Shaping Stevens Capital Management's Portfolio: A Look at Q3 2022 vs. Q4 2022 Holdings

Stevens Capital Management is a prominent hedge fund founded by Matthew W. Tewksbury in 1999. It is known for utilizing sophisticated quantitative strategies to manage its portfolio. In its latest 13F filing, the fund disclosed its holdings for the third and fourth quarters of 2022. This blog post will examine the changes in holdings during this period and provide insights into the potential drivers behind the fund's investment decisions.

The Q3 to Q4 shift saw interesting activity in thousands of shares in different assets with some assets selling off while others were accumulated. For instance, the fund closed its position in JPMORGAN CHASE & CO while acquiring a position of 99,667 shares in Q4 of 2022. Similarly, the fund maintained its shares at METAPLATFORMS INC in the third quarter, only to acquire 79,333 shares in Q4. These move puzzled some analysts as the shares of Meta Platforms Inc had taken a significant hit during the period.

Perhaps the most significant interest was steered towards its move into Select Sector SPDR TR (XLF) and ISHARES SILVER TR (SLV). Stevens Capital Management increased its holdings of XLF by 209%, accumulating 255,200 shares worth $8,728,000 in the fourth quarter. SLV witnessed a higher increase, with the fund accumulating 28% more shares of ISSHAERS SILVER TR in Q4, bringing its total shares to 248,500 worth $5,472,000.

Conversely, the fund's holding in SELECT SECTOR SPDR TR (XLE) experienced significant divestment in Q4, with the fund selling off 72% of its shares. In contrast, LQD ISHARES TR experienced a sharp increment in shares by 735.3% from 5,314 shares worth $544,000 in Q3 to 43,100 shares worth $4,544,000 in Q4 2022. These moves have caused widespread discussion among industry observers, with analysts scrambling to determine the underlying reasons.

The fund also toyed with its position in Advanced Auto Parts Inc where it acquired 4,746 additional shares in Q4 2022, bringing its total holdings to 8,872. Similarly, William Corporation witnessed a significant fractional increase of 1.1% in its total shares held in Walmart Inc.

Hummus Inc was one of the biggest surprises in the Stevens Capital Management portfolio. The company witnessed a significant hike of 316.3% from 962 shares worth $467,000 in Q3 to about 3,795 worth $1,944,000 in Q4 2022, an increase of 2,833 shares.

In conclusion, these moves indicate that Stevens Capital Management is actively looking to diversify its portfolio in Q4 2022. Its exit from some positions and entry into newer ones shows a balanced approach to risk management. With the market's future in constant flux, keeping an eye on changes in hedge funds like Stevens Capital Management can provide a valuable insight into coming trends.