Dorsey Asset Management Q4 2025 13F Holdings and Activity Report

I. Institutional Overview

As of December 31, 2025, Dorsey Asset Management manages a reported 13F equity portfolio valued at approximately $1.15 billion . While this scale is modest compared to multi-billion-dollar hedge fund titans, the institutional "psychological portrait" revealed by the data is one of extreme focus and unwavering discipline. With only 10 holdings in the entire portfolio, Dorsey operates with a level of concentration that would make even the most aggressive fund managers pause. This is not a portfolio designed to track an index; it is a collection of "best ideas" where each position must justify its existence against a rigorous set of qualitative and quantitative criteria.

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

While the weights look stable on the surface, the underlying activity tells a story of significant rotation. The Communication Services sector, at 22.59%, remains a pillar of the portfolio, but the massive 49.48% reduction in GOOG (Alphabet) and the 16.53% reduction in META (Meta Platforms) suggest a cooling of enthusiasm for digital advertising giants. This could be interpreted as a macro judgment that the "easy money" in big-cap tech platforms has been made, or perhaps a concern regarding the impact of generative AI on the traditional search and social media moats.

From this allocation, we can infer that Dorsey Asset Management is positioning for a "higher-for-longer" or "uncertain growth" environment. The reliance on Healthcare and mission-critical Industrials provides a safety net, while the concentrated bets in ASML and Live Nation provide the "alpha" engines. The firm is moving away from the "everything rally" in tech and becoming much more discerning, focusing on companies that have the pricing power to combat inflation and the structural advantages to survive a potential economic slowdown. The lack of exposure to Financials, Energy, or Utilities further emphasizes a focus on structural moats over cyclical or regulated ones.

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

ASML is not just a holding; it is the cornerstone of Dorsey’s current investment thesis. Occupying 17.89% of the portfolio, it is a "conviction holding" in the truest sense. The decision to add 11.04% to the position this quarter, despite its already massive weight, signals that Dorsey believes ASML’s moat is widening. ASML’s business model is built on a literal monopoly in EUV (Extreme Ultraviolet) lithography, which is required to manufacture the world’s most advanced semiconductors. As the AI revolution accelerates, the demand for high-performance chips grows exponentially, and ASML is the only company that can provide the "printing presses" for these chips. The weight change from 15.07% to 17.89% is a combination of active buying and price appreciation. Dorsey is clearly comfortable with the valuation, likely viewing the company’s long-term earnings power as being undervalued by the market’s short-term focus. This is a bet on the fundamental physics of computing.

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? The estimated $106 million deployed into LYV and ASML was largely funded by the massive reduction in Alphabet (GOOG) and Meta (META) , which recouped over $87 million in cash (see Section V). This is a textbook example of "inventory reallocation." Dorsey is recycling capital from "Mature Digital Moats" into "Emerging and Structural Moats." This rotation suggests a belief that the risk-reward profile of the "Magnificent Seven" style tech stocks is becoming less attractive compared to specialized infrastructure and experience-based businesses.

These buy operations have slightly increased the portfolio's "offensiveness." While ASML is a stable giant, its stock can be volatile based on semiconductor cycles. Live Nation also carries higher regulatory and discretionary spending risk than a defensive healthcare stock like Danaher. However, by adding these names, Dorsey is ensuring the portfolio has significant exposure to the most powerful secular growth trends of the late 2020s: AI infrastructure and the Experience Economy. This move increases the "active share" of the portfolio and distances it even further from the S&P 500.

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 sells is estimated at over $128 million . This capital was used to: 1. Fund the $85.92M entry into Live Nation. 2. Fund the $20.45M addition to ASML. 3. Likely increase the cash balance or cover redemptions (though 13Fs don't show cash). The "Sell Digital/Retail, Buy Infrastructure/Experience" rotation is the defining theme of this quarter.

Dorsey is "cleaning up" the portfolio. By reducing the tail (Enovis) and the legacy tech giants (Alphabet/Meta), he is concentrating the fund's firepower into a smaller number of even higher-conviction bets. The intent is to increase the quality and "moat-density" of the portfolio, even if it means walking away from long-term winners.

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

For the past decade, the "smart money" logic was simple: buy the digital platforms (Alphabet, Meta) that collect "rents" on global attention and advertising. However, Dorsey’s massive 50% cut in Alphabet and 16% cut in Meta signals the end of that era's dominance in his strategy. He is replaced "Digital Rents" with two distinct types of moats:

Retail investors can learn two major lessons from Dorsey this quarter. First, "Concentration is a tool for outperformance." You don't need 50 stocks to build wealth; you need 10 that you understand deeply. Second, "Don't be afraid to sell your winners if the moat changes." Selling half of a 9-year holding like Alphabet takes immense discipline, but it is necessary if the fundamental thesis (the search moat) is under threat.

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.