources Inc (ARCH)

Contrarian Capital Management increased its position in Arch Resources Inc (ARCH) by more than 13%, with an additional 24k shares in Q4 2022. Arch Resources is a leading producer of metallurgical coal and a significant producer of thermal coal. Arch's third-quarter earnings release was robust, and the company showed strong profitability. The successful expansion of the Leer South mine has enhanced the company's strong operational performance.

TERNIUM SA (TX)

Contrarian Capital added 26k shares of Ternium SA to their portfolio in Q4 2022, with an increased position by 14.9%. Ternium SA is one of the leading steel manufacturers operating in the Mexican and Argentine markets. The company's plunging revenue in the previous quarter made Ternium intensely undervalued and promising for a long-term investment. With the company's third-quarter financial results showing improved revenue, it's likely that Contrarian Capital has made the right move.

Losers

Vale S A (VALE)

Contrarian Capital sold over 4.08 million shares of Vale S A in Q4 2022, plunging its total shares by more than 62%. Vale S.A. is one of the largest mining companies in the world, and its core product is iron ore. The sharp sell-off in Vale's shares could be due to weak iron ore prices in the third quarter. The market went through a significant selloff due to China's coal output, which spilled over to affect iron ore prices.

Brookdale Senior Living Inc (Undisclosed)

Contrarian Capital added a new position of 6.15 million shares of Brookdale Senior Living Inc in Q4 2022. Brookdale Senior Living is the largest global provider of senior living services that operate independent living, assisted living, and dementia-care communities in the United States. With an increasing aging population, Brookdale's expansion into developing memory-care facilities and recent investment in technology offerings will be essential for the company's growth.

Conclusion

Contrarian Capital Management's Q3 vs. Q4 13F Holdings Comparison provides details of changes in holdings that can be viewed as bullish or bearish. With this information, investors can form their opinions and make informed trading decisions regarding these stocks. While interpreting changes in positions within a hedge fund's portfolio may not be entirely accurate, it's still a valuable insight for individual investors. These insights, along with further analysis and due diligence, will provide a better understanding of Contrarian Capital Management's decision-making process.