Donald Smith & Co., Inc. Portfolio Q3'2025: Top Holdings & Recent Changes

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Donald Smith & Co., Inc. continues to lean into classic deep value territory, emphasizing cyclical, asset-heavy, and out-of-favor sectors at attractive valuations. Their Q3’2025 portfolio shows a $5.0B collection of high-conviction positions in aircraft leasing, gold miners, financials, homebuilders, and select consumer cyclicals, with measured trims to winners and sizeable adds in insurance, motorcycles, and lodging REITs.

Portfolio Overview: Value Investing with Cyclical Tailwinds

Portfolio Highlights (Q3’2025): - Market Value: $5,014.8M
- Top 10 Holdings: 44.7%
- Portfolio Size: 60 -1
- Average Holding Period: 19 quarters
- Turnover: 8.3%

The Donald Smith & Co. portfolio remains moderately concentrated, with the top 10 positions accounting for 44.7% of assets while still spreading capital across 60 holdings. This balance underscores a philosophy of diversified deep value—owning many cheap names, but letting the best opportunities naturally rise toward the top of the portfolio over time.

An average holding period of 19 quarters (nearly five years) and low turnover of 8.3% highlight a patient, long-term approach rather than short-term trading. This quarter’s moves show incremental adjustments: trimming several long-running winners and cyclicals that have rerated higher, while adding meaningfully to select financials, consumer names, and real estate within the same broad value universe.

The slight reduction in portfolio size to 60 positions suggests ongoing clean-up of lower-conviction ideas while keeping the overall framework intact. For investors studying the Donald Smith & Co. holdings, the message is clear: this is a disciplined strategy that tweaks position sizes at the margin rather than overhauling the portfolio each quarter.

Core Positions and Recent Moves: Cyclicals, Gold, and Financials

The Q3’2025 filing highlights 10 key positions with notable changes, which together anchor the current strategy.

A key pillar is aircraft leasing via AerCap Holdings N.V. (AER), now at 7.5% of the portfolio. Donald Smith & Co. made only a marginal Reduce 0.29% adjustment, keeping this $378.1M stake firmly among their highest-conviction holdings. Gold exposure remains another major theme: IAMGOLD Corporation (IAG) stands at 6.4% with an Reduce 8.48% cut to $318.8M, while Eldorado Gold Corporation (EGO) represents 4.5% after a more aggressive Reduce 24.86% move, trimming the stake to $227.5M.

Gold diversification continues through EQUINOX GOLD CORP at 4.5% of the portfolio and $224.7M in value, where the firm executed a significant Reduce 24.43%. While the JSON does not include a valid ticker (shown as “_”), this reduction across multiple gold names suggests selective profit-taking or risk management within the precious metals sleeve rather than abandoning the theme outright.

In financials, Genworth Financial, Inc. (GNW) remains a sizable 4.4% position at $222.3M even after a Reduce 4.67% adjustment, indicating continued conviction with prudent sizing. Homebuilding exposure is represented by M/I Homes, Inc. (MHO), which sits at 4.0% of the portfolio and $199.5M in value following a modest Reduce 1.93%—a fine-tuning move rather than a change in thesis on housing.

Where the firm is leaning in more aggressively is on select financials and cyclicals. Jackson Financial Inc. (JXN) commands a 4.0% weight at $198.9M after a notable Add 15.63%, signaling rising confidence in this life insurance and annuity play. On the consumer side, Harley-Davidson, Inc. (HOG) has become a 3.8% position at $189.8M following a substantial Add 23.31%, underscoring a contrarian bet on discretionary spending and iconic brands.

Real estate exposure is highlighted by Park Hotels & Resorts Inc. (PK), now 2.8% of the portfolio at $141.9M after an Add 6.31%. This incremental build points to continued optimism in lodging and travel-related recovery. Finally, in energy, Civitas Resources, Inc. (CIVI) also sits at 2.8% with a $140.6M stake, though here Donald Smith & Co. chose to Reduce 3.43%, potentially taking some profits after a strong run while still maintaining meaningful exposure to hydrocarbons.

Taken together, these 10–11 highlighted holdings show Donald Smith & Co. rebalancing within its deep value universe: trimming gold, select financials, and energy at the margin, while adding to insurance, branded consumer cyclicals, and hotel REITs to keep the portfolio aligned with long-term value and cyclical recovery themes.

What the Portfolio Reveals About Current Strategy

Several themes emerge from the latest 13F snapshot:

• Deep Value Over Pure Growth
  The portfolio is dominated by asset-heavy, cyclical, and financial names—aircraft leasing, gold miners, insurers, homebuilders, energy producers, and lodging REITs—rather than high-growth tech. This reflects a focus on discount-to-intrinsic-value and tangible assets rather than momentum-driven growth.
• Sector and Factor Orientation
  There is clear tilting toward:
  • Cyclicals (airlines/aircraft leasing, homebuilders, Harley-Davidson)
  • Commodities and real assets (gold miners, energy via Civitas)
  • Financials (Genworth, Jackson Financial, possibly others in the unseen portion of the book)
    This mix suggests a belief that value, cyclicals, and real-asset exposure will outperform over time from current prices.
• Risk Management via Trims, Not Wholesale Exits
  The pattern of “Reduce” actions—0.29% in AER, 8.48% in IAG, 24.86% in EGO, 24.43% in EQUINOX GOLD CORP, 4.67% in GNW, and 3.43% in CIVI—shows a strategy of managing risk and locking in gains while still keeping core exposures intact.
• Selective Aggression Where Valuations Are Most Compelling
  Larger percentage adds in JXN +15.63%, HOG +23.31%, and PK +6.31% point to areas where the manager sees fresh mispricing or improving risk/reward dynamics.

For investors following the Donald Smith & Co. portfolio, these shifts hint at cautious optimism on the consumer and travel cycle, ongoing faith in financial restructuring stories, and a slightly more conservative stance on gold and energy after strong performance.

Portfolio Concentration Analysis

Using the disclosed top-10 holdings (ranks 2–10 from the JSON):

These nine disclosed names account for a combined 42.9% of the total portfolio, with the full top 10 reaching 44.7%. The concentration is meaningful but not extreme: the largest disclosed position, AER, is 7.5%, and there is a relatively smooth step-down through the rest of the top tier.

The table underscores three important aspects of positioning:

• Thematic Clustering at the Top: Gold miners (IAG, EGO, EQUINOX), financials (GNW, JXN), and cyclicals (MHO, HOG, PK) dominate the top slots, reflecting intentional sector tilts rather than random stock picking.
• Active Rebalancing Within Core Themes: All top-10 names show either “Reduce” or “Add” actions—there are no “No change” entries in the JSON—signaling that Donald Smith & Co. is actively managing position sizes each quarter, even in long-held names. Gold exposure is being pared while financials and consumer cyclicals are being reinforced.
• Risk Spread Across Multiple 3–7% Positions: Instead of a single 15–20% anchor, capital is spread across multiple 3–7.5% positions. This aligns with a value-oriented yet risk-conscious philosophy: let multiple undervalued ideas contribute, rather than relying on a single outsized bet.

Investment Lessons from Donald Smith & Co.’s Deep Value Approach

Several practical takeaways emerge from analyzing the Donald Smith & Co. portfolio:

• Commit to Long Holding Periods
  With an average holding period of 19 quarters, this strategy assumes that value realization can take years. Investors trying to mirror this approach should be prepared for multi-year horizons, not quick flips.
• Concentrate by Theme, Diversify by Name
  The portfolio clusters around themes—gold, financials, housing, energy, travel—but diversifies across multiple names within each theme. This helps manage idiosyncratic risk while retaining exposure to a macro thesis.
• Rebalance, Don’t Overreact
  Most changes are partial adds or trims (e.g., Reduce 4.67% in GNW or Add 6.31% in PK) rather than binary buy/sell decisions. For individual investors, this shows the value of incrementalism in portfolio management.
• Lean In Where Mispricing Grows
  Large percentage adds in JXN and HOG suggest that when Donald Smith & Co. sees a widening gap between price and intrinsic value, they scale up with conviction.
• Use Cyclicals and Hard Assets as Value Hunting Grounds
  Aircraft leasing, gold miners, homebuilders, and hotel REITs are rarely considered “safe” sectors, but they can offer exceptional value when sentiment is depressed. This portfolio is a live case study in how to systematically allocate to such areas.

Looking Ahead: What Comes Next?

Based on the current positioning, several forward-looking implications stand out:

• Gold and Commodities
  Despite trims in IAG, EGO, and EQUINOX GOLD CORP, Donald Smith & Co. retains sizable gold exposure. If inflation volatility or macro uncertainty persists, this sleeve could remain a key performance driver.
• Financials and Insurance
  The increased stake in JXN and ongoing position in GNW indicate a constructive view on financial restructuring, capital returns, or improving fundamentals in insurance and related areas.
• Consumer Cyclicals and Travel
  Bigger bets on HOG and PK position the portfolio to benefit if discretionary spending and travel continue to normalize or strengthen. These are classic “reopening and mid-cycle” plays in a value wrapper.
• Energy Exposure via Civitas
  While CIVI was slightly reduced, the remaining 2.8% position means energy fundamentals still matter for the portfolio. Future quarters will reveal whether this is a long-term core holding or a more tactical trade.

Investors who want to monitor how these themes evolve can track each quarterly update on the dedicated Donald Smith & Co. superinvestor page, where ValueSense aggregates holdings, changes, and historical trends from 13F filings.

FAQ about Donald Smith & Co. Portfolio

Q: What were the biggest changes in Donald Smith & Co.’s Q3’2025 portfolio?

The most notable increases were in Jackson Financial Inc. (JXN) with Add 15.63%, Harley-Davidson, Inc. (HOG) with Add 23.31%, and Park Hotels & Resorts Inc. (PK) with Add 6.31%. On the reduction side, gold miners saw meaningful trims, including Reduce 24.86% in EGO and Reduce 24.43% in EQUINOX GOLD CORP, along with smaller cuts in IAG, GNW, MHO, and CIVI.

Q: How concentrated is the Donald Smith & Co. portfolio?

The top 10 positions represent 44.7% of the total $5.0B portfolio, with the largest disclosed holding, AER, at 7.5%. This reflects a moderately concentrated approach—meaningful conviction in top names while still maintaining diversification across 60 holdings.

Q: What is the typical holding period for Donald Smith & Co. positions?

The reported average holding period is 19 quarters, or nearly five years. This long horizon is consistent with a deep value style that waits for intrinsic value to be recognized by the market rather than timing short-term price swings.

Q: Which sectors does Donald Smith & Co. favor right now?

Based on Q3’2025 holdings with changes, Donald Smith & Co. is heavily involved in: - Gold and precious metals (IAG, EGO, EQUINOX GOLD CORP)
- Financials and insurance (GNW, JXN)
- Cyclicals such as homebuilders (MHO), motorcycles (HOG), lodging REITs (PK), and aircraft leasing (AER)
- Energy via CIVI

Q: How can I track Donald Smith & Co.’s portfolio going forward?

You can follow Donald Smith & Co.’s holdings via quarterly 13F filings, which U.S. institutional managers must submit within 45 days of each quarter’s end. These filings come with a built-in reporting lag, so positions may have changed since the filing date. For easier tracking, historical comparisons, and position-level analysis, use ValueSense’s dedicated superinvestor page at Donald Smith & Co. portfolio, which aggregates and visualizes these updates over time.

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