Mark Hillman - Hillman Value Fund Portfolio Q2'2025: Top Holdings & Recent Changes
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Mark Hillman, the disciplined value investor behind Hillman Capital, has implemented a methodical trimming strategy across his Q2 2025 portfolio. With $183.3 million deployed across 50 positions, Hillman's latest 13F filing reveals a portfolio-wide reduction strategy that saw virtually all major holdings decreased by varying degrees. This systematic approach to position sizing, combined with a remarkably low 6.0% turnover rate and an average holding period of 13 quarters, demonstrates Hillman's commitment to long-term value investing while maintaining disciplined risk management.
The Big Picture: Balanced Portfolio Management
Portfolio Highlights (Q2 2025): - Market Value: $183.3M - Top 10 Holdings: 35.1% - Portfolio Size: 50 -1 - Average Holding Period: 13 quarters - Turnover: 6.0%
Hillman's portfolio showcases an exceptionally diversified approach compared to many concentrated value investors, with the top 10 holdings representing just 35.1% of total assets. This broad diversification across 50 positions reflects a risk-conscious strategy that seeks to capture value opportunities across multiple sectors while limiting single-position exposure. The reduction of one position from the previous quarter suggests selective pruning rather than wholesale portfolio reconstruction.
The remarkably low 6.0% turnover rate, combined with an average holding period of 13 quarters (over three years), underscores Hillman's patient, buy-and-hold philosophy. This stands in stark contrast to more activist or momentum-driven strategies, indicating that when Hillman identifies undervalued businesses with quality characteristics, he's willing to maintain those positions through market volatility. The Q2 2025 adjustments represent tactical position sizing rather than fundamental changes in investment thesis.
What's particularly noteworthy is that nearly all of Hillman's major holdings experienced reductions this quarter, with decreases ranging from modest 2% trims to more substantial 18% reductions. This uniform trimming pattern suggests a deliberate rebalancing effort, possibly driven by valuation concerns as certain positions appreciated, tax-loss harvesting opportunities, or capital reallocation to positions outside the top holdings that may have presented more compelling value opportunities.
Holdings Overview: Quality Names Across Sectors
The portfolio features a diverse array of established businesses spanning telecommunications, media, aerospace, consumer goods, technology, healthcare, and beverages. AT&T 3.7% leads the disclosed top holdings after a 10.58% reduction, maintaining its position as a core holding despite the trim. The telecommunications giant's consistent dividend yield likely aligns with Hillman's income-oriented value strategy.
Warner Bros. Discovery 3.7% received a 9.50% reduction but remains a significant position, reflecting Hillman's conviction in the media and entertainment sector despite ongoing industry challenges. The Boeing Company 3.6% saw a more substantial 15.88% reduction, suggesting some profit-taking or risk management as the aerospace manufacturer navigates its complex recovery trajectory.
In the consumer sector, The Estée Lauder Companies 3.6% was trimmed by 14.35%, while NIKE 3.5% experienced the smallest reduction at just 2.33%, indicating stronger conviction in the athletic apparel giant's long-term prospects. Both positions demonstrate Hillman's willingness to invest in premium consumer brands trading at what he presumably views as attractive valuations.
Technology exposure comes through Microsoft 3.6%, which saw an 18.89% reduction—the largest percentage decrease among disclosed holdings. This substantial trim may reflect profit-taking after Microsoft's strong performance or concerns about valuation expansion in mega-cap technology. ASML Holding 3.4% was reduced by 16.83%, suggesting similar concerns about semiconductor equipment valuations despite the company's dominant market position.
Healthcare representation appears through CVS Health 3.5%, trimmed by 7.42%, and GSK 3.2%, reduced by 7.60%. These positions reflect Hillman's interest in the healthcare sector's defensive characteristics and potential for value creation through operational improvements. Finally, Anheuser-Busch InBev 3.3% rounds out the disclosed holdings with a 16.14% reduction, maintaining exposure to the global beverage industry despite ongoing premiumization and market share challenges.
What the Portfolio Reveals About Hillman's Strategy
The uniform reduction pattern across virtually all major holdings suggests several strategic considerations driving Hillman's Q2 2025 positioning. Disciplined rebalancing appears to be the primary theme, with Hillman systematically reducing positions that may have appreciated beyond target allocation levels or reached fair value estimates. This mechanistic approach to portfolio management helps prevent emotional decision-making and maintains desired risk exposure across the portfolio.
Sector diversification remains a cornerstone of the strategy, with meaningful exposure across telecommunications, media, aerospace, consumer goods, technology, healthcare, and beverages. This broad sector allocation protects against industry-specific risks while allowing Hillman to capitalize on value opportunities wherever they emerge. The lack of concentration in any single sector demonstrates risk-conscious portfolio construction.
Quality bias is evident throughout the holdings, with each position representing an established business with recognizable brands, market leadership positions, or critical infrastructure roles. Hillman clearly favors companies with durable competitive advantages and proven business models over speculative growth stories, even when those quality names trade at what appear to be reasonable valuations.
Defensive positioning emerges through the heavy weighting toward established, dividend-paying businesses in relatively stable industries. The emphasis on telecommunications, healthcare, and consumer staples suggests preparation for potential market volatility, with these holdings likely providing both downside protection and income generation during turbulent periods.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| AT&T Inc. | $6,825.9K | 3.7% | Reduce 10.58% |
| Warner Bros. Discovery, Inc. | $6,825.0K | 3.7% | Reduce 9.50% |
| The Boeing Company | $6,616.3K | 3.6% | Reduce 15.88% |
| The Estée Lauder Companies Inc. | $6,593.2K | 3.6% | Reduce 14.35% |
| Microsoft Corporation | $6,513.6K | 3.6% | Reduce 18.89% |
| NIKE, Inc. | $6,453.5K | 3.5% | Reduce 2.33% |
| CVS Health Corporation | $6,414.9K | 3.5% | Reduce 7.42% |
| ASML Holding N.V. | $6,183.5K | 3.4% | Reduce 16.83% |
| Anheuser-Busch InBev SA/NV | $5,985.0K | 3.3% | Reduce 16.14% |
The concentration analysis reveals an exceptionally balanced approach to position sizing, with the top 10 disclosed holdings each representing between 3.3% and 3.7% of the total portfolio. This tight clustering indicates deliberate portfolio construction aimed at limiting single-position risk while maintaining meaningful exposure to each investment thesis. The relatively narrow range between the largest and tenth-largest positions suggests that Hillman views these holdings with similar conviction levels, rather than making outsized bets on his highest-conviction ideas.
The uniform reduction pattern across all disclosed top holdings is particularly striking, with decreases ranging from NIKE's modest 2.33% trim to Microsoft's substantial 18.89% reduction. This systematic trimming suggests that Hillman's strategy involves regular rebalancing to prevent any single position from becoming oversized, possibly triggered by appreciation in market values or predetermined allocation limits. The discipline to reduce positions across the board, regardless of recent performance or future outlook, demonstrates a rules-based approach to risk management that prevents concentration drift over time.
Investment Lessons from Hillman's Value Approach
Hillman's Q2 2025 portfolio positioning offers several valuable insights for individual investors seeking to implement disciplined value strategies:
Diversification protects capital when you can't predict outcomes. With 50 positions and top 10 holdings representing just 35.1% of assets, Hillman's approach acknowledges the inherent uncertainty in individual stock selection. This broad diversification allows for multiple paths to portfolio success while limiting the damage from any single mistake.
Systematic rebalancing prevents concentration drift. The uniform reduction pattern demonstrates the importance of mechanistic portfolio management rather than emotional decision-making. By trimming positions that have grown beyond target allocations, Hillman maintains desired risk exposure regardless of recent performance or market sentiment.
Patient capital compounds over time. An average holding period of 13 quarters and just 6.0% turnover indicate that Hillman gives his investment theses time to play out. This patient approach reduces transaction costs, defers tax liabilities, and allows fundamental value to emerge over multi-year periods rather than demanding immediate results.
Quality businesses deserve premium prices. The portfolio's emphasis on established brands, market leaders, and businesses with durable competitive advantages shows that value investing doesn't require bottom-fishing. Hillman is willing to pay reasonable prices for quality, recognizing that truly exceptional businesses rarely trade at deep discounts.
Risk management requires continuous attention. Even with a buy-and-hold philosophy, Hillman actively manages position sizes through regular trimming. This demonstrates that long-term investing doesn't mean passive investing—it requires ongoing portfolio monitoring and disciplined rebalancing to maintain appropriate risk levels.
Looking Ahead: Tactical Positioning for Uncertain Markets
The systematic trimming across Hillman's portfolio suggests a cautious outlook on near-term market valuations, with the fund manager likely raising cash or reallocating capital to positions outside the disclosed top holdings. The one-position reduction in total holdings indicates selective pruning rather than aggressive selling, suggesting that Hillman remains generally constructive on equity markets while exercising tactical caution.
The defensive tilt in sector allocation—with significant exposure to telecommunications, healthcare, and consumer staples—positions the portfolio to weather potential volatility while maintaining income generation through dividends. These characteristics suggest preparation for a range of market environments rather than an aggressive bet on either continued appreciation or imminent correction.
Looking forward, investors following Hillman's strategy should watch for potential new positions or significant additions in the Q3 2025 filing, as the capital raised through systematic trimming will likely be redeployed to opportunities that meet his value criteria. The low turnover rate suggests that any new positions will be carefully researched and sized for long-term holding rather than tactical trading opportunities.
The 45-day reporting lag inherent in 13F filings means that Hillman's actual current positioning may differ from the Q2 2025 snapshot, particularly if market conditions have shifted materially since June 30, 2025. However, the consistency of his approach over an average 13-quarter holding period suggests that major portfolio themes likely remain intact despite any tactical adjustments made in the subsequent months.
FAQ about Mark Hillman's Portfolio Strategy
Q: Why did Hillman reduce virtually all major holdings in Q2 2025?
The uniform reduction pattern across Hillman's top holdings most likely reflects systematic rebalancing rather than negative outlook on individual positions. With an average holding period of 13 quarters, Hillman employs a long-term strategy that requires periodic trimming to prevent concentration drift as positions appreciate. The reductions ranging from 2% to 19% suggest disciplined portfolio management to maintain target allocation levels across the diversified portfolio.
Q: How does Hillman's portfolio concentration compare to other value investors?
Hillman's approach is notably more diversified than many concentrated value investors, with 50 positions and top 10 holdings representing just 35.1% of assets. This contrasts sharply with investors like Bill Ackman (11 positions) or even Warren Buffett (whose top 5 holdings represent over 70% of Berkshire's portfolio). Hillman's broad diversification reflects a risk-conscious philosophy that seeks multiple paths to value creation rather than making outsized bets on a handful of high-conviction ideas.
Q: What sectors does Hillman favor in his value strategy?
The disclosed holdings span telecommunications (AT&T), media (Warner Bros. Discovery), aerospace (Boeing), consumer goods (Estée Lauder, NIKE, Anheuser-Busch), technology (Microsoft, ASML), and healthcare (CVS, GSK). This broad sector diversification suggests Hillman doesn't limit himself to specific industries but rather seeks quality businesses trading at attractive valuations across the market.
Q: How can individual investors track Hillman's portfolio changes?
Investors can monitor Hillman Capital's quarterly 13F filings through the SEC's EDGAR database or use specialized tracking platforms like ValueSense's superinvestor tracker. Remember that 13F filings have a 45-day reporting lag, meaning the disclosed positions reflect holdings as of the quarter-end date, not current positioning. ValueSense provides comprehensive portfolio analysis, including historical changes, concentration metrics, and performance tracking for Hillman and other notable investors.
Q: What can investors learn from Hillman's low turnover rate?
Hillman's 6.0% quarterly turnover rate and 13-quarter average holding period demonstrate the power of patient capital in value investing. This low turnover approach minimizes transaction costs, defers tax liabilities, and gives investment theses time to play out over multi-year periods. For individual investors, this serves as a reminder that successful investing often requires the discipline to hold quality businesses through short-term volatility rather than constantly trading in search of the next opportunity.
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