Hillman Capital Management Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

To understand the psychological portrait of Hillman Capital, one must look beyond the raw numbers and into the philosophy of "Quality at a Reasonable Price" (QARP) with a specific tilt toward "Distressed Quality." Hillman’s investment style is characterized by a search for companies that possess enduring competitive advantages—what Warren Buffett would call "moats"—but are currently facing temporary headwinds that have depressed their valuations. With 56 holdings, the average position size is approximately 1.78% of the portfolio, yet the top-heavy nature of the holdings (where the top 10 represent a significant portion of the total value) indicates that Hillman is not afraid to place larger bets when the risk-reward profile is skewed in his favor.

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II. Sector Allocation Analysis

The most striking feature of Hillman’s sector layout is the massive concentration in Healthcare (27.03%) and Consumer Staples (21.72%) . Combined, these two defensive sectors account for nearly 49% of the entire portfolio. This is a powerful macro signal. Healthcare and Consumer Staples are traditionally "recession-resistant" sectors; people continue to buy medicine and household essentials regardless of interest rate hikes or GDP fluctuations. By allocating nearly half of the portfolio to these areas, Hillman is signaling a cautious, defensive posture . This suggests the institution may perceive the current market environment as being late-cycle, or perhaps believes that valuations in growth-oriented sectors like Technology have become stretched, making the "safety" of Healthcare and Staples more attractive on a risk-adjusted basis.

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 35.11% reduction in share count this quarter, WBD remains the #1 holding in the portfolio with a 3.89% weight. This position is a classic "Hillman play"—a distressed asset with high-quality intellectual property (HBO, DC Universe, CNN) trading at a deep discount due to a heavy debt load and the messy transition from linear TV to streaming.

The Top 10 holdings reveal a manager who is disciplined in profit-taking (WBD, ASML) and patient with recovery plays (EL, BA). The portfolio is not a "buy and hold forever" collection; it is a living organism where weights are actively adjusted based on valuation and macro-economic shifts. The high concentration in the Top 10 (nearly 35% of the total portfolio) shows that Hillman is a "focused" manager who believes that a few well-chosen, high-quality companies will drive the majority of long-term returns.

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, Hillman significantly reduced his holdings in "winners" like WBD, ASML, and GSK, as well as a near-total exit from Nucor (NUE). This is a clear "Inventory Reallocation" strategy. He is harvesting gains from stocks that have performed well and recycling that capital into "laggards" or "new themes" (DuPont, Akamai) where he sees greater future upside. This "sell high, buy low" discipline is the hallmark of a successful value manager.

The timing of these buys—adding broad market exposure (SPY) and industrial materials (DD)—suggests that Hillman is not "bearish" on the economy, but rather "selective." He is preparing for a market that may be more "sideways" or "sector-driven" rather than a broad-based "everything rally." By focusing on companies with strong balance sheets and essential services, he is positioning the portfolio to be "antifragile"—able to benefit from growth while being protected from a downturn.

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 total cash recouped from these top 8 reductions/exits is approximately $14.3 Million . This capital was almost perfectly recycled into the $11.1 Million of major buys (SPY, DD, AKAM, FI, KMX). This is a textbook example of "Active Portfolio Management." Hillman is not waiting for new client cash to make moves; he is constantly "optimizing the inventory"—selling what is "expensive" or "peaked" to buy what is "cheap" or "emerging."

The major risk signal here is the retreat from Industrials/Steel (Nucor) and the trimming of "High-Multiple" Tech (ASML) . This suggests Hillman is wary of sectors that are either (a) highly sensitive to a manufacturing slowdown or (b) priced for perfection. His move toward "Infrastructure Tech" (Akamai, Fiserv) and "Specialty Materials" (DuPont) shows a preference for companies with more "idiosyncratic" growth drivers rather than those dependent on broad macro-commodity cycles.

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 overarching theme of Hillman Capital Management’s Q4 2025 activity can be summarized as "Strategic Consolidation into Antifragile Platforms." Hillman is executing a sophisticated "three-step dance": 1. Harvesting the Past : Selling down long-term cyclical winners (Nucor) and recent recovery home-runs (WBD) to lock in gains. 2. Broadening the Base : Using a new, significant position in the S&P 500 ETF (SPY) to provide a diversified "beta" foundation, reducing the risk of being "wrong" on a single stock. 3. Targeting the Future "Pipes" : Aggressively adding to companies that provide the essential infrastructure of the modern economy—whether it’s DuPont in specialty materials, Akamai in digital security, or Fiserv in financial payments.

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.