Kahn Brothers Group Portfolio Q3'2025: Top Holdings & Recent Changes
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Kahn Brothers Group, the value-focused firm inspired by deep fundamental work and patience, continues to apply a disciplined approach to mispriced securities. Their Q3’2025 portfolio shows a concentrated bet on financials, healthcare, and select special situations, with $531.8M allocated across 53 positions and a clear emphasis on high-conviction core holdings complemented by smaller, opportunistic stakes.
Explore the full Kahn Brothers Group portfolio on ValueSense
The Big Picture: Concentrated Value with Selective Turnover
Portfolio Highlights (Q3 2025): - Market Value: $531.8M
- Top 10 Holdings: 81.6%
- Portfolio Size: 53 +3
- Average Holding Period: 16 quarters
- Turnover: 13.2%
The Kahn Brothers Group portfolio remains highly concentrated at the top, with 81.6% of assets in the first 10 names. This underscores a classic value-investing discipline: a handful of carefully researched positions drive most of the economic outcome, while the long tail of smaller stakes provides optionality and diversification without diluting conviction.
With 53 positions (up by three this quarter) and a modest 13.2% turnover, the firm is clearly not trading around noise. Instead, the Q3’2025 holdings reflect incremental repositioning—small trims and adds around core holdings—rather than wholesale strategy changes. The 16‑quarter average holding period further confirms a long-term orientation typical of deep value investors.
This quarter’s moves show the team refreshing risk/reward in key sectors: trimming where valuations have run ahead of fundamentals, adding to out-of-favor quality, and selectively buying new names that fit their margin of safety framework. For followers of the Kahn Brothers portfolio, the message is consistency with nuance, not a strategic pivot.
Top Holdings Overview: Financials, Healthcare, and Special Situations
The Q3 2025 portfolio is anchored by a blend of large financial institutions, global healthcare names, and diversified industrial/consumer plays, with notable activity across almost all of the top positions.
The largest disclosed holding with changes is Citigroup Inc. at 16.7% of the portfolio, where Kahn Brothers opted to Reduce 1.13%, a subtle trim rather than an exit. That still leaves $89.0M and 876,660 shares committed, suggesting continued conviction in the risk/reward of this global bank, likely balancing capital return potential with cyclical macro risk.
In international healthcare, BAYER AG SPONS ADR sits at 10.6% of assets with $56.3M invested. The position was an Add 0.87% this quarter, indicating the team sees improving value or catalyst potential in Bayer’s diversified pharma and crop science franchise despite ongoing market skepticism. (Ticker is reported as “_” in the filing, but the economic exposure is clearly material.)
Regional and specialized financials also play a central role. Flagstar Financial, Inc. represents 9.3% of the portfolio at $49.6M, where Kahn Brothers chose to Reduce 0.56%. The modest reduction suggests risk management amid interest-rate or credit-cycle uncertainty, while still leaning into the upside of a well-capitalized lender.
In media and entertainment, The Walt Disney Company accounts for 8.5% of the portfolio $45.2M. Here the firm executed an Add 0.53%, signaling continued confidence in Disney’s long-term IP, streaming pivot, and parks business—even as the market debates near-term earnings volatility.
Healthcare is another pillar. Organon & Co. stands at 7.3% and $38.6M, with an Add 3.63%—one of the more assertive increases this quarter. That move highlights Kahn Brothers’ appetite for spin-offs and underappreciated pharma assets trading at what they likely see as a discount to normalized earnings and cash flows.
Energy exposure comes via BP p.l.c., a 7.0% position at $37.4M, marked simply as Buy. This indicates either a new or meaningfully expanded stake in a supermajor that combines hydrocarbons cash flow with a transition strategy, fitting a contrarian value profile when energy sentiment swings.
Within large-cap pharma, Merck & Co., Inc. represents 6.8% and $36.4M, but Kahn Brothers chose to Reduce 11.56%, one of the more significant trims in the book. This suggests a proactive move to realize gains or reallocate capital as Merck’s valuation approaches their intrinsic value estimates, even while maintaining sizable exposure.
On the tech and communication side, Alphabet Inc. is a 6.2% position at $32.8M, and notably saw an Add 89.51%. Nearly doubling the stake signals a strong vote of confidence in Alphabet’s core search, cloud, and AI-driven businesses at current prices, blending value and growth in a disciplined way.
Industrial and conglomerate exposure is exemplified by SEABOARD CORP, at 5.3% and $28.2M, where the firm executed a Reduce 10.43%. Seaboard is often thinly traded and complex; trimming here may reflect risk control or portfolio balance rather than a fundamental thesis reversal.
Rounding out the key activity list is IDT Corporation, a 3.9% position at $20.5M, categorized as a Buy. This signals either a fresh or meaningfully expanded mid-sized holding in a diversified telecom and technology company, consistent with the team’s interest in misunderstood, cash-generative businesses outside the market’s spotlight.
Across these 10–11 key names, the pattern is clear: measured trims where valuations have rerated, incremental adds to underappreciated healthcare and quality tech, and selective new buys that fit a long-term value lens.
What the Portfolio Reveals About Kahn Brothers’ Current Strategy
Several strategic themes stand out from the Q3 2025 positioning:
- High-conviction concentration at the top
With 81.6% of capital in the top 10 positions, the firm is comfortable letting a few best ideas drive performance. This is classic value practice: deep research enables concentration, not broad diversification for its own sake. - Sector balance: financials, healthcare, selective tech and energy
The heaviest weights are in financials (e.g., Citigroup, Flagstar), large-cap and specialty pharma (Merck, Organon, Bayer), and energy (BP), complemented by quality franchises like Disney and Alphabet. This mix blends cyclical exposure with defensible moats and strong cash generation. - Dividend and cash-flow orientation
Many top holdings—global banks, integrated energy majors, large pharma—are historically attractive dividend and buyback payers. The combination of yield plus potential multiple expansion is consistent with a value income mindset. - Risk management via trims, not rotations
Reductions in Merck, Citigroup, Flagstar, and Seaboard are incremental rather than drastic. This indicates risk management and profit-taking instead of wholesale thesis abandonment. - Opportunistic buying in misunderstood or temporarily pressured names
Aggressive adds in Alphabet and meaningful increases in Organon and Bayer suggest Kahn Brothers is leaning into volatility when fundamentals remain intact.
Portfolio Concentration Analysis
Using the reported top 10 holdings:
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Citigroup Inc. | $89.0M | 16.7% | Reduce 1.13% |
| BAYER AG SPONS ADR | $56.3M | 10.6% | Add 0.87% |
| Flagstar Financial, Inc. | $49.6M | 9.3% | Reduce 0.56% |
| The Walt Disney Company | $45.2M | 8.5% | Add 0.53% |
| Organon & Co. | $38.6M | 7.3% | Add 3.63% |
| BP p.l.c. | $37.4M | 7.0% | Buy |
| Merck & Co., Inc. | $36.4M | 6.8% | Reduce 11.56% |
| Alphabet Inc. | $32.8M | 6.2% | Add 89.51% |
| SEABOARD CORP | $28.2M | 5.3% | Reduce 10.43% |
With $531.8M in total assets, this top 10 block 81.6% makes the remainder of the book relatively small in economic impact. Any investor studying the Kahn Brothers Group portfolio should therefore focus primarily on these names to understand both risk and potential return.
The largest single position, Citigroup, at 16.7%, emphasizes the firm’s willingness to let a single thesis dominate outcomes—consistent with high-conviction value investing. Meanwhile, the clustering of 6–10% positions in Bayer, Flagstar, Disney, Organon, BP, Merck, and Alphabet suggests a tiered conviction structure: one or two “pillars,” a ring of core holdings, and then a longer tail of smaller, more opportunistic or developing ideas.
Investment Lessons from Kahn Brothers’ Value Discipline
Several practical takeaways emerge for individual investors studying this 13F:
- Concentrate when you truly understand the business
A 16.7% position in Citigroup or 10%+ in Bayer is only rational if you’ve done deep, bottom-up work and can tolerate volatility. Diversification is important, but Kahn Brothers shows that concentration can be a feature, not a bug, when backed by research. - Holding periods matter more than short-term price moves
With a 16‑quarter average holding period, this portfolio is built for multi-year theses, not quarter-to-quarter performance. Long horizons give value ideas time to close the discount to intrinsic value. - Trim, don’t churn
Actions like “Reduce 1.13%” in Citigroup or “Reduce 0.56%” in Flagstar show a nuanced approach: scale positions up or down as risk/reward shifts, rather than constantly swapping entire holdings. - Blend classic value with quality growth
Owning both BP/Bayer and Alphabet demonstrates that value is not limited to low P/E cyclicals. High-quality compounders can be value stocks when purchased below conservative estimates of intrinsic value. - Use volatility to your advantage
Large adds like “Add 89.51%” in Alphabet or “Add 3.63%” in Organon show a willingness to buy more when markets are uncertain and prices are attractive.
Looking Ahead: What Comes Next for Kahn Brothers’ Portfolio?
While 13F filings come with a reporting lag, the current positioning offers clues about how Kahn Brothers might navigate coming quarters:
- Room for further tech and healthcare additions
With Alphabet, Merck, Organon, and Bayer as key holdings, the firm may continue to tilt toward resilient cash-flow generators with durable moats, especially if broader market volatility creates better entry points. - Potential rebalancing in financials if macro shifts
Large stakes in Citigroup and Flagstar give Kahn Brothers leverage to interest rates, credit cycles, and global growth. Expect ongoing fine-tuning—trims or adds—based on evolving macro conditions and bank-specific fundamentals. - Energy and special situations as contrarian levers
The Buy in BP and continued commitment to complex names like Seaboard and IDT suggest that the firm will keep hunting in less crowded, harder-to-analyze corners of the market where competition from quantitative and momentum strategies is weaker. - Selective deployment of incremental capital
With 53 positions and moderate turnover, new capital is likely to flow first into existing high-conviction ideas trading below updated intrinsic value estimates, rather than into entirely new sectors.
For investors tracking Kahn Brothers, monitoring future 13F filings will be key to spotting where conviction is rising or fading.
FAQ about Kahn Brothers Group Portfolio
Q: What were the most notable changes in Kahn Brothers’ Q3 2025 portfolio?
The most striking moves include a large Add 89.51% to Alphabet Inc., a meaningful Add 3.63% to Organon & Co., and an 11.56% Reduce in Merck & Co., Inc. Smaller trims in Citigroup, Flagstar Financial, and Seaboard, alongside Buy activity in BP and IDT Corporation, round out the quarter’s activity.
Q: How concentrated is the Kahn Brothers portfolio?
The portfolio is highly concentrated at the top: 81.6% of total market value sits in the top 10 holdings, led by Citigroup at 16.7% and Bayer at 10.6%. Although there are 53 positions in total, most of the risk and return is driven by this core group.
Q: What is Kahn Brothers’ typical holding period and turnover?
The average holding period is 16 quarters—about four years—highlighting a long-term, thesis-driven approach. Turnover of 13.2% in Q3 2025 indicates relatively modest trading, with incremental adjustments rather than wholesale rotations.
Q: Which sectors does Kahn Brothers favor today?
The current top positions show a strong tilt toward financials (Citigroup, Flagstar), healthcare and pharma (Bayer, Merck, Organon), energy (BP), and high-quality media and tech (Disney, Alphabet). This mix balances cyclical sensitivity with defensible competitive advantages.
Q: How can I track Kahn Brothers’ portfolio going forward?
You can follow Kahn Brothers’ holdings via quarterly 13F filings, which U.S. institutional managers must submit within 45 days after each quarter-end. Because of this 45‑day reporting lag, positions you see are historical snapshots, not real-time trades. Platforms like ValueSense aggregate these filings and provide updated analysis, visualizations, and historical changes—visit the dedicated page at Kahn Brothers Group’s portfolio for ongoing updates.
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