Matrix Asset Advisors Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The institutional investment landscape is often defined by the strategic maneuvers of seasoned asset managers who navigate the complexities of the global markets with a blend of disciplined value hunting and opportunistic growth positioning. David Katz, the Chief Investment Officer of Matrix Asset Advisors, represents a sophisticated archetype of the institutional investor—one whose portfolio adjustments in the first quarter of 2026 reveal a profound shift in market sentiment and strategic priorities. As of the portfolio snapshot on March 31, 2026, Matrix Asset Advisors managed a total reported portfolio value of approximately $1.09 billion. This scale places the firm in a unique "sweet spot" of the institutional world; it possesses enough capital to exert significant influence and gain access to high-level corporate insights, yet remains agile enough to rotate out of entire sectors or build substantial new positions without the massive market impact that often plagues multi-billion-dollar "mega-funds."

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

The most striking feature of this allocation is the massive concentration in the Financials sector, which accounts for 28.18% of the total portfolio. This is a bold, high-conviction stance that significantly overweights the sector compared to broader market benchmarks like the S&P 500. Such a heavy concentration in financials typically indicates an institutional belief in a stable or improving interest rate environment, where net interest margins for banks remain healthy and capital markets activity—such as mergers, acquisitions, and initial public offerings—is expected to accelerate. By placing nearly 30% of its capital in banks, asset managers, and insurance companies, Matrix Asset Advisors is essentially betting on the continued health of the global financial architecture and the resilience of the corporate credit cycle.

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

Microsoft Corporation (MSFT) stands as the undisputed crown jewel of the portfolio, occupying the number one spot with a 5.82% weight. This is a classic "conviction holding." During the first quarter of 2026, Matrix Asset Advisors aggressively increased its position in Microsoft by 20.07%, adding over 28,000 shares. This move is particularly noteworthy because, despite the significant addition of shares, the overall portfolio weight actually decreased slightly from 6.2% to 5.82%. This discrepancy suggests that while the institution was buying more shares, the rest of the portfolio was growing at a faster rate, or Microsoft's stock price experienced a period of consolidation. The motivation for this addition is likely rooted in Microsoft's dominant position in the "AI Arms Race." As the primary partner of OpenAI and the owner of the Azure cloud platform, Microsoft is uniquely positioned to monetize the transition to generative AI across both enterprise and consumer sectors. For David Katz, Microsoft represents the ultimate "Quality Growth" play—a company with an impenetrable moat, massive recurring revenue, and a leadership position in the most important technological shift of the decade.

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

The addition to Microsoft Corporation is the largest single capital deployment of the quarter, with an estimated $10.6 million in new capital committed. As discussed in the Top 10 analysis, this is a "conviction buy." In the institutional world, adding 20% to your largest position is a major statement. It suggests that David Katz believes Microsoft’s valuation, even at all-time highs, does not yet fully reflect the earnings power of its AI integration. This is not a "value" play in the traditional sense of buying low P/E stocks; it is a "growth at a reasonable price" (GARP) play where the manager is willing to pay a premium for the certainty of Microsoft’s cash flows.

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 most dramatic move of the quarter was the complete exit from L3Harris Technologies and General Dynamics . Together, these two liquidations recouped nearly $22 million in cash. In the "Exit Motivation Four-Quadrant Analysis," these fall into the "High Amount + Moderate Weight" category, signifying a Strategic Retreat . For an institution to walk away from two major defense contractors simultaneously suggests a fundamental shift in their outlook for the aerospace and defense sector. Perhaps the "geopolitical premium" that had driven these stocks higher in previous years has finally peaked, or the manager sees better risk-adjusted returns in other sectors. This is a "mission accomplished" move—taking profits after a period of strong performance and moving on before the sector's growth slows down.

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 logic chain is clear: 1. Sold What : Liquidated heavy positions in Defense (LHX, GD) and Legacy Tech (CSCO). 2. Why Sell : Recognizing that the "geopolitical trade" and "legacy infrastructure trade" have reached maturity and offer lower future returns. 3. Bought What : Aggressively added to AI leaders (MSFT, QCOM, ACN) and iconic consumer brands (NKE, PG, PEP). 4. Why Buy : Betting on the secular growth of artificial intelligence and the "margin of safety" provided by dominant consumer franchises in a potentially volatile economic environment. 5. Overall Result : A portfolio that is more concentrated in "winners," more exposed to high-margin technology, and better protected by a foundation of high-quality consumer staples.

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.