1832 Asset Management L P 13F Portfolio

The biggest buys this quarter are unambiguous: 1832 is paying up for businesses that own chokepoints in AI and health care. These aren’t speculative narratives; they’re scaled platforms with visible unit economics.

• Eli Lilly: The standout move is Eli Lilly, up 293.2% in shares and adding about $355.0M, taking the position to 0.58%. They’re buying well above a $1,000 average cost, yet still sitting on a 20.8% gain vs average buy, which says they see weight, not optics, as the risk.
• Alphabet (GOOGL): Alphabet’s Class A stock gets a 23.5% share add worth roughly $322.7M, lifting it to 2.08% of the book. Paired with a trim in GOOG, this looks like a capital-structure preference decision, not a change in business view; overall Alphabet exposure is being leaned into as an AI infrastructure winner.
• JPMorgan: A 36.9% add (~$242.2M) to JPMorgan, now 1.10%, shows they still want some classic rate-sensitive exposure — but in the global best-in-class operator, not just domestic Canadian banks.
• Broadcom and AMD: AVGO (+48.1%, about $213.5M added) and AMD (+29.0%, ~$124.6M added) show a clear tilt toward high-leverage silicon suppliers over capital-intensive fabs and tools. They’re content to own the pricing power layer of the AI stack.
• Microsoft and Royal Bank: Smaller but still meaningful adds to Microsoft (+4.2%, ~$98.2M) and Royal Bank (+3.2%, ~$109.9M) reinforce the pattern: reinforce incumbent platforms that already compound at scale rather than hunting for new stories.

Add in incremental buys of UNH, ASML, ETN, and even a contrarian top-up in CAE despite being underwater, and you get a portfolio that is clustering capital around scalable, non-fragile profit pools.

Funding for this build-out came from cutting around the edges of prior winners and dialing back cyclical and consumer exposure. The trims are not random; they target capital-intensive, more commoditized, or rate-pressured parts of the book.

• Semis manufacturing and tools: Taiwan Semiconductor is the single largest dollar trim, with shares cut 32.3% (about -$403.4M). Applied Materials sees a 35.7% reduction (roughly -$208.6M). Both are deeply in the green — TSM at +126.4% vs cost, AMAT at +94.8% — so this is classic “take gains in fabs and tools, recycle into higher perceived duration” behavior.
• Legacy tech hardware: Cisco is down 31.3%, freeing roughly $200.2M, a clear statement that networking equipment is not where they want incremental AI dollars.
• Canadian banks reshuffle: TD is trimmed 7.5% (-$274.7M) and Bank of Nova Scotia 11.0% (-$174.0M), while Royal Bank is increased. They are consciously re-ranking the domestic banking stack toward what they see as the more robust franchise.
• Rails and consumer: Canadian National is cut 11.6% (about -$258.1M), and TJX and Amazon give up a combined ~-$432.3M in exposure through 14.0% and 20.8% share reductions respectively. They are easing off both goods-heavy logistics and lower-margin discretionary, likely viewing them as more cyclically exposed sources of cash.

Sprinkled through are smaller trims in Open Text (where they’re still sitting on a loss), health-care staples like Johnson & Johnson, and yield names like Fortis and various pipelines. The message is consistent: prune where cash flows are either more cyclical, more capital-intensive, or less differentiated.

On the surface, sector weights barely budge, but underneath, 1832 is quietly re-wiring what drives the P&L. Technology creeps from 28.63% to 29.04%, Finance dips slightly from 25.99% to 25.78%, and Energy and Utilities are essentially flat.

Within Technology, however, there is a meaningful migration. They are carving back manufacturing-heavy names (TSM, AMAT) and old-line enterprise hardware (CSCO) in favor of software and platform economics (MSFT, GOOGL, META) plus select high-margin chip designers (AVGO, AMD) and irreplaceable equipment like ASML and KLAC. This is tech exposure that leans into bottlenecks and network effects rather than commoditized capacity.

Health Care is the most notable step-change, rising from 2.22% to 3.11% on the back of Eli Lilly and UnitedHealth adds, with J&J modestly trimmed but intact. That is a clear bid for long-duration, policy-protected cash flows to complement the AI build-out. Consumer Discretionary falls from 7.02% to 6.26% as they cut TJX, Amazon, and Costco, while Industrials ease from 9.48% to 8.98% with CNI and TMO trims even as they add to NTR.

Real Estate (as classified) inches up to 7.48%, driven less by buildings than by payments rails Visa and Mastercard, which sit in that bucket here. Energy at 8.06% and pipelines like Enbridge, TC Energy, and Pembina remain roughly constant, functioning as a yield and inflation hedge sleeve rather than a growth engine.

Read together, these moves say 1832 expects the AI and weight-loss/biopharma booms to keep compounding, but wants that upside expressed through oligopolistic platforms rather than capital-intensive arms-race capacity. They are comfortable adding to Microsoft, Alphabet, Broadcom, AMD, ASML, and Eli Lilly at already-elevated bases because they view the underlying cash flows as both underpriced and resilient.

At the same time, they’re de-risking the more cyclical edges of the book: rails, apparel and off-price retail, consumer e-commerce, and some of the more rate-sensitive Canadian banks. JPMorgan and Royal Bank get the nod as the surviving financials that can earn through the cycle, while life insurers and secondary Canadian lenders are gently faded.

The unchanged ballast in pipelines, energy producers, and utilities — plus a modest presence in precious metals via Agnico Eagle and Franco-Nevada — shows they still want income and optionality if inflation or volatility resurges. But the growth narrative of the portfolio is now firmly centered on AI infrastructure and scalable health-care franchises. If those themes underperform, this book will feel it; if they continue to dominate index earnings, 1832 has repositioned itself closer to the winners’ table than a traditional Canadian value shop.