Business Context and Reporting Period
This Form 13F-HR filing is submitted by Hilltop Holdings Inc., an institutional investment manager, for the quarter ended March 31, 2013. The report discloses equity holdings and investment discretion for Hilltop Holdings Inc. and two other included managers: PlainsCapital Corporation and PlainsCapital Bank. The filing was signed on May 15, 2013.
Key Financial Metrics
As a Form 13F filing, this document reports portfolio holdings rather than the operating financial results (revenue, profit, cash flow) of the reporting manager. Key portfolio metrics include:
- Total Portfolio Value: $138,722,000 (reported in thousands).
- Total Number of Holdings: 160 entries.
- Number of Included Managers: 2 (PlainsCapital Corporation and PlainsCapital Bank).
- Largest Single Holding: SWS Group Inc. (Value: $8,926,000; Shares: 1,475,387).
- Significant Holdings: Kayne Anderson MLP Investment Co. ($5,955,000), IShares Trust Barclays 1-3YR CR ($7,078,000), and IShares Trust Barclays MBS BD ($6,901,000).
Material Changes and Portfolio Composition
The filing does not provide comparative data against the prior period (December 31, 2012) to quantify material changes in holdings or value. However, the current portfolio composition reveals:
- Asset Class Mix: The portfolio is diversified across individual equities and Exchange Traded Funds (ETFs), with significant exposure to fixed income via IShares Trust products (e.g., Agency Bond Fund, Mortgage Pass-Through Securities).
- Investment Discretion: Hilltop Holdings Inc. exercises "Defined" investment discretion for the majority of holdings, shared between the reporting manager and the included managers (PlainsCapital Corporation and PlainsCapital Bank). SWS Group Inc. is the only holding listed with "Sole" discretion.
- Self-Holding: The portfolio includes a significant position in Hilltop Holdings Inc. common stock (155,769 shares valued at $2,101,000).
Guidance, Outlook, and Risks
This filing type does not contain management commentary, forward-looking guidance, or specific risk factors regarding the reporting manager's operations. The primary disclosure relates to regulatory compliance under Rule 13f-1(b) of the Securities Exchange Act of 1934, confirming that Hilltop Holdings Inc. may be deemed to have investment discretion for PlainsCapital Corporation and PlainsCapital Bank over certain securities.
Important Facts for Investor Verification
- Portfolio Concentration: Verify the impact of the top 10 holdings, which include a mix of large-cap equities (e.g., Apple, Microsoft, Coca-Cola) and significant ETF positions.
- Related Party Transactions: Note the substantial holding of Hilltop Holdings Inc. stock ($2.1M) and the inclusion of PlainsCapital entities, indicating potential related-party investment strategies.
- Fixed Income Exposure: Confirm the specific risk profile of the large IShares Trust holdings, which represent a significant portion of the portfolio's value.
- Discretionary Authority: Understand that voting authority and investment decisions for most holdings are shared between Hilltop Holdings Inc. and the two included managers.