Andrew Brenton - Turtle Creek Asset Management Inc. Portfolio Q2’2025: Top Holdings & Recent Changes
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Andrew Brenton, founder and CEO of Turtle Creek Asset Management Inc., continues to demonstrate disciplined value investing with a dynamic approach to portfolio management. The firm's Q2’2025 portfolio showcases $3.45 billion deployed across 41 positions, reflecting both conviction and adaptability as several top holdings saw notable adjustments this quarter.
Portfolio Overview: Adaptive Value Investing in Action
Portfolio Highlights (Q2’2025): - Market Value: $3,445.0M - Top 10 Holdings: 55.8% - Portfolio Size: 41 +3 - Average Holding Period: 16 quarters - Turnover: 12.2%
Turtle Creek’s portfolio remains highly diversified, with the top 10 holdings representing just over half of total assets. This quarter saw the addition of three new positions, indicating a willingness to adapt and capitalize on emerging opportunities. The average holding period of 16 quarters underscores a long-term orientation, while a turnover rate of 12.2% suggests active rebalancing to optimize returns and manage risk.
The firm’s strategy blends concentration in high-conviction ideas with broad sector exposure, balancing stability and upside potential. Notably, several top holdings were trimmed, reflecting a tactical approach to profit-taking and risk management. Turtle Creek’s disciplined process is evident in its measured adjustments, aiming to capture value while maintaining portfolio resilience.
Top Holdings Analysis: Tactical Adjustments and Growth Bets
This quarter’s portfolio is anchored by a series of significant moves among core holdings. ATS Corporation remains a leading position at 7.0% of assets, though it was reduced by 8.56%, signaling profit realization or risk moderation. Celanese Corporation 6.8% also saw a 6.16% reduction, while The Middleby Corporation 5.9% was trimmed by 4.26%.
Financials exposure was adjusted with a 10.24% reduction in Bread Financial Holdings Inc. 6.0%, and Brunswick Corporation 5.7% was reduced by 5.07%. Meanwhile, Turtle Creek increased its stake in CarMax, Inc. by 3.40%, now representing 5.2% of the portfolio, and made a substantial 27.03% addition to Floor & Decor Holdings, Inc. 5.0%, highlighting confidence in consumer discretionary recovery.
Other notable changes include a 5.45% reduction in TFI International Inc. 5.0% and a 4.09% trim in Colliers International Group Inc. 4.7%. Ingersoll Rand Inc. 4.4% was reduced by 2.52%, reflecting ongoing portfolio fine-tuning.
Supplementing these moves, the top 10 holdings collectively account for 55.8% of assets, with each position ranging from 4.4% to 7.0%. This balanced allocation demonstrates Turtle Creek’s commitment to both conviction and diversification, with tactical adjustments reflecting evolving market views.
What the Portfolio Reveals About Current Strategy
- Quality and Value Focus: Turtle Creek continues to prioritize companies with strong fundamentals and attractive valuations, evidenced by long holding periods and selective additions.
- Active Risk Management: The reduction in several top positions suggests a proactive approach to locking in gains and managing exposure amid market volatility.
- Sector Diversification: The portfolio spans industrials, consumer discretionary, financials, and logistics, reducing reliance on any single sector and enhancing resilience.
- Opportunistic Additions: Significant increases in positions like Floor & Decor Holdings, Inc. indicate a willingness to act decisively when conviction is high.
- Long-Term Orientation: With an average holding period of 16 quarters, Turtle Creek demonstrates patience and a focus on compounding returns over time.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| ATS Corporation | $242.0M | 7.0% | Reduce 8.56% |
| Celanese Corporation | $233.9M | 6.8% | Reduce 6.16% |
| BREAD FINANCIAL HOLDINGS INC | $205.3M | 6.0% | Reduce 10.24% |
| The Middleby Corporation | $202.0M | 5.9% | Reduce 4.26% |
| Brunswick Corporation | $197.5M | 5.7% | Reduce 5.07% |
| CarMax, Inc. | $180.9M | 5.2% | Add 3.40% |
| TFI International Inc. | $173.1M | 5.0% | Reduce 5.45% |
| Floor & Decor Holdings, Inc. | $171.5M | 5.0% | Add 27.03% |
| COLLIERS INTERNATIONAL GROUP INC | $163.2M | 4.7% | Reduce 4.09% |
| Ingersoll Rand Inc. | $152.6M | 4.4% | Reduce 2.52% |
The table highlights a portfolio that is both diversified and conviction-driven. No single position dominates, with the largest holding at 7.0% and the tenth at 4.4%. This structure mitigates idiosyncratic risk while allowing meaningful upside from top ideas. The frequent reductions across several holdings suggest a disciplined approach to rebalancing, while notable additions reflect targeted conviction.
Investment Lessons from Andrew Brenton’s Value Approach
- Diversification with Conviction: Concentrate in best ideas, but avoid overexposure to any single stock.
- Active Portfolio Management: Regularly review and adjust positions to reflect changing fundamentals and market conditions.
- Long-Term Patience: Hold quality businesses for extended periods to realize compounding returns.
- Opportunistic Buying: Be prepared to increase exposure when valuation and fundamentals align.
- Risk Management: Trim positions to lock in gains and control downside risk, especially in volatile markets.
Looking Ahead: What Comes Next?
With three new positions added and several top holdings adjusted, Turtle Creek is well-positioned to capitalize on future market shifts. The firm maintains ample diversification and a moderate turnover rate, suggesting readiness to deploy capital into new opportunities as they arise. Areas such as consumer discretionary and industrials may see further activity, especially if macro conditions improve. Investors should watch for continued tactical adjustments and potential new bets in undervalued sectors.
FAQ about Turtle Creek Asset Management Portfolio
Q: What drove the largest changes in Turtle Creek’s Q2’2025 portfolio?
Significant reductions in top holdings like ATS Corporation and Bread Financial reflect profit-taking and risk management, while a major addition to Floor & Decor Holdings, Inc. signals renewed conviction in consumer discretionary.
Q: How concentrated is Turtle Creek’s portfolio?
The top 10 holdings represent 55.8% of assets, with no single position exceeding 7%, balancing conviction with diversification.
Q: How does Turtle Creek manage risk?
By actively trimming positions and maintaining a broad sector mix, the firm limits exposure to individual stocks and sectors, enhancing portfolio resilience.
Q: Which sectors are most represented in the portfolio?
Industrials, consumer discretionary, and financials are prominent, reflecting a value-oriented approach across cyclical and defensive areas.
Q: How can investors track Turtle Creek’s moves?
Follow quarterly 13F filings and use ValueSense’s superinvestor tracker for real-time updates, portfolio breakdowns, and historical analysis. Note the 45-day reporting lag inherent in 13F data.
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