GMO Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The current scale of $38.94 billion suggests that GMO remains a titan in the institutional space, capable of moving markets through its thematic shifts. The sheer number of stocks—over 600—indicates that while the firm makes high-conviction bets on "Quality" mega-caps, it also maintains a broad exposure to various factors, likely managed through systematic models. This quarter’s data shows an institution that is actively refining its definition of safety. In an era of technological disruption and macroeconomic uncertainty, GMO appears to be leaning into companies with "impenetrable balance sheets"—those capable of withstanding high interest rates and inflationary pressures.

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II. Sector Allocation Analysis

The most striking feature of this allocation is the heavy concentration in the top three sectors: Technology (31.93%) , Healthcare (23.80%) , and Communication Services (11.95%) . Together, these three sectors account for 67.68% of the entire portfolio. This level of concentration indicates a "high-conviction" macro stance. By allocating over two-thirds of its capital to these areas, GMO is effectively betting on a "Barbell Strategy." On one side of the barbell is Technology and Communication Services—sectors that drive growth and benefit from the ongoing digital transformation and AI integration. On the other side is Healthcare—a traditionally defensive sector that provides a massive anchor of stability against economic volatility.

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 remains the undisputed #1 holding for GMO, with a market value of $2.29 billion . This is a "conviction holding" in every sense of the word, having been in the portfolio for over a decade. This quarter, GMO increased its share count by 17.25% , a significant addition for a top-ranked position. However, interestingly, the portfolio weight of Microsoft actually decreased from 6.51% to 5.85%. This divergence suggests that while GMO is aggressively buying more shares, the rest of the portfolio (or the market value of other holdings) grew at a faster rate, or Microsoft’s stock price faced a temporary relative cooling.

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 a "Growth Acceleration Bet" combined with a "Quality Moat." Mastercard, along with Visa Inc. (which also saw a $116M addition), operates as a global toll booth for commerce. As the world continues its transition from cash to digital payments, Mastercard captures a fee on every transaction. For GMO, this is a "capital-light" business model with extremely high margins—exactly the kind of "Quality" Jeremy Grantham prizes. The timing suggests that GMO believes Mastercard’s valuation has become attractive relative to its long-term compounding potential, or that they are positioning for a resilient consumer spending environment.

This is a "Strategic Pivot" in the semiconductor space. While GMO reduced its stake in hardware equipment (Lam Research), it opened a massive position in the software used to design those chips. This reflects a belief that the "design" phase of the AI cycle is more durable and has higher margins than the "manufacturing" phase. Synopsys operates in a near-duopoly, providing the "picks and shovels" for the entire semiconductor industry. For GMO, this is a way to stay exposed to the AI theme while moving "up the value chain" into a more software-centric, recurring-revenue model.

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

Lam Research has been a massive winner in the AI-driven chip boom. However, its business is inherently cyclical. GMO’s decision to trim over a quarter of the position suggests a belief that the "initial build-out" phase of AI data centers may be reaching a plateau, or that the stock’s valuation has finally hit a "Grantham-style" ceiling. This is a classic "Profit-Taking" move, harvesting gains from a high-flying cyclical to fund the "Quality" additions in payments and software.

The reduction in Lam Research and the exit from regional banks serve as a warning. GMO is signaling that the "Beta" trade in semiconductors and the "Value" trade in regional banks may be over. Instead, they are seeking "Alpha" through specific, high-quality companies that can grow independently of the broader economic cycle. The exit from the Japan ETF also suggests a more cautious view of international "Value" plays that are dependent on currency fluctuations.

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 : Cyclical semi-hardware, regional banks, and international value ETFs. 2. Why : To lock in profits from the AI hardware boom and avoid the "long tail" of banking and geopolitical risks. 3. Bought what : Global payment networks, dominant streaming media, and healthcare service platforms. 4. Why : These companies possess "impenetrable moats," high recurring revenue, and the ability to maintain margins regardless of inflation or interest rate volatility. 5. Overall Result : A portfolio that is more concentrated in "Mega-Cap Quality," significantly more defensive in its healthcare exposure, and more focused on the software/service side of the technology revolution.

Disclaimer : This analysis is for informational and research purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. All investments involve risk, including the possible loss of principal. Investors should conduct their own due diligence or consult with a qualified financial advisor before making any investment decisions. The data provided in this report is sourced from public filings and is subject to the limitations and errors inherent in such disclosures.

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.