Dorsey Asset Management Portfolio in 2026: Top Holdings & Recent Changes
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Dorsey Asset Management, led by renowned fund manager Pat Dorsey, showcases its disciplined approach to quality compounders in the latest 13F filing. Their $1.11B portfolio reflects bold moves with multiple new buys and strategic trims, maintaining ultra-concentrated exposure across just 9 positions amid high turnover.
Portfolio Overview: The Power of 100% Concentration
Portfolio Highlights (Q3’2025): - Market Value: $1,112.6M - Top 10 Holdings: 100.0% - Portfolio Size: 9 -1 - Average Holding Period: 13 quarters - Turnover: 33.3%
The Dorsey Asset Management portfolio exemplifies extreme concentration, with the top 10 holdings comprising the entire 100% of assets under management. This structure underscores Pat Dorsey's philosophy of betting big on a handful of high-quality businesses where deep competitive advantages—often called "moats"—drive long-term outperformance. The reduction to 9 positions from the prior quarter signals ruthless portfolio pruning, eliminating distractions to focus on the strongest convictions.
With an average holding period of 13 quarters (over three years), Dorsey demonstrates patience typical of quality-focused investors, avoiding the pitfalls of frequent trading. Yet the 33.3% turnover reveals active management, willing to exit underperformers like WIX entirely while initiating fresh positions. This balance of conviction and adaptability positions the portfolio to capitalize on structural trends in technology, industrials, and healthcare.
Access the full Dorsey Asset portfolio tracker on ValueSense for real-time updates and intrinsic value analysis.
Top Holdings: New Bets on Danaher, ASML, and AerCap Lead the Charge
The Q3 2025 portfolio kicks off with aggressive new positions, starting with Danaher Corporation (DHR) at 15.3%, a fresh buy signaling confidence in its life sciences and diagnostics dominance. Close behind is ASML Holding N.V. (ASML) (15.1% portfolio weight, Buy), the semiconductor equipment leader essential for AI chip production, followed by AerCap Holdings N.V. (AER) (13.7%, Buy), a aircraft leasing play betting on aviation recovery.
Meta Platforms, Inc. (META) holds steady at 12.7% despite a significant Reduce 21.58% trim, suggesting profit-taking after strong gains while maintaining exposure to digital advertising growth. New entrant AutoZone, Inc. (AZO) (11.5%, Buy) adds defensive auto parts retailing, complemented by Alphabet Inc. (GOOG) (9.4%, Buy) for search and cloud leadership. Booking Holdings Inc. (BKNG) (8.2%, Buy) and Royalty Pharma plc (RPRX) (7.5%, Buy) round out the new buys, tapping travel recovery and biotech royalties.
Trims include Enovis Corporation (ENOV) (6.5%, Reduce 6.03%), a medtech name, while Wix.com Ltd. (WIX) was completely sold (Sell 100%, now 0.0%). These moves highlight Dorsey's focus on refining toward higher-conviction quality names across tech infrastructure, industrials, and healthcare.
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What the Portfolio Reveals About Dorsey's Strategy
Dorsey Asset's Q3 moves paint a clear picture of a strategy centered on quality compounders with durable moats, prioritizing businesses with pricing power and structural tailwinds over cyclical growth stories.
- Tech Infrastructure Tilt: Heavy exposure to ASML, META, and GOOG (over 37% combined) bets on AI, semiconductors, and digital platforms as multi-decade themes.
- Industrial and Healthcare Balance: DHR, AER, and RPRX provide diversification into resilient sectors with recurring revenue.
- Risk Management via Concentration: 100% in top 10 reflects high conviction but demands precise selection; trims in META and ENOV show discipline in rebalancing.
- Global Geographic Spread: European names like ASML and AER add international flavor without excessive emerging market risk.
This portfolio signals optimism in innovation-driven economies while trimming frothier positions.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Danaher Corporation | $170.7M | 15.3% | Buy |
| ASML Holding N.V. | $167.7M | 15.1% | Buy |
| AerCap Holdings N.V. | $152.9M | 13.7% | Buy |
| Meta Platforms, Inc. | $141.2M | 12.7% | Reduce 21.58% |
| AutoZone, Inc. | $128.2M | 11.5% | Buy |
| Alphabet Inc. | $104.6M | 9.4% | Buy |
| Booking Holdings Inc. | $91.7M | 8.2% | Buy |
| Royalty Pharma plc | $82.9M | 7.5% | Buy |
| Enovis Corporation | $72.8M | 6.5% | Reduce 6.03% |
| Wix.com Ltd. | $0.0 | 0.0% | Sell 100% |
This table reveals Dorsey Asset's hallmark ultra-concentration, with the top three holdings alone commanding 44.1% of the $1.11B portfolio. New buys dominate the leaderboard—six of the top eight are fresh positions—indicating a portfolio rebuild around industrial tech leaders like DHR and ASML. The complete exit from WIX and trims in big tech like META demonstrate willingness to act decisively, reducing position sizes from prior peaks to manage valuation risks. Overall, no single holding exceeds 15.3%, providing balanced conviction without over-reliance.
Investment Lessons from Pat Dorsey's Quality Moat Strategy
Pat Dorsey, author of The Little Book That Builds Wealth and moat expert, imparts timeless principles through this portfolio:
- Hunt for Economic Moats: Every position, from Danaher's diagnostics dominance to ASML's lithography monopoly, features defensible advantages.
- Concentrate on What You Know: 100% in 9 names demands deep research—emulate by sizing positions based on conviction levels.
- Trim Winners, Exit Losers: Reducing META by 21.58% and selling WIX 100% shows discipline in taking profits and cutting dead weight.
- Long Holding Periods Pay Off: 13-quarter average tenure rewards patience in compounders like AutoZone.
- Active Turnover in High Conviction: 33.3% turnover isn't churn—it's refinement toward better opportunities.
Track Dorsey's moves on ValueSense to apply these lessons.
Looking Ahead: What Comes Next?
With portfolio size shrinking to 9 positions and high turnover, Dorsey Asset appears poised for further optimization. The absence of cash specifics in 13F filings suggests full deployment, but new buys like DHR and RPRX indicate capacity for additional quality industrials or healthcare if valuations dip. AI tailwinds could boost ASML and GOOG, while aviation recovery supports AER.
In a market facing potential volatility from rates or geopolitics, this moat-heavy setup offers resilience. Watch for opportunistic adds in undervalued tech infrastructure, trackable via ValueSense's real-time 13F alerts.
FAQ about Dorsey Asset Management Portfolio
Q: What are the biggest changes in Dorsey Asset's Q3 2025 13F filing?
A: Major moves include new buys in DHR 15.3%, ASML 15.1%, AER 13.7%, AZO, GOOG, BKNG, and RPRX; trims in META (Reduce 21.58%) and ENOV (Reduce 6.03%); and full exit from WIX.
Q: Why is Dorsey Asset's portfolio so concentrated?
A: Pat Dorsey focuses on 9 high-moat businesses comprising 100% of the portfolio, believing broad diversification dilutes returns from top ideas. This mirrors his moat investing philosophy, prioritizing deep understanding over safety in numbers.
Q: What sectors does Dorsey Asset favor?
A: Heavy tech infrastructure (ASML, META, GOOG), industrials (DHR, AER), consumer/retail (AZO, BKNG), and healthcare (RPRX, ENOV).
Q: How can I track Dorsey Asset Management's portfolio?
A: Use ValueSense's superinvestor tracker at https://valuesense.io/superinvestors/dorsey-asset for instant 13F alerts. Note the 45-day reporting lag—filings reflect positions from quarter-end, so pair with intrinsic value tools for current analysis.
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