Lakewood Capital Management, LP - Analyzing Q3 2022 vs. Q4 2022 13F Holdings

Lakewood Capital Management, LP is a hedge fund with over $1.3 billion in assets under management. The company recently disclosed its 13F holdings for Q3 2022 and Q4 2022. By comparing their holdings from Q3 2022 to Q4 2022, we can gain insights into Lakewood's investment strategy and market sentiment. In this blog post, we'll take a closer look at Lakewood's holdings and analyze the changes that occurred in Q4 2022.

Introduction:

Lakewood Capital Management, LP is a New York-based hedge fund that was founded by Anthony T. Bozza in 2007. Since its inception, Lakewood has generated a compound annual return of 19.8%, outperforming the S&P 500 by an impressive 12.8% over the same period. The fund has a broad investment mandate and invests across different sectors and markets.

Main Body:

Looking at Lakewood's 13F filing, we can see that the company reduced its position in several technology stocks, including Alphabet Inc (GOOGL) and Cushman Wakefield PLC (CWK). Lakewood also trimmed its exposure to Asbury Automotive Group Inc (ABG) and First American Financial Corp (FAF), both of which are in the consumer cyclical sector.

On the other hand, Lakewood increased its holdings in Apollo Global Management Inc (APO) by 21.4% and in Group 1 Automotive Inc (GPI) by 26.2%. The company also opened a new position in Brunswick Corp (BC), a manufacturer of recreational marine products.

One of the most significant changes in Lakewood's portfolio was its investment in Dell Technologies Inc (DELL). Lakewood boosted its position by 9.7%, indicating a bullish outlook on the company. This move was contrary to the market sentiment towards Dell, which saw its stock decline by over 7% in Q4 2022. Dell is facing supply chain issues and increasing competition in the PC market, but Lakewood seems to be betting on the company's long-term prospects.

Conclusion:

Overall, Lakewood's Q4 2022 filings suggest that the fund is taking a cautious approach towards the market. The company reduced its exposure to technology stocks, which have been major contributors to the market rally in recent years. Lakewood seems to be looking for value in other sectors, such as consumer cyclical and financials.

It's worth noting that Lakewood's portfolio changes are based on their own research and analysis, and investors should not blindly follow their moves. However, examining hedge fund filings can be a useful tool for investors to gain insights into market trends and sentiment.

In summary, Lakewood's Q4 2022 13F filings provide a glimpse into the company's investment strategy and market outlook. The changes in their holdings suggest that they are playing it safe in a volatile market and looking for value in sectors that have not performed as well in recent years. Whether this strategy pays off in the long run remains to be seen.