13F-HR: Federated Hermes Reveals Q2 2024 Investment Portfolio in Form 13F Filing

Federated Hermes' latest 13F filing discloses its holdings as of June 30, 2024, revealing a diverse portfolio valued at over $42 billion.

Summary

• Federated Hermes, Inc. filed its Form 13F for the quarter ended June 30, 2024, disclosing its holdings to the Securities and Exchange Commission.
• The filing includes holdings managed by Federated Hermes and its affiliated institutional investment managers, including Federated Investment Counseling (FIC), Federated Investment Management Company (FIM), Federated Equity Management Company of Pennsylvania (FEMCOPA), Federated Global Investment Management Corp.(Global), Federated MDT Advisers (MDT), and Hermes Investment Management Limited (HIML).
• The total value of the reported holdings amounts to $42,193,947,480 across 3,689 entries.
• The filing details the name of each issuer, the title of the class of security, CUSIP and FIGI numbers, value, number of shares, and voting authority.
• Federated Hermes is deemed to share investment discretion over all investments reported, although this filing does not constitute an admission that such investment discretion in fact exists.
• The report includes holdings in a wide range of companies across various sectors, reflecting a diversified investment strategy.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing, but the size and diversification of the portfolio suggest a stable and well-managed investment strategy.

Positives

• The filing provides a comprehensive overview of Federated Hermes' investment portfolio.
• The portfolio is highly diversified across numerous companies and sectors.
• The filing includes holdings managed by multiple affiliated investment managers, indicating a broad range of expertise.
• The report is made to comply with applicable law.

Risks

• The filing does not provide insights into the rationale behind specific investment decisions.
• The report is backward-looking and does not guarantee future performance.
• The filing does not constitute an admission that such investment discretion in fact exists, but is made solely to comply with applicable law.

Management Comments

• Federated Hermes exercises investment discretion over certain investments as reported by FIC.
• Subject to guidelines established by the Boards of Trustees or Directors of the aforementioned Funds, FIM exercises investment discretion over the investments identified with the number 2 under Item 7 in the attached tables.
• Subject to guidelines established by the Boards of Trustees or Directors of the aforementioned Funds, FEMCOPA exercises investment discretion over the investments identified with the number 9 under Item 7 in the attached tables.
• Subject to guidelines established by the Board of Trustees or Directors of the aforementioned Funds, Global exercises investment discretion over the investments identified with the number 21 under Item 7 in the attached tables.
• Subject to guidelines established by the Boards of Trustees or Directors of the aforementioned Funds, MDT exercises investment discretion over the investments identified with the number 22 under Item 7 in the attached tables.
• HIML exercises investment discretion over certain investments identified with number 23.

Industry Context

This filing provides insight into the investment strategies of a major asset manager, which can be useful for understanding broader market trends and sector allocations within the financial industry.

Comparison to Industry Standards

• Comparing Federated Hermes' holdings to those of other large investment managers like BlackRock, Vanguard, and State Street can reveal differences in investment philosophy and sector preferences.
• Analyzing the overlap in top holdings with industry benchmarks such as the S&P 500 or MSCI World Index can provide insights into Federated Hermes' active management strategy.
• Comparing the portfolio's sector allocation to industry averages can highlight areas where Federated Hermes is overweight or underweight relative to its peers.
• For example, if Federated Hermes has a significantly larger allocation to technology stocks compared to Vanguard's total stock market index fund, it suggests a more bullish outlook on the technology sector.

Stakeholder Impact

• Shareholders can use this information to understand the composition of the funds managed by Federated Hermes.
• The filing provides transparency to clients and regulators regarding the firm's investment activities.
• The investment decisions reflected in the filing can impact the performance of the underlying companies and the broader market.

Key Dates