Investment Analysis: Redwood Investment Management, LLC Q3 2022 vs. Q4 2022 Holdings Comparison

Redwood Investment Management, LLC has reported its Q3 2022 vs. Q4 2022 holdings comparison for its 13F. The results indicate some significant changes in the holdings for some of the issuers, with some stocks experiencing a decline in the number of shares while others have seen an increase. The fund manager's high-conviction holdings remained the same, with the top holdings, or the most substantial percentage of net assets for the last quarter, being the same for both Q3 and Q4.

The fund manager has stakes in several ETFs, including Vanguard FTSE Emerging Markets (VWO) and iShares Core MSCI Emerging Markets (IEMG), which saw an increase in the number of shares in Q4 compared to Q3, showing that the fund manager is bullish on the emerging-market stocks. The value of VWO in terms of shares rose to 866902 in Q4 from zero in Q3, while the value of IEMG rose to 697690 in Q4 from zero in Q3, indicating a shift in focus from US stocks to emerging markets.

However, LeaderShares AlphaFactor Tactical ETF (LSAT) saw a decrease in the number of shares held by the fund manager. In Q3, the fund manager held 1235890 shares, but this number dropped to 613535 in Q4. The Q3 value of LSAT was $39808, but it fell to $18952 in Q4. This indicates that Redwood Investment Management, LLC is bearish on LSAT and has had a change of heart about the ETF.

Similarly, LeaderShares AlphaFactor US Core Equity ETF (LSAF) saw a 44.9% decrease in the number of shares held by the fund manager, with the Q3 number of 1217906 dropping to 598912 in Q4. This decrease is also reflected in the Q3 value of $32713, which fell to $18022 in Q4, indicating that the fund manager is bearish on LSAF.

Another ETF that saw a significant decrease in the number of shares held is the LeaderShares Equity Skew ETF (SQEW), which posted a 42.6% drop in the number of held shares, with the Q3 number of 965011 dropping to 533602 in Q4. The Q3 value of $25766 also fell to $14786 in Q4, reflecting that Redwood Investment Management, LLC is bearish on this ETF.

On the other hand, the SPDR Portfolio Emerging Markets ETF (SPEM) saw an increase in the number of shares held by the fund manager, with the Q3 number of 280558 rising to 353277 in Q4. The Q3 value of $8709 rose to $11672 in Q4, indicating that the fund manager is bullish on SPEM.

In terms of individual stock holdings, there were several notable changes. HP Inc (HPQ) saw a significant increase in the number of shares held by the fund manager, with the number rising from 50327 in Q3 to 322518 in Q4, indicating a bullish sentiment. The Q3 value of $1254 rose to $8666 in Q4, reflecting the potential for growth in the stock.

Apple Inc (AAPL), however, saw a decrease in the number of shares held by the fund manager, with the Q3 number of 77109 dropping to 61799 in Q4. This decrease is also reflected in the Q3 value of $10656, which fell to $8030 in Q4, indicating that Redwood Investment Management, LLC is bearish on AAPL.

Overall, the Q3 vs. Q4 holdings comparison is evidence of the fund manager's shifting investment strategy as the market changes. The bullish and bearish sentiments toward different ETFs and individual stocks reflect the fund manager's assessment of the market and the trends that may shape it in the coming months. By optimizing its holdings, Redwood Investment Management, LLC aims to achieve its objective, which is to provide a significant return for investors while minimizing risk.