Adage Capital Partners Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

The psychological portrait of Adage Capital is one of disciplined, benchmark-aware alpha generation. Unlike "star-manager" hedge funds that might place massive, concentrated bets on a handful of high-conviction ideas, Adage manages a highly diversified portfolio consisting of 856 stocks . This breadth suggests a structural approach to investing that likely mirrors the S&P 500 to some extent—ensuring that the fund does not stray too far from its benchmark—while seeking to generate "alpha" (excess returns) through superior stock selection within each sector. With 856 holdings, the firm operates more like a "quant-fundamental hybrid," where deep fundamental research is applied across a vast universe of equities, and risk is mitigated through extreme diversification.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

II. Sector Allocation Analysis

With nearly 30% of the portfolio in Technology, Adage is clearly positioned to benefit from the ongoing digital transformation. However, a deeper look at the holdings reveals a nuanced approach. While the firm maintains massive positions in hardware leaders like NVDA (NVIDIA) and AVGO (Broadcom) , it also holds significant stakes in software and services. This suggests a transition in thinking: from the "shovels and picks" phase of AI (hardware) to the "application and monetization" phase (software). The firm’s willingness to maintain such a high tech weight despite high valuations indicates a belief that the earnings growth of these companies justifies their premiums.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

III. Top 10 Holdings Deep Dive

NVIDIA remains the undisputed crown jewel of Adage’s portfolio, with a market value of $4.15 billion . Despite a slight reduction in shares (-1.11%), it still commands a 6.28% weight. This is a "Conviction Holding" in its purest form. Adage has held NVDA since 2013, witnessing its transformation from a niche gaming chipmaker to the sovereign of the AI era.

The Top 10 holdings reveal an "Aggressive Core" strategy. Adage is heavily concentrated in the winners of the last decade, but it is not stagnant. The movement in LLY and the trimming of MSFT and NVDA suggest a fund that is constantly "optimizing for the next quarter." The portfolio is dominated by large-cap growth, but the inclusion of Broadcom and Eli Lilly adds a layer of "quality and innovation" that balances the pure "momentum" of the tech giants.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

IV. Major Buys/Additions

Where did the money come from? As we will see in Section V, Adage recouped significant capital from Utilities (DUK) , Consumer Staples (K, PG) , and Big Tech (MSFT) . This is a clear "Inventory Reallocation." The firm is moving away from "expensive safety" (Staples/Utilities) and "fully valued growth" (Big Tech) into "undervalued cyclicality" (Energy/Industrials) and "high-conviction healthcare."

These operations were likely executed with the expectation of a "re-acceleration" of the U.S. economy. By adding to railroads (NSC), aerospace (BA), and energy (COP), Adage is positioning itself for a "pro-growth" environment where the benefits of AI begin to trickle down into industrial productivity. The timing suggests they believe the "worst is over" for cyclical sectors and that the next phase of the bull market will be driven by "breadth" rather than just a few tech names.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

V. Major Sells and Exits

The reduction in PG (Procter & Gamble) and the exit from K (Kellanova) are warning signals for the Consumer Staples sector. Adage seems to believe that "pricing power" in the consumer space is peaking and that these stocks, which trade at high multiples for low growth, no longer offer an attractive risk-reward profile. Similarly, the exit from DUK suggests a belief that interest rates may stay "higher for longer," making utility yields less attractive.

Comprehensively, Adage is "cleaning up the tail." With 856 holdings, the firm must constantly prune positions that no longer meet its alpha requirements. The exits this quarter show a fund that is becoming more "selective." They are moving away from "generic safety" and "speculative biotech" toward "high-quality cyclicals" and "under-valued healthcare leaders." This is a sign of a fund that is preparing for a market where "stock picking" matters more than "beta."

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

VI. Investment Insights and Risk Warnings

The "Turnaround" Thesis: The aggressive addition to Boeing (BA) is a bold statement. It suggests that Adage believes the "operational bottom" is in and that the aerospace giant represents one of the few remaining "value" opportunities in a crowded market. 3. Healthcare as the New Alpha: The move into Merck (MRK) and Eli Lilly (LLY) shows a shift from "Tech-only" growth to "Healthcare-innovation" growth. Adage is betting that the "Obesity/GLP-1" and "Immunology" themes are just as powerful as the "AI" theme, but with more attractive entry points. 4. The "Cyclical Breadth" Play: By adding to Norfolk Southern (NSC) and ConocoPhillips (COP) , Adage is betting on a "broadening" of the bull market. They are moving away from the "defensive safety" of Utilities and Staples toward "offensive value" in Industrials and Energy.

This section shows only part of the complete report. View the app for the full analysis, position-level detail, and quarter-over-quarter tracking.

Sources and limitations

This report uses public U.S. Securities and Exchange Commission Form 13F disclosures and structured data maintained by 13F Hub. A 13F filing is a quarter-end snapshot of reportable long positions, is normally published with a delay, and does not disclose every short position, cash balance, bond, derivative, or non-U.S. asset.

Narrative content is prepared from the same-period SEC disclosure and 13F Hub structured data, then checked before publication. This material is for research and education, not personalized investment advice.