Turtle Creek Asset Management Portfolio in 2026: Top Holdings & Recent Changes
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Turtle Creek Asset Management continues to demonstrate disciplined value investing through systematic portfolio rebalancing. Their Q4 2025 portfolio reveals a carefully managed $2.3 billion in assets deployed across 38 positions, with strategic reductions across most major holdings and selective additions in two key positions. This quarter's moves signal a thoughtful reassessment of valuations and risk management, reflecting the firm's commitment to maintaining optimal position sizing while preserving long-term conviction in core holdings.
Portfolio Overview: Disciplined Rebalancing in Action
Portfolio Highlights (Q4 2025): - Market Value: $2,272.3M - Top 10 Holdings: 58.7% - Portfolio Size: 38 positions (-3 from prior quarter) - Average Holding Period: 12 quarters (3 years) - Turnover: 13.2%
Turtle Creek's portfolio strategy reflects a measured approach to value investing characterized by low turnover and extended holding periods. The 13.2% turnover rate indicates disciplined rebalancing rather than reactive trading, while the 12-quarter average holding period demonstrates patience in allowing thesis to play out. The reduction of three positions from 38 to 35 suggests the firm is consolidating its portfolio, likely exiting positions that no longer meet investment criteria or have reached valuation targets.
The concentration of 58.7% in the top 10 holdings provides meaningful exposure to the firm's highest-conviction ideas while maintaining diversification across 38 total positions. This balance between concentration and breadth allows Turtle Creek to capture significant upside from its best ideas while managing idiosyncratic risk through a broader portfolio base. The strategic nature of this quarter's reductions—affecting nearly every top holding—suggests management is taking profits on appreciated positions and redeploying capital more efficiently.
Top Holdings Analysis: Selective Additions Amid Broad Reductions
Turtle Creek's portfolio is anchored by Bread Financial Holdings at 8.3%, though the firm reduced this position by 22.30%, signaling potential valuation concerns or profit-taking on a strong performer. The Middleby Corporation 7.3% saw a 23.59% reduction, the second-largest cut in the portfolio, suggesting the firm is trimming exposure to what may have become an outsized position. ATS Corporation 6.8% experienced a 19.09% reduction, maintaining its third-largest position while the firm rebalances.
TFI International Inc. 6.3% received a 24.47% reduction, the largest percentage cut in the portfolio, indicating significant rebalancing of this transportation and logistics holding. Ingersoll Rand Inc. 5.3% was reduced by 14.92%, a more modest trim suggesting the firm maintains conviction in this industrial equipment manufacturer. Colliers International Group Inc. 5.3% saw a minimal 0.35% reduction, essentially unchanged and reflecting stable conviction in the real estate services firm.
Floor & Decor Holdings 5.2% was reduced by 9.71%, a relatively modest trim compared to other positions. WillScot Holdings Corporation 5.1% experienced a 29.17% reduction, the most aggressive cut in the portfolio, suggesting the firm may view this modular building solutions provider as fully valued. In contrast, Kinsale Capital Group 4.8% received a 23.35% addition, one of only two positions increased this quarter, indicating fresh conviction in this specialty insurance provider. Euronet Worldwide 4.3% was added to by 33.44%, the largest addition in the portfolio, suggesting the firm sees compelling value in this payment solutions company.
What the Portfolio Reveals About Current Strategy
Turtle Creek's Q4 2025 moves reveal several strategic themes:
Profit-Taking on Winners: The broad-based reductions across eight of the top 10 holdings suggest the firm has benefited from market appreciation and is systematically taking profits. This disciplined approach prevents any single position from becoming too large and locks in gains before potential reversals.
Selective Conviction in Undervalued Opportunities: The two additions—Kinsale Capital and Euronet Worldwide—indicate the firm has identified compelling value opportunities. These selective additions amid broad reductions suggest management believes these companies offer superior risk-reward profiles at current prices.
Industrial and Financial Services Focus: The portfolio's concentration in industrial equipment (Ingersoll Rand, ATS), transportation (TFI International), financial services (Bread Financial, Colliers), and specialty insurance (Kinsale Capital) reflects a sector bias toward businesses with tangible assets, predictable cash flows, and value characteristics.
Risk Management Through Diversification: The reduction of three positions while maintaining 38 total holdings demonstrates a commitment to managing concentration risk. The firm is not abandoning positions but rather right-sizing them to maintain optimal portfolio construction.
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Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Bread Financial Holdings (BFH) | $188.9M | 8.3% | Reduce 22.30% |
| The Middleby Corporation (MIDD) | $166.1M | 7.3% | Reduce 23.59% |
| ATS Corporation (ATS) | $155.4M | 6.8% | Reduce 19.09% |
| TFI International Inc. (TFII) | $142.1M | 6.3% | Reduce 24.47% |
| Ingersoll Rand Inc. (IR) | $121.2M | 5.3% | Reduce 14.92% |
| Colliers International Group Inc. (CIGI) | $119.6M | 5.3% | Reduce 0.35% |
| Floor & Decor Holdings, Inc. (FND) | $118.5M | 5.2% | Reduce 9.71% |
| WillScot Holdings Corporation (WSC) | $116.4M | 5.1% | Reduce 29.17% |
| Kinsale Capital Group, Inc. (KNSL) | $109.0M | 4.8% | Add 23.35% |
| Euronet Worldwide, Inc. (EEFT) | $97.0M | 4.3% | Add 33.44% |
The top 10 holdings represent 58.7% of the portfolio, a healthy concentration level that balances conviction with diversification. The concentration is notably balanced, with no single position exceeding 8.3% and the top two holdings (Bread Financial and Middleby) comprising just 15.6% combined. This structure allows Turtle Creek to benefit meaningfully from its best ideas while limiting downside risk from any individual position.
The reductions across the top eight holdings are systematic and proportional, suggesting a portfolio-wide rebalancing rather than a loss of conviction in specific businesses. The fact that even the smallest reduction (Colliers at 0.35%) maintains the position indicates the firm is not exiting these businesses but rather optimizing position sizes. The two additions—particularly the 33.44% increase in Euronet Worldwide—suggest management has identified fresh opportunities that warrant increased capital allocation.
Investment Lessons from Turtle Creek's Approach
Discipline Beats Emotion: Turtle Creek's systematic rebalancing demonstrates that successful value investing requires disciplined adherence to position-sizing rules, even when positions are performing well. The broad-based reductions prevent winners from becoming portfolio risks.
Long-Term Holding Periods Create Compounding: The 12-quarter average holding period reflects patience in allowing investment theses to develop. This extended timeframe permits fundamental improvements in business quality and valuation to compound, rather than chasing short-term price movements.
Low Turnover Preserves Returns: The 13.2% turnover rate is remarkably low, indicating the firm makes deliberate, infrequent changes. This approach minimizes transaction costs and tax drag while allowing conviction positions to compound over time.
Selective Additions Signal Opportunity: When a disciplined manager adds to positions amid broad reductions, it signals genuine conviction. Turtle Creek's 23.35% addition to Kinsale Capital and 33.44% addition to Euronet Worldwide suggest these companies offer compelling value at current prices.
Diversification Across Quality Businesses: The portfolio's spread across 38 positions in industrial, financial, and specialty services sectors reflects a philosophy of owning multiple high-quality businesses rather than concentrating in a few mega-positions. This approach captures the benefits of value investing while managing idiosyncratic risk.
Looking Ahead: What Comes Next?
Turtle Creek's Q4 2025 positioning sets up well for 2026 in several respects. The firm has reduced leverage in positions that may have appreciated significantly, freeing up capital for deployment into new opportunities or further additions to conviction positions like Euronet Worldwide. The selective additions suggest management sees attractive valuations in payment solutions and specialty insurance, sectors that could benefit from economic normalization and rising interest rates.
The reduction of three positions suggests the firm may have exited businesses that no longer meet investment criteria or have reached valuation targets. This disciplined pruning maintains portfolio quality and ensures capital is deployed only in the highest-conviction ideas. With 38 positions and a 12-quarter holding period, Turtle Creek has built a portfolio designed to compound over multiple market cycles, with the flexibility to add to opportunities when valuations become compelling.
FAQ About Turtle Creek Asset Management Portfolio
Q: Why did Turtle Creek reduce nearly all of its top 10 holdings in Q4 2025?
A: The broad-based reductions reflect systematic portfolio rebalancing and profit-taking on appreciated positions. This disciplined approach prevents any single position from becoming too large relative to the portfolio and locks in gains before potential reversals. The reductions are proportional across holdings, suggesting a portfolio-wide optimization rather than loss of conviction in specific businesses.
Q: What do the additions to Kinsale Capital and Euronet Worldwide signal?
A: These selective additions amid broad reductions indicate Turtle Creek has identified compelling value opportunities in specialty insurance and payment solutions. The 33.44% addition to Euronet Worldwide is particularly significant, suggesting management believes this company offers superior risk-reward at current prices. These additions demonstrate the firm's ability to identify and act on attractive opportunities.
Q: How does Turtle Creek's 12-quarter holding period compare to other value investors?
A: The 12-quarter (3-year) average holding period reflects a patient, long-term approach to value investing. This extended timeframe allows fundamental improvements in business quality and valuation to compound, rather than chasing short-term price movements. It also suggests Turtle Creek is willing to hold through market volatility if the investment thesis remains intact.
Q: What sectors does Turtle Creek focus on?
A: The portfolio demonstrates a clear bias toward industrial equipment (Ingersoll Rand, ATS), transportation and logistics (TFI International), financial services (Bread Financial, Colliers), specialty insurance (Kinsale Capital), and consumer discretionary (Middleby, Floor & Decor). These sectors typically feature tangible assets, predictable cash flows, and value characteristics that align with Turtle Creek's investment philosophy.
Q: How can I track Turtle Creek's portfolio changes and follow their 13F filings?
A: You can monitor Turtle Creek's quarterly 13F updates and portfolio changes using ValueSense's dedicated Turtle Creek tracker. The platform provides real-time analysis and historical visualizations of all portfolio moves. Remember that 13F filings carry a 45-day reporting lag, so reported positions may differ from the firm's real-time book, but they remain a valuable window into the strategy's structure and evolution.
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