Investing Insights: Stormborn Capital Management's Q3 2022 vs. Q4 2022 13F Holdings Comparison

Stormborn Capital Management, LLC recently released its 13F holdings for the third quarter of 2022, and the comparison between Q3 and Q4 2022's holdings offers valuable insights into the firm's investment strategy. In this blog post, we'll take a closer look at some of the changes in Stormborn's holdings and explore how they might reflect broader trends in the market.

First and foremost, Stormborn Capital Management's Q4 2022 holdings showed a notable shift toward consumer discretionary stocks. For example, the firm reduced its holdings in Amazon, decreasing from 133,500 shares to 108,500 shares, a 39.6% change. There was also a significant decrease in holdings of Darden Restaurants, dropping from 100,000 shares to 65,000 shares, a decrease of 28.8%.

On the other hand, the firm expanded its holdings in Valvoline Inc, one of the leading producers of premium branded automotive, commercial and industrial lubricants, switches, and cleaners, increasing from 565,000 shares in Q3 to 605,000 shares in Q4, a 38% change. This move toward consumer-facing stocks is not surprising, given the broader economic climate and many consumers' increased ability to spend.

Stormborn also increased its holdings in Tempur Sealy International Inc, a company that produces and markets sleep products worldwide, showing an uptick in consumer spending on mattresses and bedding as consumers continue to prioritize health.

It is also interesting to note that the firm acquired a new position in Crocs Inc, with 170,000 shares, which were not present in Q3 2022. Crocs have had a strong turnaround in the market, with many young people wearing them as a fashion statement. This move towards Crocs could reflect the changing face of consumer preferences and tastes.

In terms of decreases in holdings, one surprising move was Stormborn's decision to decrease its holdings in Members Collective Group from 510,251 shares in Q3 to 785,251 in Q4, which represents a 22% change. This move comes as a shock since Members Collective Group announced on the 15th of October 2022 that it had extended its membership program to include three new destinations, including Louisiana Atlas, South Carolina Atlas, and the forthcoming Minnesota Campness Atlas.

Stormborn also decreased its position in Lululemon Athletica Inc, which produces and sells athletic apparel and accessories for women, men, and girls worldwide. The firm reduced its holdings from 30,000 shares in Q3 to 25,000 shares in Q4, a 4.5% drop.

In conclusion, these changes in Stormborn Capital Management's holdings reflect broader market trends, with a focus on consumer spending and a shift in the types of consumer products being purchased. Overall, disentangling the reasons behind the shifts in their holdings can provide investors with valuable insights into the broader market and provide useful information for those looking to adjust their own investment portfolios accordingly.