In a notable departure from its typical low-turnover approach, Lindsell Train disclosed significant portfolio changes in its latest 13F filing. The firm, known for its long-term, concentrated bets on high-quality companies with durable franchises, initiated a new position in alternative asset manager KKR, valued at over $61 million. This move is particularly interesting given the firm's stated preference for low-capital-intensity businesses. The new stake was funded by reductions across several of its largest, long-standing holdings.
The most significant changes included trimming stakes in top positions such as Alphabet (GOOGL), TKO Group (TKO), Thermo Fisher Scientific (TMO), Disney (DIS), and Mondelez (MDLZ). Despite the share reductions, both GOOGL and TKO saw their portfolio weights increase, indicating strong underlying stock performance in the quarter. These sales occurred during a period of underperformance for the fund, which has prompted more portfolio activity than is historically characteristic of the manager.
While specific commentary on these trades was not available, Lindsell Train has recently expressed a view of buying into quality companies they believe have been unfairly punished by market trends. For instance, a manager at the firm recently justified adding to software company Intuit by arguing the 'AI loser' sell-off was a mispricing of the company's value. This move to trim some winners and initiate a stake in a new area like asset management could signal a strategic re-allocation of capital toward businesses the firm sees as undervalued in the current market.