Dennis Hong - ShawSpring Partners Portfolio Q2'2025: Top Holdings & Recent Changes
Welcome to the Value Sense Blog, your resource for insights on the stock market At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Dennis Hong, founder of ShawSpring Partners, continues to demonstrate strategic acumen in his Q2 2025 portfolio. His $792.4 million portfolio showcases a concentrated approach, with all positions within the top 10 holdings. Notable changes include the addition of Okta, Inc. and significant adjustments to existing positions like Intuit Inc. and monday.com Ltd.
Portfolio Overview: Concentrated Excellence
Portfolio Highlights (Q2 2025): - Market Value: $792.4 million - Top 10 Holdings: 100.0% of the portfolio - Portfolio Size: 10 positions - Average Holding Period: 6 quarters - Turnover: 20.0%
ShawSpring Partners' portfolio is characterized by a high concentration in technology and software companies, reflecting a strategic focus on growth and innovation. The average holding period of six quarters indicates a long-term approach, while the 20% turnover suggests active management to optimize returns.
Holdings Overview: Strategic Tech Plays
The portfolio is anchored by Intuit Inc. at 13.8%, though it was reduced by 16.84%. COSTAR GROUP INC was added with an 18.09% increase, reflecting a strategic expansion into real estate technology. Procore Technologies, Inc. also saw an addition of 8.65%, highlighting the fund's interest in construction software. Okta, Inc. was newly acquired, signaling a focus on cybersecurity. Meanwhile, monday.com Ltd. and nCino, Inc. were reduced by 25.74% and 20.92%, respectively, indicating a rebalancing of growth expectations.
What the Portfolio Reveals
ShawSpring Partners' strategy emphasizes quality over growth, focusing on companies with strong market positions and potential for long-term value creation. The portfolio's sector concentration in technology reflects a belief in the sector's resilience and innovation potential. Key themes include: - Quality Over Growth: Prioritizing companies with strong financials and market positions. - Sector Focus: Technology and software remain core sectors. - Geographic Concentration: Primarily focused on U.S.-based companies. - Risk Management: Active adjustments to manage risk and optimize returns.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Intuit Inc. | $109.3M | 13.8% | Reduce 16.84% |
| COSTAR GROUP INC | $109.0M | 13.8% | Add 18.09% |
| Procore Technologies, Inc. | $106.8M | 13.5% | Add 8.65% |
| Okta, Inc. | $95.4M | 12.0% | Buy |
| monday.com Ltd. | $88.4M | 11.2% | Reduce 25.74% |
| nCino, Inc. | $80.8M | 10.2% | Reduce 20.92% |
| Shift4 Payments, Inc. | $77.2M | 9.7% | Reduce 13.37% |
| Braze, Inc. | $70.8M | 8.9% | Add 6.16% |
| Blend Labs, Inc. | $29.4M | 3.7% | No change |
| Vertex, Inc. | $25.2M | 3.2% | Add 45.35% |
The concentration in the top 10 holdings indicates a high-conviction approach, where each position is carefully selected to contribute significantly to the portfolio's overall performance. The recent changes reflect an ongoing effort to optimize the portfolio's growth potential while managing risk.
Investment Lessons from ShawSpring Partners
ShawSpring Partners' portfolio offers several key investment lessons: - Concentration Matters: Focus on a few high-quality positions to maximize returns. - Active Management: Regularly review and adjust holdings to align with market conditions. - Long-Term Focus: Hold positions for extended periods to ride out market fluctuations. - Risk Management: Balance growth with risk by actively managing portfolio composition.
Looking Ahead: What Comes Next?
As ShawSpring Partners continues to navigate the tech landscape, potential areas for new investments may include emerging software companies with strong growth prospects. The current market conditions suggest a cautious approach, with a focus on quality and resilience. The portfolio's setup for the future will likely involve continued strategic adjustments to maintain its competitive edge.
FAQ about ShawSpring Partners Portfolio
Q: What is the significance of ShawSpring Partners' focus on technology stocks?
A: The focus on technology reflects a strategic belief in the sector's long-term growth potential and resilience.
Q: How does ShawSpring Partners manage risk in its portfolio?
A: The fund actively manages risk by regularly reviewing and adjusting its holdings to align with market conditions.
Q: How can investors track ShawSpring Partners' portfolio changes?
A: Investors can track changes through quarterly 13F filings and platforms like ValueSense, which provide insights into superinvestor portfolios.
Q: What is the typical holding period for ShawSpring Partners' investments?
A: The average holding period is six quarters, indicating a long-term investment approach.
Q: How does ShawSpring Partners' portfolio concentration impact its performance?
A: The high concentration in top holdings allows for significant returns from high-conviction positions but also increases risk if those positions underperform.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!