The Evolution of Cheyne Capital Management (UK) LLP's Holdings: Comparing Q4 2022 and Q1 2023

The world of investments is constantly evolving, and keeping up with the changes is crucial for investors who want to make informed decisions. One way to do this is by reviewing a filing known as 13F, which requires institutional investors managing over $100 million to report their holdings to the Securities and Exchange Commission (SEC) every quarter. In this article, we'll take a look at the changes in the holdings of Cheyne Capital Management (UK) LLP by comparing their Q4 2022 and Q1 2023 13F reports.

Largest Increases in Holdings

Let's start with the holdings that increased the most. The top two are both from the energy sector, with Occidental Petroleum Corp (OXY) seeing an increase of 127.6% and Barrick Gold Corp (ABX.TO) rising by 8.1%. The third-largest increase came from Natura & Co Holding SA (NTCO), a Brazilian cosmetics company, which saw its holdings skyrocket from 0 to 279,000 shares.

Largest Decreases in Holdings

On the other end of the spectrum, there were a few significant decreases in holdings. The largest decrease was in Activision Blizzard Inc (ATVI), where the company saw a decrease of 100%, selling off its entire 103,136 shares. Canadian oil company Cenovus Energy Inc (CVE.TO) saw its holdings drop by 10%, followed by Berry Corp (BRY) with a decrease of 1.9%.

New Holdings

There were several new players in Cheyne's portfolio in Q1 2023, with Sea Ltd (SE) taking the top spot with 53,656 shares. Other new holdings include All Birds Inc (BIRD), a sustainable shoe company, and Farfetch Ltd (FTCH), an online luxury fashion retailer, with 100,000 and 416,500 shares respectively.

Dropped Holdings

Of course, with new holdings come dropped holdings. Chesapeake Energy Corp (CHK), a natural gas and oil exploration company, was entirely sold off, as was Radnet Inc (RDNT), a provider of outpatient imaging services. Other sold-off holdings include Travere Therapeutics Inc (TVTX), Sarepta Therapeutics Inc (SRPT), and EQT Corp (EQT).

Conclusion

Overall, the changes in Cheyne Capital Management's holdings showcase a mix of strategic shifts and market trends. The significant increases in energy holdings suggest a bullish outlook on the sector, while the rise of Natura & Co shows an interest in emerging markets. Meanwhile, the decrease in Activision Blizzard suggests a loss of faith in the gaming company. As always, the world of investment is constantly changing, so only time will tell whether these shifts will pay off for the hedge fund.