Glenn Welling - Engaged Capital Portfolio Q2'2025: Top Holdings & Recent Changes
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Glenn Welling, founder of Engaged Capital, continues to sharpen his activist investing approach with a focused and dynamic portfolio. His Q2’2025 portfolio reflects a decisive shift, with only seven positions and bold moves in consumer, healthcare, and logistics names. This quarter’s 13F filing reveals a willingness to double down on conviction bets while pruning exposure elsewhere, underscoring Engaged Capital’s reputation for hands-on engagement and value creation.
Portfolio Overview: Streamlined Conviction and Tactical Adjustments
Portfolio Highlights (Q2’2025): - Market Value: $357.6M - Top 10 Holdings: 100.0% - Portfolio Size: 7 -2 - Average Holding Period: 9 quarters - Turnover: 57.1%
Engaged Capital’s Q2’2025 portfolio is a study in concentration, with all capital allocated across just seven positions. This ultra-focused approach is a hallmark of activist funds, enabling deep operational engagement and meaningful influence on management teams. The portfolio’s 57.1% turnover signals significant repositioning, as Welling exits lower-conviction ideas and reallocates to core holdings.
The average holding period of nine quarters demonstrates a willingness to hold through operational turnarounds, but the recent reduction in portfolio size (down by two positions) highlights a tactical shift toward higher-conviction bets. This disciplined pruning is designed to maximize impact and returns, especially in a market environment where selectivity is paramount.
Top Holdings Analysis: Bold Bets and Tactical Reductions
The portfolio is anchored by a series of decisive moves. YETI Holdings, Inc. now commands 19.1% of capital after a substantial 40.10% addition, signaling strong conviction in the premium consumer brand’s turnaround potential. Evolent Health, Inc. 18.4% also saw a notable 13.03% increase, reflecting confidence in healthcare technology’s secular growth.
On the other hand, V.F. Corporation 17.8% was trimmed by 1.22%, and Portillo's Inc. 15.8% was reduced by 11.82%, suggesting a more cautious stance on these consumer-facing names amid shifting macro headwinds. GXO Logistics, Inc. 12.2% was also pared back by 1.64%, possibly to lock in gains or rebalance risk.
A standout move this quarter is the doubling of Freshpet, Inc. 11.8%, with a 101.86% increase in shares, indicating a high-conviction bet on the pet food disruptor’s growth trajectory. BRC Inc. rounds out the portfolio at 5.0%, with no change in position, providing a stable anchor.
These moves collectively reflect a willingness to concentrate capital in high-conviction ideas while actively managing risk through selective reductions.
What the Portfolio Reveals About Current Strategy
- Activist Engagement: The portfolio’s concentration allows for deep operational involvement, a core tenet of Engaged Capital’s activist strategy.
- Consumer and Healthcare Focus: Heavy allocations to YETI, V.F. Corporation, and Evolent Health highlight a focus on sectors where operational improvements can drive outsized returns.
- Dynamic Position Sizing: High turnover and significant changes in position size demonstrate tactical flexibility, with Welling willing to quickly scale up or trim positions as the investment thesis evolves.
- Risk Management: The reduction in portfolio size and selective trimming of positions indicate a disciplined approach to risk, ensuring that only the highest-conviction ideas remain.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| YETI Holdings, Inc. | $68.2M | 19.1% | Add 40.10% |
| Evolent Health, Inc. | $65.9M | 18.4% | Add 13.03% |
| V.F. Corporation | $63.7M | 17.8% | Reduce 1.22% |
| Portillo's Inc. | $56.4M | 15.8% | Reduce 11.82% |
| GXO Logistics, Inc. | $43.7M | 12.2% | Reduce 1.64% |
| Freshpet, Inc. | $42.1M | 11.8% | Add 101.86% |
| BRC Inc. | $17.7M | 5.0% | No change |
Engaged Capital’s top seven positions account for 100% of the portfolio, underscoring an exceptionally high level of conviction and focus. The largest positions—YETI, Evolent Health, and V.F. Corporation—each approach or exceed 18% of assets, while even the smallest holding, BRC Inc., maintains a meaningful 5% allocation. This structure enables Engaged Capital to exert significant influence over its portfolio companies, a key advantage in activist investing.
Investment Lessons from Glenn Welling’s Activist Playbook
- Concentration Drives Influence: By focusing on a handful of positions, Engaged Capital can engage deeply with management and drive operational change.
- Dynamic Rebalancing: Willingness to add aggressively to winners and trim laggards reflects a disciplined, thesis-driven approach.
- Sector Specialization: Targeting consumer and healthcare sectors allows for repeatable value creation where Engaged Capital has expertise.
- Holding Period Discipline: An average holding period of nine quarters demonstrates patience, but high turnover shows flexibility when the thesis changes.
- Risk Management: Pruning the portfolio and reducing exposure to lower-conviction names helps contain downside risk.
Looking Ahead: What Comes Next?
With only seven positions, Engaged Capital has ample dry powder to deploy should new activist opportunities arise. The high turnover suggests Welling is actively scanning for fresh ideas or further operational improvements within the existing portfolio. Given the fund’s focus on consumer and healthcare, future investments may continue to target these sectors, especially companies with underappreciated turnaround potential. The current positioning sets the stage for outsized returns if core holdings execute on their strategic plans.
FAQ about Engaged Capital Portfolio
Q: What were the most significant changes in Engaged Capital’s Q2 2025 portfolio?
The most notable moves were a 101.86% increase in Freshpet, Inc., a 40.10% addition to YETI Holdings, and double-digit reductions in Portillo's Inc.. These changes reflect shifting conviction and tactical rebalancing.
Q: How concentrated is Engaged Capital’s portfolio?
Exceptionally concentrated—100% of capital is allocated across just seven positions, with the top three holdings making up over 55% of the portfolio.
Q: What is Glenn Welling’s approach to risk management?
Welling manages risk by maintaining a focused portfolio, trimming lower-conviction positions, and scaling up in companies where operational engagement can drive value.
Q: Which sectors does Engaged Capital favor?
The portfolio is heavily weighted toward consumer discretionary, healthcare, and logistics, reflecting a preference for sectors where activist involvement can unlock value.
Q: How can investors track Engaged Capital’s moves?
You can follow Engaged Capital’s latest 13F filings and portfolio changes on ValueSense. Keep in mind that 13F filings are reported with a 45-day lag, so real-time positions may differ.
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