Tom Bancroft - Makaira Partners Portfolio Q2’2025: Top Holdings & Recent Changes
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Tom Bancroft continues to demonstrate exceptional value investing discipline. His Q2’2025 Makaira Partners portfolio showcases a highly concentrated approach, with $328.7 million deployed across just 13 positions. This quarter, Bancroft made bold moves in select holdings, reinforcing his reputation for conviction-driven investing and a willingness to size up when opportunity strikes.
Portfolio Overview: Focused Conviction, Minimal Diversification
Portfolio Highlights (Q2’2025): - Market Value: $328.7M - Top 10 Holdings: 97.5% - Portfolio Size: 13 +0 - Average Holding Period: 12 quarters - Turnover: 15.4%
Makaira Partners’ portfolio remains a masterclass in concentration, with nearly all capital allocated to the top ten positions. This disciplined structure reflects Bancroft’s preference for deep research and high conviction, rather than broad diversification. The average holding period of 12 quarters signals a long-term orientation, while turnover at 15.4% suggests selective, not frequent, trading.
Such a portfolio structure demands rigorous analysis and confidence in each business. Bancroft’s approach is reminiscent of classic value investors, focusing on a handful of companies where he believes the risk-reward profile is most attractive. The result is a portfolio that can deliver outsized returns—but also requires careful risk management.
Top Holdings Analysis: Strategic Additions and Steadfast Core
The portfolio is anchored by Charter Communications, Inc. at 24.9%, unchanged this quarter and representing Bancroft’s largest conviction bet. Notably, Bath & Body Works, Inc. saw a significant addition of 12.20%, now comprising 16.8% of the portfolio—a clear signal of increased confidence in the company’s prospects. Flutter Entertainment plc 9.3%, Domino's Pizza, Inc. 8.9%, and CDW Corporation 8.4% all remain unchanged, forming a stable core.
A standout move this quarter is the aggressive addition to Cactus, Inc., up 50.63% and now at 4.7% of the portfolio. This signals a tactical shift, possibly in response to valuation or operational developments. Limbach Holdings, Inc. enters the portfolio with a fresh “Buy,” representing 2.2%—a smaller but noteworthy new position.
Other key holdings include Bel Fuse Inc. 7.3%, CarMax, Inc. 5.6%, and LAMAR ADVERTISING CL A REIT 8.3%, each unchanged and reflecting ongoing conviction. The portfolio’s composition demonstrates a blend of consumer, technology, and industrial exposure, with a bias toward established, cash-generative businesses.
What the Portfolio Reveals About Current Strategy
- Concentration in High-Conviction Ideas: With 97.5% in the top ten, Bancroft is betting big on a select group of companies.
- Selective Aggression: The substantial increase in Cactus, Inc. and Bath & Body Works, Inc. highlights a willingness to size up when the risk/reward shifts favorably.
- Long-Term Orientation: An average holding period of 12 quarters suggests patience and a focus on compounding.
- Sector Diversity, Not Over-Diversification: While the portfolio spans consumer, tech, and industrials, it avoids excessive fragmentation.
- Risk Management via Deep Research: Concentration is balanced by deep due diligence and ongoing monitoring.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Charter Communications, Inc. | $81.8M | 24.9% | No change |
| Bath & Body Works, Inc. | $55.1M | 16.8% | Add 12.20% |
| Flutter Entertainment plc | $30.4M | 9.3% | No change |
| Domino's Pizza, Inc. | $29.3M | 8.9% | No change |
| CDW Corporation | $27.7M | 8.4% | No change |
| LAMAR ADVERTISING CL A REIT | $27.2M | 8.3% | No change |
| Bel Fuse Inc. | $24.0M | 7.3% | No change |
| CarMax, Inc. | $18.3M | 5.6% | No change |
| Cactus, Inc. | $15.6M | 4.7% | Add 50.63% |
| Limbach Holdings, Inc. | $7.3M | 2.2% | Buy |
The table above underscores the portfolio’s ultra-concentrated nature, with the top three positions alone accounting for over half of total assets. The outsized allocations to Charter Communications and Bath & Body Works reflect Bancroft’s conviction, while the aggressive addition to Cactus, Inc. stands out as a tactical move. Smaller positions like Limbach Holdings, Inc. suggest ongoing idea generation and willingness to initiate new stakes when warranted.
Investment Lessons from Tom Bancroft’s Approach
- Concentration Pays When You Know the Business: Bancroft’s willingness to allocate heavily to his best ideas is a hallmark of successful value investing.
- Patience is a Virtue: Long holding periods allow compounding and minimize transaction costs.
- Selective Aggression: When opportunity arises, don’t be afraid to size up—evident in the bold additions this quarter.
- Quality Over Quantity: A focused portfolio demands deep research and ongoing monitoring.
- Continuous Idea Generation: Even in a concentrated portfolio, new positions like Limbach Holdings, Inc. show the importance of staying alert for fresh opportunities.
Looking Ahead: What Comes Next?
With most capital committed to high-conviction ideas, Makaira Partners is positioned to benefit from outsized moves in its core holdings. The recent additions suggest Bancroft sees compelling value in select consumer and industrial names. Cash available for deployment appears limited, but the portfolio’s structure allows for tactical shifts should new opportunities arise. Investors should watch for further moves in top positions and monitor how new stakes develop.
Market conditions remain dynamic, and Bancroft’s disciplined approach—balancing patience with selective aggression—sets the stage for potential outperformance if his thesis plays out. The focus on established, cash-generative businesses provides a margin of safety, while ongoing research supports nimble adjustments.
FAQ about Tom Bancroft’s Makaira Partners Portfolio
Q: What were the most significant changes in Tom Bancroft’s portfolio this quarter?
A: The most notable moves were a 12.20% addition to Bath & Body Works, Inc., a 50.63% increase in Cactus, Inc., and a new “Buy” in Limbach Holdings, Inc..
Q: How concentrated is Makaira Partners’ portfolio?
A: Extremely concentrated—97.5% of assets are in the top ten positions, with the largest holding, Charter Communications, Inc., at 24.9%.
Q: What is Tom Bancroft’s investment strategy?
A: Bancroft focuses on deep research, high conviction, and long holding periods, preferring a handful of quality businesses over broad diversification.
Q: Which sectors does the portfolio favor?
A: The portfolio spans consumer, technology, and industrials, with significant allocations to communications, retail, and specialty manufacturing.
Q: How can investors track Tom Bancroft’s moves?
A: Follow quarterly 13F filings and use platforms like ValueSense for real-time portfolio tracking, stock analysis, and updates. Note that 13F filings have a 45-day reporting lag.
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