Brave Warrior Advisors

#### I. Institutional Overview The Q4 2025 13F filing for Glenn Greenberg’s Brave Warrior Advisors reveals a sophisticated, high-conviction investment strategy that remains true to the firm's namesake. With a reported portfolio value of approximately **$4.27 billion** and a concentrated pool of only **33 holdings**, Greenberg continues to demonstrate the "Brave Warrior" ethos: making large, concentrated bets on businesses where the firm possesses deep fundamental conviction. This institutional profile is not one of a passive index-hugger but of a disciplined value seeker who is willing to endure volatility in exchange for long-term outperformance. Analyzing the scale of the institution, the reported value of $4,268,783,946 suggests a stable to slightly expanding capital base. However, the true story lies in the internal dynamics of the portfolio. With only 33 stocks, the average position size is roughly $129 million, but the reality is even more skewed. The top 10 holdings represent a staggering **78.24%** of the total portfolio. This level of concentration is characteristic of "smart money" that prioritizes "depth of knowledge" over "breadth of exposure." When an institution holds nearly 80% of its assets in just ten names, every buy and sell decision carries immense weight, signaling a high degree of confidence in their internal research and valuation models. Greenberg’s investment style, while not explicitly labeled in the metadata, clearly falls into the category of "Concentrated Value." The firm tends to favor companies with strong cash flows, dominant market positions, and what Warren Buffett would call "economic moats," but with a specific focus on financial services and consumer-facing cyclicals. The psychological portrait of Brave Warrior Advisors this quarter is one of **strategic reallocation**. We see a firm that is not afraid to prune long-term winners or exit positions that no longer fit the macro-outlook, while simultaneously doubling down on themes related to credit, housing, and automotive retail. The stability of the institution is also reflected in the "holding age" of its core positions. Many of the top holdings, such as Primerica (PRI) and OneMain Holdings (OMF), have been in the portfolio for years—over a decade in the case of PRI. This suggests that Greenberg is a "partner-style" investor, holding through cycles as long as the fundamental thesis remains intact. However, the Q4 2025 report shows a notable "sharpening of the sword." By reducing exposure to managed healthcare (Elevance Health) and exiting energy infrastructure (Kinetik Holdings), Greenberg is signaling a shift toward more cyclical, interest-rate-sensitive, and consumer-credit-oriented assets. In summary, Brave Warrior Advisors enters 2026 with a portfolio that is lean, aggressive, and highly focused. The institution is currently characterized by a "bullish but selective" posture. They are moving away from defensive growth and into "real economy" sectors like financials and industrials, suggesting a belief in the resilience of the American consumer and a stabilization of the interest rate environment. The following analysis will dissect how these macro views are manifested in specific sector rotations and individual stock selections. #### II. Sector Allocation Analysis The sector allocation of Brave Warrior Advisors in Q4 2025 provides a clear window into Glenn Greenberg’s macroeconomic worldview. The portfolio is heavily tilted toward **Financials**, which account for nearly **40% (39.34%)** of the total reported value. This is not merely a preference but a structural bet on the plumbing of the American economy—credit, insurance, and investment services. | Sector | Weight (%) | Trend/Change | | :--- | :--- | :--- | | Financials | 39.34 | Increasing Focus | | Consumer Discretionary | 15.70 | Significant Expansion | | Technology | 11.14 | Stable/Core | | Industrials | 10.90 | Strategic Core | | Healthcare | 10.32 | Major Reduction | | Energy | 6.36 | Contracting | | Real Estate | 6.02 | Aggressive Entry | | Communication Services | 0.20 | Negligible | | Others | 0.02 | Residual | **2.1 Concentration and Macro Judgment** The top three sectors—Financials, Consumer Discretionary, and Technology—account for **66.18%** of the portfolio. If we include Industrials, the top four sectors cover over **77%**. This high concentration indicates that Greenberg is making a "macro-track" selection. By overweighting Financials and Consumer Discretionary, the institution is effectively betting on a "soft landing" or a period of sustained consumer spending. Financials, in particular, benefit from a "higher-for-longer" or at least a "normalized" interest rate environment, which allows for better net interest margins (NIM) for lenders like OneMain (OMF) and Capital One (COF). **2.2 The Pivot from Defensive to Cyclical** The most striking move this quarter is the divergence between Healthcare and Consumer Discretionary/Real Estate. Healthcare, typically a defensive sector, saw its weight pressured by a massive 31.74% reduction in Elevance Health (ELV). Meanwhile, Consumer Discretionary (15.70%) and Real Estate (6.02%) are being bolstered. This suggests a transition from a "protectionist" stance to an "offensive" one. Real Estate, specifically through the addition of Millrose Properties (MRP), Lennar (LEN), and Builders FirstSource (BLDR), indicates a strong conviction in the housing market's recovery or its structural undersupply. **2.3 Financials: The Portfolio’s Engine** The 39.34% allocation to Financials is diversified across different niches: * **Subprime/Consumer Credit**: OneMain Holdings (OMF) and SLM Corp (SLM). * **Traditional Banking/Credit Cards**: Capital One (COF) and JPMorgan (JPM). * **Insurance/Services**: Primerica (PRI) and Fidelity National Financial (FNF). This spread suggests that Greenberg is not just betting on "banks," but on the broader "velocity of money" and the health of the consumer balance sheet. The increase in SLM (Sallie Mae) specifically points to a bullish view on student lending and specialized credit markets. **2.4 Insights into Industry Trends: AI and Beyond** While Technology remains a significant part of the portfolio (11.14%), it is dominated by TD SYNNEX (SNX), a business process and distribution company, rather than high-flying software-as-a-service (SaaS) firms. This reflects a "value" approach to tech—investing in the infrastructure and distribution layers that facilitate tech adoption rather than chasing expensive multiples. The tiny new positions in Applied Materials (AMAT) and S&P Global (SPGI) might be "tracking positions," suggesting the firm is beginning to look at semiconductor equipment and financial data providers as potential future themes, perhaps as a way to play the "AI hardware" and "data-as-a-service" trends without overpaying. **2.5 Macroeconomic Inference** Based on this allocation, we can infer that Brave Warrior Advisors is positioned for an economy that is moving past the fear of an immediate recession. The reduction in Energy (6.36%) and the exit from Kinetik Holdings (KNTK) suggest a move away from inflation-hedge assets, while the buildup in housing-related stocks (Real Estate and Industrials) suggests a belief that the "interest rate shock" to the housing market has been absorbed. The institution appears to be betting on a "normalization" cycle where credit remains available and the consumer remains the primary driver of GDP growth. #### III. Top 10 Holdings Deep Dive The Top 10 holdings of Brave Warrior Advisors represent the "ballast" of the portfolio, accounting for the vast majority of its market value and risk exposure. **Table 3.1: Top 10 Holdings Detail** | Rank | Ticker | Company | Market Value | Weight (%) | Qtr Change | Weight Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | OMF | OneMain Holdings, Inc. | $522.79 ---