Delphi Management Q1 2026 13F Holdings and Activity Report

I. Institutional Overview

The total portfolio market value of $82.25 million reflects a firm that is comfortably situated in the boutique space. This scale allows Delphi Management to invest in small and mid-cap companies that would be "un-investable" for larger institutions due to liquidity constraints. By operating in this niche, Scott Black can uncover value in corners of the market that are often overlooked by the Wall Street giants. However, the first quarter of 2026 appears to be a period of significant consolidation and "trimming" for the firm. The data shows a widespread reduction in share counts across almost all existing positions, suggesting a tactical move toward liquidity or a cautious outlook on the broader market valuation.

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II. Sector Allocation Analysis

The dominance of Financials suggests that Delphi Management is positioned to benefit from a specific interest rate environment. Typically, a high allocation to banks, insurance companies, and asset managers implies a belief that net interest margins will remain healthy or that the credit environment is stable enough to support financial earnings. Given the presence of regional banks like Camden National and Bar Harbor Bankshares alongside giants like JPMorgan Chase, the firm is betting on both local economic resilience and global financial stability.

The relatively low weights in Consumer Staples (2.92%) and Healthcare (6.74%) suggest that Delphi Management is not currently in a "full retreat" mode. Usually, when an institution fears an imminent recession, these defensive sectors see a significant uptick in weight. By keeping these weights low and maintaining higher exposure to Industrials and Materials, the firm seems to be betting on a "soft landing" or a continued, albeit slower, economic expansion. The 3.61% in Energy and 3.03% in Materials serve as a modest inflation hedge, ensuring the portfolio isn't entirely vulnerable to rising input costs.

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III. Top 10 Holdings Deep Dive

From a fundamental perspective, Delphi’s commitment to Apple is a bet on the world’s most powerful consumer ecosystem. Apple’s transition from a hardware-centric company to a services-driven powerhouse provides the kind of recurring, high-margin revenue that value investors crave. The firm likely views Apple not just as a "tech stock" but as a "consumer staple of the digital age." The decision to hold steady (with only a negligible trim) suggests that Scott Black believes Apple’s valuation, while perhaps full, is justified by its massive share buyback program and its fortress balance sheet. In an uncertain market, Apple serves as a high-liquidity, low-default-risk proxy for global consumer health.

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IV. Major Buys/Additions

The motivation here is likely a " valuation trough mining " play. Academy Sports operates in a highly competitive sporting goods landscape, but it distinguishes itself through a "value-first" regional strategy, primarily in the Southern United States. At the time of purchase, ASO likely traded at a significant discount to its primary competitor, Dick's Sporting Goods. For a value manager like Scott Black, ASO offers a compelling fundamental story: a company with strong free cash flow, a disciplined expansion plan, and a "sticky" customer base that views outdoor activities and sports as essential lifestyle components. By entering this position now, Delphi is betting that the market has undervalued ASO’s resilient margins and its ability to take market share from less efficient retailers. This is a classic "buy the unloved" value move.

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V. Major Sells and Exits

This is a textbook case of " mission accomplished " profit-taking. D.R. Horton, the largest homebuilder in the U.S., has been a massive beneficiary of the housing shortage and the post-pandemic migration trends. However, with mortgage rates remaining elevated and home affordability at historic lows, the "easy money" in the homebuilding sector has likely been made. For a value manager who has held the stock for a decade, the decision to exit suggests a belief that the risk-reward profile has finally tilted toward the downside. It takes immense discipline to sell a 10-year winner, and this move underscores Delphi’s commitment to "selling high."

Both companies have benefited from the "AI infrastructure" narrative. Dell, in particular, saw its valuation re-rated as investors scrambled for exposure to AI servers. Jabil, as a key manufacturing partner for tech giants, followed a similar trajectory. Delphi’s decision to aggressively trim these positions suggests they believe the "AI hype" may have pushed these valuations ahead of their fundamental earnings power. This is not a total exit—they still hold significant stakes—but it is a clear signal that they are "de-risking" their technology exposure after a period of outperformance.

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 : Long-term winners in housing (DHI), asset management (JHG), and AI-hardware (Dell/Jabil). 2. Why Sell : To lock in decade-high profits and reduce exposure to interest-rate-sensitive and "hyped" sectors. 3. Bought What : Specialty retail turnarounds (URBN), value-oriented retailers (ASO), and specialty insurers (AXS). 4. Why Buy : To capture "hidden value" in sectors that are currently out of favor but possess strong individual fundamental drivers. 5. Overall Change : The portfolio has become slightly more "offensive" in its individual stock selection but more "defensive" in its overall capital allocation (through broad trimming).

Disclaimer : This analysis report is intended for informational and educational purposes only. It does not constitute investment advice, financial guidance, 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 based on the data provided in this report. The author and the platform assume no responsibility 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.