SQN Investors LP Q3 2022 vs. Q4 2022: A Closer Look at the Top Holdings

SQN Investors LP is a hedge fund with over $5 billion in assets under management. As per the recently filed 13F report for Q3 2022 and Q4 2022, there have been significant changes to its holdings. In this blog post, we'll examine the top holdings in both quarters, identify any significant shifts in the portfolio, and attempt to understand why these changes might have occurred.

FIVE9 INC (FIVN):

The company dropped by 28.9% between Q3 and Q4 of 2022, with SQN Investors LP holding 576,902 shares worth $43,256,000 in Q3 and 453,156 shares worth $30,751,000 in Q4. This steep decline in holdings is surprising, given FIVN's strong performance in recent years. The cloud communications provider has been consistently growing its top-line, driven by increasing customer demand for cloud-based contact center solutions.

BILL.COM HOLDINGS INC (BILL):

SQN Investors LP's holdings in BILL increased by 17.3% between Q3 and Q4, with the company holding 195,685 shares worth $25,903,000 in Q3 and 229,645 shares worth $25,022,000 in Q4. This indicates that SQN Investors LP has continued to be optimistic about the company's growth prospects. BILL is a cloud-based accounting software company and has been experiencing strong growth in recent quarters, given the growing demand for cloud-based accounting solutions.

MONGODB INC (MDB):

The number of shares held by SQN Investors LP in MDB decreased by 38.9% between Q3 and Q4 of 2022. SQN Investors LP held 194,005 shares worth $38,522,000 in Q3, compared to 119,532 shares worth $23,528,000 in Q4. This decline in holdings is surprising given that MDB has been experiencing robust growth in recent quarters, with a sustained increase in customer adoption of its cloud-based database platform.

NEW RELIC INC (NEWR):

SQN Investors LP held zero shares of New Relic in Q3, but that changed in Q4 when the company acquired 376,005 shares worth $21,225,000. This shift suggests that SQN Investors LP may be bullish on NEWR's growth prospects going forward. New Relic is a cloud-based software analytics company that has been experiencing strong growth in recent years, thanks to the growing demand for cloud-based analytics solutions.

Other Stocks:

SQN Investors LP's holdings in several stocks dropped significantly between Q3 and Q4 of 2022. For instance, its holdings in CyberArk Software Ltd (CYBR) fell by 48.8%, CrowdStrike Holdings, Inc. (CRWD) fell by 54.9%, and SentinelOne Inc. (S) fell by 57.6%. In contrast, the holdings in Atlassian Corporation Plc (TEAM.MX) and Docerbo Inc (DCBO.TO) declined by 100% between Q3 and Q4 of 2022, indicating that the fund has sold its positions.

Conclusion:

SQN Investors LP made significant changes to its holdings in Q3 and Q4 of 2022. It is difficult to understand why the fund increased or decreased its holdings in certain companies within such a short period. However, it is vital to note that these changes may be influenced by several factors, including market conditions, company-specific developments, and the fund's investment strategies. Despite these fluctuations, the fund's investments seem to focus on cloud-based solutions, a trend in line with the growing adoption of cloud-based technologies across sectors.