Delphi Management Q4 2025 13F Holdings and Activity Report

I. Institutional Overview: The Psychological Portrait and Scale Analysis of Delphi Management

The psychological portrait of Scott Black, as reflected in this filing, is one of disciplined diversification and unwavering value orientation . With 75 holdings in a $101 million portfolio, the average position size is roughly $1.35 million, or about 1.3% of the total portfolio. This suggests a "multi-bet" strategy where the manager seeks to capture the "value factor" across a broad spectrum of companies rather than betting the house on a handful of high-conviction names. This level of diversification acts as a natural hedge against idiosyncratic risk—the risk that a single company’s failure could derail the entire fund. For Black, the goal is not necessarily to find the next "unicorn" but to assemble a collection of "undervalued workhorses" that, in aggregate, will outperform the broader market through mean reversion and dividend compounding.

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: Macro Signals and Track Selection

The most striking feature of the allocation is the massive 34.80% weight in Financials . When we combine the top three sectors—Financials, Technology, and Consumer Discretionary—they account for 69.29% of the total portfolio. This indicates a highly focused macro bet . By allocating over a third of the fund to Financials, Scott Black is signaling a strong belief in the resilience of the banking and insurance systems. This is not a "defensive" posture in the traditional sense (like buying Utilities); rather, it is an "offensive value" play. Financial stocks often trade at lower P/E and P/B multiples, fitting Black’s criteria, and they benefit from a stable or slightly rising interest rate environment which boosts Net Interest Margins (NIM).

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: Portfolio Cornerstone and Core Logic

Berkshire Hathaway remains the #1 holding, a position Scott Black has maintained for over a decade. This is a "conviction holding" in its purest form. Berkshire is essentially a proxy for the American economy, offering exposure to insurance (GEICO), railroads (BNSF), energy, and a massive portfolio of public equities. From a value perspective, Berkshire is the gold standard: it trades close to its book value, possesses a "fortress" balance sheet with over $150 billion in cash, and is managed by the ultimate value practitioners. The slight 2.88% reduction in shares this quarter is likely a minor "rebalancing" or "trimming" rather than a change in thesis. Interestingly, despite the share reduction, its weight in the portfolio increased from 2.41% to 2.46%, indicating that Berkshire’s stock price outperformed the rest of the portfolio during the quarter. For Delphi, BRK.B serves as the "low-beta" foundation that provides stability during market turbulence.

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: Offensive Direction and Capital Flow

Where did the money come from? The total estimated additions (Top 8) amount to roughly $6.5 million . This is almost perfectly offset by the cash recouped from the major exits (ORCL, DOX, FI, etc.), which totaled approximately $6.7 million . This is a classic "inventory reallocation." Black is not adding new capital to the market; he is "trading up"—selling stocks that have reached their price targets and buying those that are currently out of favor. This "sell high, buy low" rotation is the hallmark of a disciplined value manager.

These additions have increased the portfolio’s "Cyclicality" and "Beta." By adding banks and steel companies, the fund will likely become more sensitive to GDP growth and interest rate movements. However, because these stocks were bought at low multiples, the "downside risk" is mitigated by their valuations. This move represents a shift from a "defensive" posture to a "proactive value" posture, suggesting that Scott Black is optimistic about the underlying strength of the U.S. economy in 2026.

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: Risk Avoidance and Strategy Adjustment

The "quality" of these exits is exceptionally high. Most were "High amount + high weight" strategic retreats from long-term winners (Oracle, Lennar, Fiserv). This is the definition of "selling into strength." The fund is not selling because of panic; it is selling because it has won. This "harvesting" of gains is essential for a $100M fund to maintain its "Value" mandate. If Black kept holding Oracle at 30x earnings, he would no longer be a value investor; he would be a growth investor.

From these exits, we can identify three key risk areas Black is avoiding: 1. AI Hype Overvaluation: Exiting Oracle and NICE Ltd. suggests a skepticism toward current AI-driven valuations in software. 2. Housing Market Sensitivity: Exiting Lennar and REV Group (specialty vehicles) suggests a cautious view on big-ticket cyclical purchases. 3. Energy Volatility: Exiting Diamondback (FANG) and Matador (MTDR) shows a desire to avoid the "commodity roller coaster."

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

Sold: High-multiple Tech and Housing stocks that reached intrinsic value. 2. Why: To lock in triple-digit gains and avoid "valuation gravity." 3. Bought: Low-multiple Financials and Materials. 4. Why: To capture the "Value Factor" in sectors that benefit from domestic infrastructure spending and a stabilizing interest rate environment. 5. Result: A portfolio that is more "Value-Pure" today than it was six months ago.

For retail investors, the key takeaway is discipline . Scott Black’s willingness to sell a stock like Oracle after a 250% gain—even as the AI narrative is still in full swing—is a lesson in avoiding greed. Furthermore, his move into M&T Bank suggests that for those with a 3-5 year horizon, the "scary" headlines in regional banking may actually be a "Value" opportunity. However, investors should note that Black’s 75-stock diversification is his primary risk management tool. Simple imitation of his top 3 buys without his level of diversification could lead to excessive idiosyncratic risk.

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.