Dorsey Asset Management Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

As of the portfolio snapshot on March 31, 2026, Dorsey Asset Management manages a reported equity portfolio valued at approximately $1.26 billion . This represents a significant pool of capital that is deployed with extreme precision. The most striking characteristic of this institution is its concentration. With only 11 holdings in the entire portfolio, Dorsey Asset Management exemplifies the "high conviction" investment style. This is not a firm that seeks to track an index or hide behind diversification. Instead, it places massive bets on a handful of businesses that the team believes possess impenetrable moats and superior long-term growth prospects.

In summary, Pat Dorsey’s current portfolio reflects a "Quality-Concentrated" psychological portrait. The institution is currently in a state of "Strategic Re-alignment," moving away from certain long-term winners where the moat might be thinning or the valuation has become prohibitive, and aggressively entering new themes that offer better risk-adjusted returns in the current macroeconomic environment. The transition seen in this report is one of the most significant in the firm's recent history, marking a departure from several decade-long or multi-year convictions in favor of fresh opportunities in software, infrastructure, and financial 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.

II. Sector Allocation Analysis

The heavy weight in Communication Services (24.79%) and Technology (21.00%) reflects Dorsey’s historical preference for capital-light business models with strong intangible assets or network effects. However, the trend in both sectors is downward this quarter. The exit from Alphabet Inc. and the reduction in ASML Holding N.V. suggest a tactical retreat from "Big Tech" and semiconductor hardware. This may indicate a belief that these sectors have reached a valuation ceiling or that the competitive dynamics (the "moats") are being challenged by new technological shifts, such as the evolution of generative AI and its impact on traditional search and hardware cycles.

A deeper look at the industry trends reveals a fascinating transition. By reducing ASML Holding N.V. (the world's sole provider of EUV lithography machines), Dorsey is trimming exposure to the "picks and shovels" of the semiconductor industry. Simultaneously, by opening a large new position in AppLovin Corporation, the firm is leaning into the "Software and Application" layer of the tech stack. This indicates a belief that the primary value creation in the next phase of the digital economy will come from software platforms that can leverage data and AI to drive user engagement and monetization, rather than the hardware manufacturers themselves.

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

The decision to reduce the position by over 27% is likely a tactical move rather than a fundamental rejection of the company's moat. Given the massive run-up in semiconductor stocks over the past year, this reduction appears to be active profit-taking and risk management. When a single stock exceeds 17% of a portfolio (as it did last quarter), even the most high-conviction managers will often trim to prevent a single point of failure. The fact that it remains the #1 holding suggests that Dorsey still views ASML as the premier "toll-taker" of the digital age, but is wary of the cyclical nature of semiconductor capital equipment spending and current valuation levels.

The 7.54% reduction in shares this quarter is relatively minor, suggesting a "rebalancing" operation. The weight of the position dropped from 15.18% to 12.27%, partly due to the share reduction and partly due to the introduction of new capital into other positions. AerCap serves as a play on the long-term recovery and growth of global aviation. As airlines move toward more flexible, lease-based fleet models to manage their balance sheets, AerCap’s dominant market position allows it to earn consistent, high-quality returns on its massive fleet of hard assets.

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

As discussed in the holdings dive, Sunbelt is a "Scale Moat" play. The motivation here appears to be a "Growth Acceleration Bet" combined with a valuation opportunity. The equipment rental industry is inherently cyclical, but the top players like Sunbelt have historically gained market share during downturns because they have the balance sheet strength to keep investing while smaller competitors pull back. By making this the largest new addition, Dorsey is betting that the structural shift from "owning" to "renting" industrial equipment is still in its early innings, and that Sunbelt's technological lead in fleet management will drive superior margins.

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

This is a "Logical Clearing" based on the perceived threat to Google’s search moat from Generative AI and Large Language Models (LLMs). If users shift from "searching" for links to "asking" an AI for answers, the traditional high-margin search advertising model could be permanently impaired. Dorsey is a disciplined investor; if he believes the "moat" is being breached by a technological shift, he will exit regardless of the holding period. This exit marks the end of an era for the portfolio and a clear pivot toward new tech winners like AppLovin.

While not a complete exit, the 27.06% reduction in ASML is a "Major Strategic Contraction." ASML was the portfolio's largest bet. Trimming nearly $69 million worth of shares indicates a desire to reduce exposure to the high-valuation, high-expectation semiconductor sector. This is likely "Profit-Taking" at its finest. Having benefited from the AI-driven surge in chip equipment demand, Dorsey is locking in gains and diversifying into other sectors like Industrials and Financials. It reflects a belief that while ASML’s moat is intact, the "easy money" has been made, and the risk of a cyclical slowdown in 2026/2027 is rising.

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 unique theme of this quarter is "From Legacy Dominance to Platform Inflection." Dorsey is moving away from companies that own the past (Alphabet, AutoZone) toward companies that facilitate the future (AppLovin, Uber, Sunbelt). The logic chain is clear: 1. Sell legacy moats where technological disruption (AI) or structural shifts (EVs) are creating "moat erosion." 2. Buy companies that have reached a "profitability inflection point" where their scale and network effects are now generating massive free cash flow. 3. Result: A portfolio that is more concentrated in "Platform" businesses that can leverage data and AI to widen their competitive lead.

Disclaimer: This analysis is provided for informational and educational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security. All investment decisions involve risk, including the possible loss of principal. Investors should conduct their own research or consult with a qualified financial advisor before making any investment decisions. The author and the platform are not responsible for any financial losses resulting from the use of this information.

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.