Investment Management Giant INCA Investments LLC Shows Big Changes in Holdings in Q3 and Q4 of 2022

Investment giants INCA Investments LLC recently filed their 13F with the SEC, revealing significant changes in their holdings from Q3 to Q4 of 2022. The quarter saw a considerable shift in INCA's portfolio, as the company invested in certain stocks and sectors while selling off some of their existing equity. Let's dive in and take a closer look at some of the most notable changes.

First on the list is CREDICORP LTD, a Peruvian bank which had a solid 13% increase in holdings from Q3 to Q4. Similarly, FOMENTO ECONOMICO MEXICANO S, a Mexican beverage company, saw an impressive 35.2% increase in shares held by INCA. Another big mover was GRUPO FINANCIERO GALICIA S A, which saw INCA increase its holdings by 36.6%, indicating that INCA anticipates a positive future trend in the Argentinian banking sector.

INCA also reevaluated their position on Banco Santander Chile, increasing their holdings by a massive 46.6% from the previous quarter. This decision was most likely influenced by the country's political stability and steady economic growth, leading INCA to believe that it's an excellent time to invest in Chilean banks.

Moving on to MERCADOLIBRE INC, an e-commerce giant with operations mainly in Latin America, INCA increased their position by almost 12%. The company's positive earnings call in Q3 could be a contributing factor to INCA's bullish outlook on MercadoLibre's future growth in the region.

BANCO BRADESCO S.A, BancoColombia SA, and Itau Unibanco Hldg SA, all had a mixed fate as far as INCA's holdings are concerned. INCA only marginally increased its holdings in Itau Unibanco Hldg SA, whereas it significantly increased its holdings in BancoBradesco and BancoColombia. Although the reasons for these moves remain unclear, they could be indicative of INCA's outlook on the banking sector as a whole in Brazil and Colombia.

As for ARCS Dorados Holdings Inc, which is the master franchiser of McDonald's in territories like Latin America and the Caribbean, INCA had a bullish outlook. INCA's holdings in ARCS increased by over 42% from Q3 to Q4, suggesting that the fast-food giant is an attractive prospect for investment, particularly in the fast-evolving QSR industry.

Finally, XP Inc. and PagSeguro Digital Ltd saw massive increases in INCA's holdings, with PagSeguro Digital Ltd coming in first place with a 120% increase from Q3 to Q4. These increases could be due to INCA's anticipation of the fast-growing FinTech industry, particularly in Latin America, of which PagSeguro and XP Inc are leading players.

The only holdings that INCA decided to deactivate were Geopark Ltd., with a total of 177,283 shares in Q3. Still, the investment giant disposed of all its positions in the company in Q4.

Overall, the 13F filings reveal that INCA Investments LLC's investment strategy has undergone a significant shift over the past quarter. The company chose to invest significantly in the sectors/stocks that they believe are well-positioned for future growth, and who would act as an ideal hedge against the market risks at present. We will continue to watch INCA's investment decisions in the coming quarters to see if their bullish orientation pays off.