At Holdings Channel, we reviewed the latest batch of the 54 most recent 13F filings for the reporting period of 3/31/2022, and noticed that Costco Wholesale Corp (Symbol: COST) was held by 18 of these funds. When hedge fund managers seem to think alike, we think it’s a good idea to take a closer look.
Before moving on, it’s important to point out that 13F filings don’t tell the whole story, as these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short posts. A fund making a bearish bet against a stock by selling short calls, for example, could also be long a certain amount of stock as it trades around its overall bearish position. This long component could appear in a 13F record and everyone could assume the fund is bullish, but that only tells part of the story. because the bearish/short side of the position is not visible.
After this caveat, we believe that looking groups 13F deposits can be revealing, especially when comparing one holding period to another. Below, let’s take a look at the evolution of COST positions, for this latest batch of 13F registrants:
|Funds||New position?||Changing the number of shares||Change in market value ($ in thousands)|
|Front Street Capital Management Inc.||Existing||–7,015||+$2,100|
|Symphony Financial Ltd. Co.||Existing||+2,311||+$1,705|
|First Trust Advisors LP||Existing||–68,334||–$35,140|
|Lumature Wealth Partners LLC||Existing||+275||+$175|
|Udine Wealth Management Inc.||Existing||–200||–$108|
|XTX Topco Ltd||NEW||+1,566||+$902|
|Cibc World Markets Corp||Existing||+71,449||+$42,019|
|Royal London Asset Management Ltd.||Existing||+9,291||+$7,283|
|Prudential Financial Inc.||Existing||+263,541||+$170,120|
|Search for Lights LLC||Existing||–4,600||–$2,609|
|Federated Hermes Inc.||Existing||+9,133||+$8,185|
|Silicon Valley Capital Partners||Existing||+136||+$99|
|USS Investment Management Ltd||Existing||–58,286||–$32,702|
|Equitable Management Inc.||Existing||+926||+$562|
|American International Group Inc.||Existing||–4,590||–$1,345|
|Bridgewater Associates LP||Existing||+272 132||+$164,170|
|Geller Advisors LLC||Existing||+907||+$527|
|Steginsky Capital LLC||Existing||CNUE||$UNCH|
In terms of shares held, we count 10 of the above funds having increased their existing COST positions from 31/12/2021 to 31/03/2022, 6 having decreased their positions and 1 new position. It should be noted that Pinnbrook Capital Management LP, included in this recent batch of 13F filers, exited COST common stock as of 03/31/2022.
Beyond these particular funds in this single batch of most recent filers, we counted the number of COST shares overall among everything funds that held COST as of 03/31/2022 (of the 4,132 we reviewed in total). We then compared this number to the sum total of COST shares of these same funds held as of 12/31/2021, to see how the total number of shares held by hedge funds has evolved for COST. We found that between these two periods, the funds reduced their holdings by a total of 4,322,964 shares, from 113,120,178 to 108,797,214 for a decrease in the number of shares of approximately -3.82%. The three main funds holding COST as of 03/31/2022 were:
We will continue to track the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at aggregated information across manager groups between filing periods. Although reviewing individual 13F returns can sometimes be misleading due to the lengthy nature of the information, the total sum on groups funds from one reporting period to another can be much more revealing and relevant, providing interesting stock ideas that merit further research, such as Costco Wholesale Corp (Ticker: COST).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.