Pat Dorsey - Dorsey Asset Management Portfolio Q2'2025: Top Holdings & Recent Changes
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Pat Dorsey, founder of Dorsey Asset Management, continues to showcase his signature focus on economic moats and high-conviction investing. His Q2’2025 portfolio reflects a tightly concentrated $1.1 billion allocation across just 10 positions, with notable moves in industrials, technology, and digital platforms that highlight his evolving strategy.
Portfolio Overview: Moats, Focus, and Tactical Adjustments
Portfolio Highlights (Q2’2025): - Market Value: $1,115.2M - Top 10 Holdings: 100.0% - Portfolio Size: 10 -1 - Average Holding Period: 13 quarters - Turnover: 30.0%
Pat Dorsey’s portfolio remains a masterclass in concentrated investing, with every dollar deployed into just 10 stocks. This ultra-focused approach underscores Dorsey’s belief in deep research and conviction, favoring quality over quantity. The average holding period of 13 quarters signals a long-term mindset, while a 30% turnover this quarter suggests tactical repositioning in response to market dynamics.
The portfolio’s 100% allocation to its top 10 holdings is rare among institutional managers, reflecting Dorsey’s commitment to only the highest-conviction ideas. The reduction in portfolio size by one position further amplifies this focus, as Dorsey trims exposure to lower-conviction bets and doubles down on companies with durable competitive advantages.
Top Holdings Analysis: Moat Masters and Strategic Shifts
The portfolio is anchored by Danaher Corporation at 16.4%, where Dorsey made a substantial 34.09% addition, signaling increased confidence in the life sciences and diagnostics leader. Meta Platforms, Inc. 16.2% remains a core holding, though Dorsey slightly reduced the position by 0.79%, possibly to rebalance after strong performance.
A major move was the 19.55% addition to AerCap Holdings N.V. 14.3%, reflecting conviction in the aircraft leasing sector’s recovery. AutoZone, Inc. 11.9% saw a 5% reduction, suggesting profit-taking or a tactical shift. Alphabet Inc. 10.5% was increased by 3.64%, reinforcing Dorsey’s faith in digital advertising and cloud growth.
A standout move was the near doubling of ASML Holding N.V. 10.1% with a 98.37% addition, highlighting a bullish stance on semiconductor equipment and global chip demand. Booking Holdings Inc. 9.5% was also increased by 14.53%, indicating optimism in travel and digital platforms.
New capital was deployed into Enovis Corporation 7.2%, a fresh buy that expands exposure to medical technology. Meanwhile, Wix.com Ltd. 2.1% was sharply reduced by 54.04%, likely reflecting concerns over competitive pressures or valuation.
Rounding out the changes, Semrush Holdings, Inc. 1.9% saw a modest 1.23% addition, maintaining Dorsey’s interest in digital marketing analytics.
What the Portfolio Reveals About Current Strategy
- Quality Over Quantity: Dorsey’s portfolio is a showcase of high-quality businesses with sustainable competitive advantages (“moats”), favoring depth of research over diversification.
- Sector Focus: Significant allocations to technology (Meta, Alphabet, ASML, Wix, Semrush), healthcare (Danaher, Enovis), and travel (Booking) reflect a blend of secular growth and defensive characteristics.
- Geographic Reach: Holdings span U.S. and European markets, with ASML and AerCap providing global exposure.
- Active Management: The 30% turnover and bold position changes indicate a willingness to act decisively when market conditions or company fundamentals shift.
- Risk Management: The sharp reduction in Wix and trimming of AutoZone suggest ongoing risk assessment and profit-taking, while additions to Danaher and ASML show conviction in long-term growth drivers.
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Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Danaher Corporation | $183.1M | 16.4% | Add 34.09% |
| Meta Platforms, Inc. | $180.9M | 16.2% | Reduce 0.79% |
| AerCap Holdings N.V. | $159.3M | 14.3% | Add 19.55% |
| AutoZone, Inc. | $132.4M | 11.9% | Reduce 5.00% |
| Alphabet Inc. | $117.4M | 10.5% | Add 3.64% |
| ASML Holding N.V. | $112.2M | 10.1% | Add 98.37% |
| Booking Holdings Inc. | $105.9M | 9.5% | Add 14.53% |
| Enovis Corporation | $80.1M | 7.2% | Buy |
| Wix.com Ltd. | $23.3M | 2.1% | Reduce 54.04% |
| Semrush Holdings, Inc. | $20.7M | 1.9% | Add 1.23% |
The table above illustrates Dorsey’s extreme concentration, with the top five positions accounting for nearly 70% of total assets. This approach amplifies both potential returns and risks, relying on deep research and conviction. The outsized additions to Danaher and ASML signal a willingness to make bold moves when opportunity arises, while the sharp reduction in Wix demonstrates active risk management.
Investment Lessons from Pat Dorsey’s Moat-Focused Strategy
- Concentration Pays When You Know the Business: Dorsey’s willingness to allocate heavily to a handful of companies reflects deep conviction and research.
- Long-Term Holding Periods Matter: With an average holding period of 13 quarters, Dorsey demonstrates the value of patience and compounding.
- Quality Businesses Justify Premium Prices: The portfolio is filled with companies possessing durable competitive advantages, even if they trade at higher multiples.
- Active Position Sizing: Regular additions and reductions show that conviction is dynamic and requires ongoing reassessment.
- Moat Identification Is Key: Every holding is selected for its sustainable competitive edge, whether in technology, healthcare, or industrials.
Looking Ahead: What Comes Next?
With $1.1 billion deployed and a streamlined portfolio, Dorsey Asset Management is well-positioned to capitalize on secular growth trends in technology, healthcare, and travel. The recent additions suggest readiness to ride the next wave of innovation, while reductions in select positions free up capital for new opportunities. Investors should watch for further moves in high-growth sectors and potential new entries as market conditions evolve.
FAQ about Pat Dorsey’s Portfolio
Q: Why did Pat Dorsey add so aggressively to Danaher and ASML this quarter?
Dorsey’s substantial additions reflect increased conviction in both companies’ long-term growth prospects and competitive advantages, particularly in life sciences and semiconductor equipment.
Q: How does Dorsey manage risk with such a concentrated portfolio?
Risk is managed through deep fundamental research, ongoing monitoring, and tactical adjustments—such as the sharp reduction in Wix and trimming of AutoZone.
Q: What is the average holding period for Dorsey Asset Management?
The average holding period is 13 quarters, highlighting a long-term investment philosophy.
Q: Which sectors does Dorsey favor?
The portfolio is weighted toward technology, healthcare, and travel, with significant positions in Meta, Alphabet, Danaher, ASML, and Booking Holdings.
Q: How can investors track Pat Dorsey’s moves?
Follow quarterly 13F filings and use ValueSense’s Dorsey Asset Management portfolio tracker for real-time updates and analysis. Note that 13F filings have a 45-day reporting lag.
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