ShawSpring Partners Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The most striking characteristic of ShawSpring Partners during this reporting period is its extreme concentration. With only 12 distinct holdings in its entire portfolio, the institution operates with a "quality over quantity" mantra that is rare in an era of algorithmic trading and index-hugging. This level of concentration suggests that Dennis Hong and his team are not merely participants in the market; they are high-conviction practitioners who only deploy capital when they believe they have a significant informational or analytical edge. A portfolio of 12 stocks means that every single position must pull its weight, and any significant adjustment to a holding reflects a profound shift in the institution's underlying thesis.

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 concentration within the top two sectors is staggering. Technology and Consumer Discretionary together account for 86.03% of the total portfolio. If we include Communication Services, the top three sectors represent 92.48% of the institution's assets. This level of focus indicates a "thematic purity" in ShawSpring’s strategy. The institution is essentially betting on the continued convergence of software, security, and global commerce. By allocating over half of its capital to Technology, ShawSpring is signaling that it views software and cloud infrastructure not as cyclical trades, but as the fundamental utility of the modern age.

One of the most notable shifts this quarter is the entry into the Utilities sector, albeit at a modest 2.42% weight through Constellation Energy Corporation. While small, this move is symbolically significant for a fund that usually avoids traditional "old economy" sectors. This likely points to a sophisticated understanding of the "AI Power Thesis." As artificial intelligence and massive data centers require unprecedented amounts of reliable, carbon-free energy, companies like Constellation Energy are becoming the "pick and shovel" plays for the next phase of the technology cycle. This indicates that ShawSpring is looking beyond the software layer to the physical constraints of the digital economy.

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

Despite a significant reduction of 36.04% in the number of shares held, Okta remains the undisputed largest holding in the ShawSpring portfolio, commanding a 16.62% weight. This position is the definition of a "conviction holding." Okta’s role as a leader in identity and access management (IAM) makes it a fundamental piece of the modern enterprise security stack. The reduction this quarter should not be interpreted as a loss of faith; rather, it appears to be a tactical rebalancing. Given that the portfolio weight actually increased from 14.38% to 16.62% despite the share reduction, it is clear that Okta’s stock price performance significantly outpaced the rest of the portfolio, forcing the manager to trim the position to manage concentration risk. The underlying thesis remains intact: as cyber threats become more sophisticated, the "identity" layer becomes the new perimeter, and Okta is the primary beneficiary of this shift.

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 motivation here is likely a "growth acceleration bet." As enterprises move away from legacy hardware firewalls toward software-defined security, Zscaler is capturing the lion's share of that transition. By pairing Zscaler with Okta (the top holding), ShawSpring has effectively built a "Cybersecurity Power Pair" that covers both identity (Okta) and data transit (Zscaler). This is a sophisticated play on the "unhackable enterprise" theme, which remains one of the few areas of IT spending that is truly non-discretionary.

The entry into GDS Holdings Limited ($8.9M) and Constellation Energy Corporation ($6.5M) is particularly insightful. GDS is a leading developer and operator of high-performance data centers, while Constellation Energy is the largest producer of carbon-free energy in the U.S. Together, these two new positions represent a "physical layer" bet on AI. You cannot have AI without data centers, and you cannot have data centers without massive amounts of power. This shows ShawSpring moving "down the stack" to capture value at the foundational level of the technology 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.

V. Major Sells and Exits

The exit of Blend Labs, realizing $27.4 million, represents the removal of a long-term holding that dated back to 2022. Blend Labs, which focuses on cloud banking software, has struggled with the downturn in the mortgage and lending markets. This exit qualifies as an "Error-Correcting Exit" or a "Stop-Loss" move. After holding the stock through a difficult period, the institution has decided to reallocate that capital into higher-velocity opportunities like Zscaler or Amazon. It reflects a disciplined approach to "opportunity cost"—recognizing that capital tied up in a struggling turnaround is capital that cannot be used to buy a surging leader.

The overarching intention behind these moves is to increase the "moat density" of the portfolio. By exiting companies that face intense competition or cyclical headwinds (like Shift4 and Blend Labs) and consolidating into companies with dominant, "toll-booth" business models (like Amazon and Zscaler), ShawSpring is preparing for a market environment where only the strongest platforms will thrive. They are raising the "quality bar" for what earns a spot in their 12-stock concentrated list. This is a defensive posture in terms of quality, but an aggressive one in terms of concentration.

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: Mid-cap SaaS (monday.com), fintech (Shift4 Payments), and cyclical real-estate tech (CoStar, Procore). 2. Why sell: These sectors face increasing competition, "spend fatigue" from enterprise customers, and higher sensitivity to macroeconomic cycles. 3. Bought what: Cybersecurity "Zero Trust" leaders (Zscaler), mega-cap cloud and logistics platforms (Amazon, Coupang), and AI-enabling energy/data infrastructure (Constellation Energy, GDS). 4. Why buy: These companies provide the "non-discretionary" utility of the modern age. You cannot run a business without security, you cannot compete without cloud/logistics efficiency, and you cannot run AI without power. 5. Overall change: The portfolio has become a "fortress of platforms," characterized by higher moats, larger scales, and more essential services.

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.