Jeff Auxier - Auxier Asset Management Portfolio Q2'2025: Top Holdings & Recent Changes
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Jeff Auxier, founder of Auxier Asset Management, continues to exemplify patient, quality-focused value investing with his Q2 2025 portfolio that spans $680.8 million across 173 positions. With an average holding period of 33 quarters—over eight years—Auxier's approach stands in stark contrast to today's momentum-chasing market participants. His recent quarterly activity reveals a deliberate portfolio refinement strategy, with selective trimming of winners and measured additions to healthcare positions, all while maintaining an exceptionally low turnover rate of just 6.4%.
Portfolio Architecture: Patience Meets Prudence
Portfolio Highlights (Q2 2025): - Market Value: $680.8M - Top 10 Holdings: 34.1% - Portfolio Size: 173 -1 - Average Holding Period: 33 quarters - Turnover: 6.4%
Auxier's portfolio construction reflects a philosophy that prizes diversification without dilution. While his top 10 holdings represent just 34.1% of total assets—a relatively modest concentration compared to activist investors—this measured approach allows Auxier to deploy capital across quality businesses trading at reasonable valuations without excessive single-stock risk. The portfolio spans 173 positions, suggesting a deep bench of investment opportunities across market capitalizations and sectors.
The remarkably low 6.4% turnover rate and 33-quarter average holding period underscore Auxier's conviction in his investment process. Rather than chasing quarterly performance, he allows quality businesses time to compound value. This quarter's single position reduction brings the total count to 173, indicating a highly selective culling process that prioritizes only the most compelling opportunities while maintaining existing winners.
Top Holdings: Quality Blue-Chips with Selective Adjustments
The portfolio is anchored by Microsoft Corporation (MSFT), commanding 7.4% of assets at $50.2 million, though Auxier trimmed this position by 0.42% during the quarter. Philip Morris International (PM) holds the third spot at 5.6% with $38.3 million invested, reduced by 0.50% as the stock approached fair value. The Kroger Co. (KR) represents 3.7% of the portfolio at $25.3 million but saw a more meaningful 2.16% reduction, signaling possible profit-taking in the grocery sector.
Healthcare names received notable attention this quarter. UnitedHealth Group (UNH) captured a 1.03% addition, bringing the position to $20.1 million or 3.0% of assets—a vote of confidence in the managed care giant despite regulatory headwinds. Elevance Health (ELV) received an even larger 1.89% boost to $14.3 million, suggesting Auxier sees opportunity in healthcare services providers trading below intrinsic value.
Financial services maintain substantial representation. Bank of New York Mellon holds 2.9% of assets at $19.6 million, reduced by 1.31%, while Bank of America represents 2.2% at $15.1 million after a 2.00% trim. Payment processors remain core holdings, with Mastercard (MA) at 2.8% ($19.2 million) despite a significant 7.84% reduction, and Visa (V) at 2.1% ($14.2 million) after a 0.77% cut.
Technology exposure extends beyond Microsoft through Alphabet (GOOGL), which received a 1.53% addition to reach $15.8 million or 2.3% of the portfolio. This selective increase in big-cap tech suggests Auxier remains comfortable owning dominant platforms with durable competitive advantages when valuations are reasonable.
What the Portfolio Reveals About Auxier's Current Strategy
Auxier's Q2 moves illuminate several strategic priorities that define his value investing approach. Quality businesses with pricing power dominate the holdings—from Microsoft's software moat to Philip Morris's brand strength to payment processors' network effects. These aren't speculative growth stories; they're established franchises generating predictable cash flows.
The healthcare additions signal conviction in a sector facing short-term pressure. While many investors fled healthcare amid political uncertainty, Auxier moved in the opposite direction by boosting UnitedHealth and Elevance Health. This contrarian positioning reflects classic value investing: buying quality businesses when temporary concerns create valuation opportunities.
Profit-taking discipline is evident in the selective reductions across top holdings. The 7.84% Mastercard trim and 2.16% Kroger reduction suggest Auxier actively manages position sizes as stocks approach fair value, recycling capital into better opportunities rather than holding indefinitely. This dynamic rebalancing maintains portfolio optimization while respecting his long-term holding philosophy.
Concentrated diversification characterizes the portfolio structure—enough diversification to manage risk across 173 names, but sufficient concentration in top conviction ideas to drive meaningful performance. The 34.1% top-10 weighting strikes a balance between the ultra-concentrated activist approach and excessive diversification that dilutes returns.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Microsoft Corporation (MSFT) | $50.2M | 7.4% | Reduce 0.42% |
| Philip Morris International Inc. (PM) | $38.3M | 5.6% | Reduce 0.50% |
| The Kroger Co. (KR) | $25.3M | 3.7% | Reduce 2.16% |
| UnitedHealth Group Incorporated (UNH) | $20.1M | 3.0% | Add 1.03% |
| Bank of New York Mellon Corp | $19.6M | 2.9% | Reduce 1.31% |
| Mastercard Incorporated (MA) | $19.2M | 2.8% | Reduce 7.84% |
| Alphabet Inc. (GOOGL) | $15.8M | 2.3% | Add 1.53% |
| Bank of America Corp | $15.1M | 2.2% | Reduce 2.00% |
| Elevance Health Inc. (ELV) | $14.3M | 2.1% | Add 1.89% |
| Visa Inc. (V) | $14.2M | 2.1% | Reduce 0.77% |
The concentration metrics reveal a portfolio built for steady compounding rather than home-run swings. With the largest position (Microsoft) representing just 7.4% of assets and the tenth-largest at 2.1%, Auxier maintains careful position sizing that prevents any single holding from dominating performance. This measured approach allows him to sleep well at night while still maintaining meaningful exposure to his best ideas.
The relatively tight range between top positions—from 7.4% down to 2.1%—suggests Auxier views these holdings as comparably attractive opportunities rather than having extreme conviction variance. This contrasts sharply with concentrated investors who might hold 20-30% positions in their top ideas, reflecting different risk tolerances and investment philosophies.
Investment Lessons from Auxier's Disciplined Approach
Auxier's portfolio management demonstrates several timeless value investing principles that retail investors can apply:
Patience compounds returns more than activity. An average 33-quarter holding period and 6.4% turnover rate prove that wealth accumulation favors those who can sit still. Most investors would dramatically improve results by simply reducing trading frequency and allowing quality businesses to compound.
Rebalancing beats rigid buy-and-hold. While Auxier holds for years, he actively manages position sizes through selective trimming and adding. The Mastercard reduction and healthcare additions show that disciplined rebalancing—taking profits from winners and adding to temporarily depressed quality names—enhances long-term performance.
Diversification should match your edge. Auxier's 173-position portfolio acknowledges that no investor has perfect foresight. By spreading capital across numerous quality opportunities, he reduces single-stock risk while maintaining exposure to long-term wealth creation. This level of diversification makes sense for portfolios focused on steady compounding rather than concentrated bets.
Contrarian positioning requires genuine conviction. Adding to healthcare while others flee demands deep research and confidence in your analysis. Auxier's healthcare additions aren't random—they reflect fundamental analysis concluding that quality businesses are mispriced due to temporary sentiment, not permanent impairment.
Looking Ahead: Positioning for Long-Term Value Creation
Auxier's current portfolio positioning suggests confidence in established quality businesses across technology, financial services, and healthcare. The selective trims in payment processors and consumer staples likely freed capital for redeployment into more compelling opportunities, with healthcare receiving immediate allocations.
The remarkably stable portfolio composition—losing just one position this quarter—indicates Auxier isn't finding abundant new opportunities at current valuations. This disciplined patience serves investors well during periods of market exuberance, as it prevents reaching for returns in overvalued situations. Instead, Auxier continues extracting value from existing holdings while waiting for genuine bargains.
Healthcare's increased weighting positions the portfolio for potential outperformance if political concerns prove overdone. Both UnitedHealth and Elevance Health trade at discounts to historical multiples despite solid fundamentals, offering asymmetric risk-reward profiles that value investors covet. If regulatory fears fail to materialize or business execution exceeds expectations, these additions could drive meaningful alpha.
The technology and financial services exposure provides portfolio ballast through dominant franchises with secular tailwinds. Microsoft, Alphabet, Mastercard, and Visa aren't value traps—they're quality growth businesses acquired at reasonable prices. This barbell approach—adding beaten-down healthcare while maintaining quality tech/finance—balances cyclical and secular growth opportunities.
FAQ about Auxier Asset Management Portfolio
Q: Why does Jeff Auxier hold so many positions compared to concentrated investors?
Auxier's 173-position portfolio reflects a diversification philosophy that prioritizes capital preservation alongside growth. Rather than betting heavily on a handful of ideas, he spreads risk across numerous quality businesses, reducing the impact of any single misstep. This approach suits investors seeking steady long-term compounding with lower volatility than concentrated portfolios. The 33-quarter average holding period proves diversification doesn't mean trading frequently—Auxier holds each position for years, just with smaller individual weightings.
Q: What does the 6.4% turnover rate tell us about Auxier's investment approach?
The exceptionally low 6.4% quarterly turnover rate—implying only about 25% annual turnover—demonstrates remarkable patience and conviction in Auxier's investment process. Most mutual funds exhibit 80-100% annual turnover, constantly churning positions in pursuit of short-term performance. Auxier's approach minimizes trading costs, reduces tax drag, and allows compounding to work over multi-year periods. This metric alone distinguishes his philosophy from momentum-driven strategies.
Q: Should retail investors follow Auxier's healthcare additions into UnitedHealth and Elevance?
Following any investor's moves requires understanding the 45-day reporting lag inherent in 13F filings. By the time these healthcare additions became public, market conditions may have shifted significantly. That said, Auxier's healthcare positioning demonstrates a contrarian value approach worth studying: buying quality businesses facing temporary headwinds rather than chasing recent winners. Retail investors should conduct independent research on these names rather than blindly copying positions, using Auxier's moves as idea generation rather than buy signals.
Q: How can I track changes to Auxier's portfolio in real-time?
ValueSense's superinvestor tracking tool provides comprehensive monitoring of Auxier's 13F filings, including position changes, portfolio composition, and historical performance. While 13F filings have a mandatory 45-day reporting lag—meaning Q2 positions filed in mid-August reflect June 30 holdings—ValueSense updates immediately upon filing to provide the fastest access to this information. The platform also offers comparative analysis across multiple superinvestors, helping investors identify consensus ideas and contrarian positions.
Q: What makes Auxier's 33-quarter average holding period significant?
The 33-quarter (8.25-year) average holding period represents extraordinary patience in an era of high-frequency trading and quarterly performance obsession. This metric suggests Auxier views stocks as ownership stakes in businesses rather than trading vehicles, allowing quality companies years to execute strategies and compound value. For retail investors, this holding period provides a valuable benchmark: if you can't envision holding a stock for 5-8 years, you probably shouldn't own it at all.
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