Torray Funds Portfolio Q3'2025: Top Holdings & Recent Changes
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Torray Funds continues to showcase disciplined value investing through active portfolio management. Their Q3 2025 $737.0M portfolio features notable adjustments, including significant reductions in high-flying tech names alongside opportunistic adds in energy, healthcare, and financial sectors, signaling a rotation toward resilient, cash-generating businesses amid market volatility.
Portfolio Snapshot: Diversified Discipline with Long-Term Conviction
Portfolio Highlights (Q3’2025): - Market Value: $737.0M - Top 10 Holdings: 33.1% - Portfolio Size: 99 +0 - Average Holding Period: 21 quarters - Turnover: 20.2%
The Torray Funds portfolio maintains a broad diversification across 99 positions, a hallmark of their risk-managed approach that avoids over-reliance on any single idea. With the top 10 holdings representing just 33.1% of the total, Torray demonstrates a balanced strategy that prioritizes stability over concentration, even as they make targeted changes. The impressive average holding period of 21 quarters underscores their patient, long-term orientation, holding winners through cycles rather than chasing short-term momentum.
This quarter's 20.2% turnover reflects deliberate activity without excessive trading, focusing on trimming overvalued positions while building into undervalued opportunities. Access the full details on their Torray Funds portfolio page to track historical trends and performance. Overall, the portfolio's structure suggests confidence in quality compounders across sectors, with adjustments hinting at caution on tech valuations and optimism for cyclical recoveries.
Top Positions Breakdown: Tech Pullbacks Meet Healthcare and Energy Momentum
Torray's latest 13F reveals dynamic shifts, starting with a substantial Broadcom Inc. (AVGO) reduction of 36.57% to 4.2% of the portfolio at $31.1M, likely locking in gains after the chipmaker's AI-driven surge. In contrast, they added 3.01% to Phillips 66 (PSX) (3.9%, $28.4M), betting on energy refining stability amid global demand. Royalty Pharma plc (RPRX) saw a 2.05% increase to 3.4% $24.8M, highlighting healthcare royalty streams as a defensive growth play.
A fresh position emerged with the "Buy" of Hewlett Packard Ent Ser C Conv at 3.3% $24.4M, diversifying into convertible tech debt. Additions continued with AbbVie Inc. (ABBV) up 6.93% to 3.2% $23.5M and The Home Depot, Inc. (HD) up 3.22% to 3.2% $23.5M, reinforcing consumer and pharma resilience. Blackstone Inc. (BX) gained 2.55% to 3.2% $23.4M, while CNA Financial Corporation (CNA) surged 18.84% to 3.2% $23.4M, signaling strong conviction in insurance value.
Further tweaks included a 13.26% trim in Texas Instruments Incorporated (TXN) (2.8%, $21.0M) and a 3.82% add to Amgen Inc. (AMGN) (2.8%, $20.5M), rounding out a mix of semiconductor caution and biotech enthusiasm. These moves, visible in the full Torray portfolio, blend top holdings with strategic pivots for balanced exposure.
Strategic Signals: Quality Cyclicals in a High-Valuation World
Torray's Q3 adjustments reveal a pragmatic strategy favoring quality businesses with strong free cash flow over speculative growth. Key themes include:
- Sector Rotation: Notable trims in semiconductors like AVGO and TXN suggest wariness of tech bubble risks, countered by adds in energy (PSX) and healthcare (ABBV, RPRX, AMGN).
- Value Discipline: Aggressive increases in CNA 18.84% and new buys like Hewlett Packard convertibles point to hunting undervalued assets with upside.
- Risk Management: A sprawling 99-position portfolio with low top-10 concentration 33.1% mitigates volatility, paired with a 21-quarter hold period for proven winners.
- Dividend and Income Focus: Holdings like HD and BX emphasize reliable payers in consumer and alternatives spaces.
This approach prioritizes moats and margins of safety, adapting to elevated valuations without abandoning core convictions.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Broadcom Inc. (AVGO) | $31.1M | 4.2% | Reduce 36.57% |
| Phillips 66 (PSX) | $28.4M | 3.9% | Add 3.01% |
| Royalty Pharma plc (RPRX) | $24.8M | 3.4% | Add 2.05% |
| Hewlett Packard Ent Ser C Conv | $24.4M | 3.3% | Buy |
| AbbVie Inc. (ABBV) | $23.5M | 3.2% | Add 6.93% |
| The Home Depot, Inc. (HD) | $23.5M | 3.2% | Add 3.22% |
| Blackstone Inc. (BX) | $23.4M | 3.2% | Add 2.55% |
| CNA Financial Corporation (CNA) | $23.4M | 3.2% | Add 18.84% |
| Texas Instruments Incorporated (TXN) | $21.0M | 2.8% | Reduce 13.26% |
Torray's top 10, totaling 33.1% of the $737.0M portfolio, exemplifies measured diversification—no single position exceeds 4.2%, reducing blow-up risk while allowing conviction bets like the 18.84% boost in CNA. The mix spans tech pullbacks, energy adds, and healthcare stability, reflecting tactical shifts without disrupting the broader 99-stock base.
This low concentration enables flexibility, as seen in trims to frothy names like AVGO funding new opportunities. It balances growth potential with downside protection, aligning with their 20.2% turnover for ongoing optimization.
Investment Lessons from Torray Funds' Approach
Torray Funds' Q3 13F offers timeless principles for patient investors:
- Trim Winners Judiciously: The 36.57% AVGO cut shows discipline in taking profits on outperformers to reallocate capital.
- Long Holding Periods Pay Off: 21 quarters average tenure emphasizes conviction in quality, avoiding trading noise.
- Diversify Thoughtfully: 99 positions with 33.1% top-10 concentration manage risk while pursuing alpha.
- Hunt Value in Cyclicals: Bold adds to PSX, CNA, and pharma signal buying dips in resilient sectors.
- Active Management Matters: 20.2% turnover keeps the portfolio fresh without overtrading.
These lessons highlight Torray's blend of value hunting and risk control.
Looking Ahead: What Comes Next?
Torray's positioning sets up well for varied scenarios, with trims from tech providing dry powder for further deployments into undervalued cyclicals. The lack of portfolio size change (99 +0) suggests stability, but 20.2% turnover indicates readiness for opportunities in energy transitions or healthcare innovations. In a potentially volatile 2026, their emphasis on dividend payers like ABBV and HD offers income buffers.
Watch for continued rotation away from mega-cap tech toward mid-cap value, especially if rates stabilize. The Torray portfolio is primed for compounding through quality holdings, with healthcare and alternatives as potential growth drivers.
FAQ about Torray Funds Portfolio
Q: What are the most significant changes in Torray Funds' Q3 2025 13F filing?
A: Key moves include a 36.57% reduction in AVGO, a new "Buy" in Hewlett Packard Ent Ser C Conv, and major adds like 18.84% to CNA and 6.93% to ABBV, reflecting a shift from tech to value sectors.
Q: Why does Torray Funds maintain such a large number of positions with low top-10 concentration?
A: Their 99-position portfolio and 33.1% top-10 weighting prioritize diversification and risk control, allowing long-term holds (21 quarters average) while making tactical adjustments via 20.2% turnover.
Q: What sectors does Torray Funds favor based on recent top holdings?
A: Energy (PSX), healthcare (RPRX, ABBV), consumer (HD), and financials (BX, CNA) dominate, with tech trims signaling caution.
Q: How can I track and follow Torray Funds' portfolio updates?
A: Monitor quarterly 13F filings on the SEC site or use ValueSense's superinvestor tracker at https://valuesense.io/superinvestors/torray-investment for real-time analysis, historical changes, and visualizations—note the 45-day reporting lag means positions may evolve post-filing.
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