Ruane Cunniff - Ruane, Cunniff & Goldfarb L.p. Portfolio Q2'2025: Top Holdings & Recent Changes
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Ruane, Cunniff & Goldfarb, the storied value investment firm behind the legendary Sequoia Fund, continues to evolve its approach in a dynamic market environment. Their Q2’2025 portfolio reflects a blend of high-conviction core holdings and tactical adjustments, with $5.8 billion allocated across 43 positions. Notable moves this quarter include significant trims to several top holdings and a bold increase in select international and healthcare names, signaling a nuanced response to shifting market opportunities.
Portfolio Overview: High-Conviction Core, Tactical Adjustments
Portfolio Highlights (Q2’2025): - Market Value: $5,832.9M - Top 10 Holdings: 73.1% - Portfolio Size: 43 +5 - Average Holding Period: 14 quarters - Turnover: 16.3%
The Ruane, Cunniff & Goldfarb portfolio remains highly concentrated, with over 73% of assets in the top 10 holdings. This level of focus underscores the firm’s conviction in its best ideas, a hallmark of its long-term investment philosophy. Despite adding five new positions this quarter, the average holding period stands at an impressive 14 quarters, reflecting a disciplined, patient approach.
Turnover at 16.3% suggests a willingness to make tactical adjustments without sacrificing the core strategy. The firm’s recent moves—both trims and additions—demonstrate active risk management and a readiness to capitalize on evolving market conditions while maintaining a strong foundation in its highest-conviction names.
Top Holdings Analysis: Selective Reductions and Opportunistic Adds
The portfolio’s top positions reveal a careful balance between stability and adaptation. Charles Schwab remains the largest holding at 10.3%, though it was trimmed by 2.40%. Formula One Group (FWONK) 10.1% also saw a 2.51% reduction, reflecting profit-taking or risk management in these sizable bets. Intercontinental Exchange 8.7% and Capital One Financial 7.7% were both modestly reduced, indicating a cautious stance toward financials.
A standout move this quarter was the 2.75% addition to Taiwan Semiconductor Manufacturing Company Limited (TSM), now at 7.4% of the portfolio, signaling increased confidence in global semiconductor demand. Elevance Health Inc. (ELV) 7.3% was trimmed by 2.43%, while Alphabet Inc. (GOOGL) 7.1% saw a minor 0.27% reduction, suggesting nuanced adjustments rather than wholesale shifts in tech exposure.
The most significant reduction was in Meta Platforms, Inc. (META), cut by 22.20% to 5.0% of assets, likely reflecting valuation discipline or risk rebalancing. Credit Acceptance Corp 5.1% was also reduced by 9.19%. Notably, ICON Public Limited Company (ICLR) was increased by a substantial 36.18%, now representing 4.3% of the portfolio—a clear signal of rising conviction in the healthcare and contract research space.
Other core positions, such as Alphabet and Meta, remain central to the portfolio despite recent trims, reflecting a continued belief in the long-term value of dominant tech franchises. This blend of selective reductions and targeted additions highlights a strategy rooted in both discipline and adaptability.
What the Portfolio Reveals About Current Strategy
- Quality at the Core: The portfolio’s concentration in established financials, global tech leaders, and healthcare giants underscores a preference for durable, competitively advantaged businesses.
- Active Risk Management: Trims to top holdings and outsized reductions in names like Meta and Credit Acceptance suggest ongoing risk calibration in response to market volatility or valuation concerns.
- Opportunistic Expansion: The aggressive addition to ICON and increased exposure to TSMC indicate a willingness to capitalize on sector-specific tailwinds, particularly in healthcare and semiconductors.
- Long-Term Orientation: With an average holding period of 14 quarters, the firm’s approach remains fundamentally long-term, even as it adapts to near-term market dynamics.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| SCHWAB CHARLES CORP | $602.1M | 10.3% | Reduce 2.40% |
| Formula One Group (FWONK) | $586.3M | 10.1% | Reduce 2.51% |
| INTERCONTINENTAL EXCHANGE IN | $508.0M | 8.7% | Reduce 0.90% |
| CAPITAL ONE FINL CORP | $450.4M | 7.7% | Reduce 0.63% |
| Taiwan Semiconductor Manufacturing Company Limited (TSM) | $434.3M | 7.4% | Add 2.75% |
| Elevance Health Inc. (ELV) | $426.2M | 7.3% | Reduce 2.43% |
| Alphabet Inc. (GOOGL) | $417.0M | 7.1% | Reduce 0.27% |
| CREDIT ACCEP CORP MICH | $297.5M | 5.1% | Reduce 9.19% |
| Meta Platforms, Inc. (META) | $293.4M | 5.0% | Reduce 22.20% |
The table above highlights the portfolio’s pronounced concentration, with the top five positions alone accounting for over 44% of assets. This focus amplifies both the potential upside and the risk, making position sizing and ongoing monitoring critical. The pattern of modest reductions across most top holdings, paired with a few bold additions, reflects a strategy of incremental adjustment rather than wholesale rotation.
Investment Lessons from Ruane, Cunniff & Goldfarb
- Conviction Drives Results: Concentrating capital in best ideas, as seen in the top 10 holdings, can drive outperformance when paired with deep research.
- Patience Pays: An average holding period of 14 quarters demonstrates the value of letting investments compound over time.
- Disciplined Adaptation: Regular, measured adjustments—rather than dramatic shifts—help manage risk while staying true to core convictions.
- Sector Diversification: Exposure across financials, technology, and healthcare provides resilience against sector-specific shocks.
- Valuation Discipline: Willingness to trim or exit positions when valuations run ahead of fundamentals is key to long-term success.
Looking Ahead: What Comes Next?
With a portfolio that remains both concentrated and dynamic, Ruane, Cunniff & Goldfarb is well-positioned to capitalize on new opportunities as market conditions evolve. The addition of five new positions suggests a readiness to deploy capital into emerging ideas, while the firm’s core holdings provide a stable foundation. Investors should watch for further moves in healthcare and technology, as well as any significant shifts in financials, as signals of the firm’s evolving outlook.
FAQ about Ruane, Cunniff & Goldfarb Portfolio
Q: What were the most significant changes in the Q2 2025 portfolio?
The most notable moves were a 22.20% reduction in Meta Platforms, Inc. (META) and a 36.18% increase in ICON Public Limited Company (ICLR), reflecting both risk management and rising conviction in healthcare.
Q: How concentrated is the portfolio?
Over 73% of assets are in the top 10 holdings, demonstrating high conviction but also requiring careful risk management.
Q: What is the average holding period for positions?
The average holding period is 14 quarters, underscoring a long-term investment horizon.
Q: Which sectors are most represented?
Financials, technology, and healthcare dominate the portfolio, with significant positions in Charles Schwab, TSMC, Alphabet, and Elevance Health.
Q: How can I track Ruane, Cunniff & Goldfarb’s moves in real time?
You can follow their latest 13F filings and portfolio updates on ValueSense. Note that 13F filings are reported with a 45-day lag, so use ValueSense’s tools for timely analysis and alerts.
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