Discovery Capital Management LLC CT 13F Portfolio

The biggest adds are not a diversified basket; they are a set of high-conviction claims. SanDisk remains the core, but the fund also doubled down on Credicorp and built a new stake in AMC. T1 Energy is another new position, sized at 2.9% of the book. The pattern: own the memory-cycle leader, own Latin American banks levered to rate cuts, and take event-driven swings in cash-generative or distressed consumer names.

• SanDisk: increased 13.0%, now 19.6% of the book. The reported gain versus average cost is 177.9%, so this is pressing a winner, not averaging down.
• Credicorp: shares rose 93.2%, lifting the position to 4.4%. Peru's dominant bank gives the fund direct exposure to Andean credit and rate normalization.
• AMC Entertainment: new 4.1% position at a reported average cost of $1.4. This is a contrarian box-office and balance-sheet recovery bet, sized large enough to matter.
• T1 Energy: new 2.9% position, but the reported average cost of $7.5 is already 36.6% above the current price. That is a speculative domestic energy-manufacturing bet with a painful mark.
• Chevron: new 2.5%. The integrated oil major adds a liquid energy hedge and dividend support to a book that is otherwise long growth and EM financials.

Other adds reinforce the same themes: Nu Holdings up 60.0%, Valero up 40.5%, and Amazon up 41.8%. The fund is not buying the whole market; it is buying specific cash-flow stories and a memory-cycle franchise.

The sells are not random. ON Semiconductor was the biggest source of cash: the fund cut its stake by 88.5%, from a $133.2M position to $15.3M, likely funding much of the SanDisk add and new energy and financial positions. It also cut Avis Budget by 35.5% and Capital One by 35.6%, reducing rental-car cyclicality and consumer credit.

• ON Semiconductor: cut 88.5%, from $133.2M to $15.3M. The fund took a 40.5% gain versus average cost and redeployed.
• Avis Budget: down 35.5%. Rental-car cyclicality looks less attractive than new consumer bets.
• Capital One: down 35.6%. The fund is reducing consumer-credit exposure even as it adds Nu and Credicorp.
• America Movil: down 10.3%. Telecom weight falls from 6.7% to 4.7%.
• Cemex: down 9.1%. Building-materials exposure shrinks.
• Ramaco Resources: down 3.6%, but the position remains 2.9% and sits 47.8% below reported average cost.

These cuts are funding sources and conviction cooling in one package. The fund is not liquidating; it is rotating dollars from broad semis, auto rental, and legacy telecom into memory, EM banks, and energy. The JPMorgan trim of 2.2% is noise by comparison—a small size adjustment, not a statement.

Technology is still the largest sector at 32.6%, but that is down from 42.0% a quarter ago. The decline is not a retreat from tech; it is a concentration shift. ON Semiconductor was gutted, while SanDisk grew to 19.6% and MACOM was added.

Finance rose to 17.3% from 15.5%, and that understates the move because Fiserv—labeled Real Estate in the fact sheet—is really a payments company. Add the increases in Credicorp, Nu Holdings, and Grupo Galicia, and the fund is clearly betting on EM financials. New positions in Goldman Sachs and LPL Financial add capital-markets exposure.

Energy climbed to 8.9% from 7.0% through Chevron, Valero, and YPF. Halliburton was a new oilfield-services buy. Consumer discretionary rose to 17.6% from 15.0%, led by AMC, Amazon, and Take-Two.

Avis and GEO were trimmed, showing the fund is not blindly adding consumer risk. The net consumer-discretionary increase is selective, not a sector-wide chase.

The forward read is a fund willing to make one position the portfolio. SanDisk at 19.6% and top-10 concentration at 49.7% mean Discovery Capital Management is not hedging its memory-cycle view; it is expressing it in size. If NAND pricing and storage demand stay firm, the fund's 2026-Q2 momentum—latest quarter performance of 51.9%—can continue.

The LatAm bank basket and energy adds look like a second, less correlated engine. Credicorp, Nu, and Galicia give exposure to rate cuts and credit normalization in Peru and Brazil. BBVA Argentina adds direct Argentine bank exposure.

Chevron, Valero, and YPF provide an inflation and commodity hedge. Halliburton adds oilfield-services leverage. The new consumer names—AMC, T1 Energy, and Ferrari—show the fund still wants idiosyncratic, event-driven upside.

Take-Two, Five Below, and Warby Parker add smaller consumer bets. Because 13F data lags, the next filing will matter more than this one: watch whether SanDisk is pressed further or trimmed into strength, whether the LatAm bank adds continue, and whether the ON Semiconductor exit is completed. The quarter's message is clear: Discovery is betting on memory, EM financials, and energy, and is funding those bets by selling broad tech and legacy cyclical exposure.