Meritage Group LP Q3 2022 vs. Q4 2022 13F Holdings Comparison

Investment management is an art, and the best managers are always seeking to maximize their clients' returns while minimizing the risks. One of the best ways to accomplish this is by analyzing companies, their trends, and their financial health before investing. Meritage Group LP seems to be doing this perfectly, and we can see that in their Q3 2022 and Q4 2022 13F holdings comparison. In this blog post, we will dive into Meritage Group LP's investment history, the changes in their holdings, and what this means for the investment market.

Meritage Group LP - A Historical Overview

Meritage Group LP is an investment management company that was founded in 1997 by Paul U.S. He started the company after working as a consultant at McKinsey & Company for four years. Meritage Group LP has its headquarters in San Francisco, California and manages $12.2 billion in assets. They use a long-only equity strategy that has a focus on the consumer, technology, healthcare, and energy sectors. Meritage Group LP believes in fundamental and bottom-up research, looking at balance sheets, cash flows, product lines, and customer demand.

Changes in Holdings - Q3 2022 and Q4 2022

When we analyze Meritage Group LP's Q3 2022 and Q4 2022 13F holdings, we see a few changes in their investment strategy. They reduced their holdings in Workday Inc (WDAY) by 16.6% and in Amazon.com Inc (AMZN) by 23.9%. At the same time, they increased their holdings in Salesforce.com Inc (CRM) by 31.7%, Freshworks Inc (FRSH) by 16.1%, and Dollar Tree Inc (DLTR) by 35%.

One of the most interesting changes occurred in SPDR S&P 500 ETF TR (SPY) where they sold 1,470,000 put options in Q3 2022. In Q4 2022 they didn't have any put options at all. The put option allows the holder to sell the asset at a predetermined price, giving them downside protection in case of a market downturn. Meritage Group LP's decision to sell put options shows that they were confident in the market's bullish outlook, and they don't expect a significant drop in prices.

What Does This Mean for the Investment Market?

Meritage Group LP's investment choices reflect the strengths, weaknesses, opportunities, and threats of the companies they invest in. In the case of WDAY and AMZN, we see that their investment managers believe that these companies' growth outlook is waning. Meanwhile, in the case of CRM and DLTR, they see the companies' growth potential being undervalued by the market.

In conclusion, Meritage Group LP's Q3 2022 and Q4 2022 13F holdings comparison shows us that even the best investment managers are always adapting to the ever-changing market. Their focus on fundamental research and bottom-up analysis creates a strategy that's tailored to their clients' needs. By continually analyzing their portfolio, Meritage Group LP shows that they are always trying to maximize their client's returns while minimizing market risks.