Focus Partners Wealth 13F Portfolio

The biggest buys table reads like a declaration that security selection alpha in mega-cap tech is no longer worth the idiosyncratic risk. SMH is the standout: a +530.0% add and a roughly $324.8M dollar increase, taking it to 0.40% of the book. That’s a direct way to keep riding the semiconductor cycle while defusing single-name blow-up risk after huge gains in AMD, Micron and Lam.

Broad US equity beta is another clear winner. IVV is up 9.5% in shares with about $156.9M of fresh capital, and ITOT’s shares are up 27.7% with an estimated $303.9M add. Those moves say the fund wants exposure to the market’s earnings engine without needing to keep picking the next AI darling.

International and value tilts are getting real dollars, not lip service. VEA’s share count jumps 43.8% (about $258.7M) and DFIV is up 27.0% (around $197.5M), reinforcing a thesis that non-US and value factor spreads are attractive late in the cycle. XLI and XLF, up 21.5% and 16.9% in shares respectively, round out a bet that industrials and financials can finally start to participate more fully if growth broadens beyond the mega-cap tech complex.

On the funding side, the story is dominated by profit-taking in the most explosive AI beneficiaries. AMD is the poster child: shares are down 49.2%, an estimated -$766.1M dollar swing, even though the position still sits at 0.81% of the book and is up 176.9% versus cost. Micron sees a 19.2% share cut (about -$105.0M) off a huge 548.6% gain, and Lam Research is trimmed 35.0% (roughly -$382.4M) after more than doubling versus their average buy price.

Broadcom is in the same bucket, down 17.3% in shares and about -$210.2M in dollar exposure while still sitting on a 41.2% gain. These are not repudiations of the AI thesis; they’re classic de-risking trades out of crowded, high-beta winners into diversified structures like SMH and the S&P ETFs.

The fund is also quietly cooling its pure mega-cap growth tilt. Alphabet’s GOOGL line is down 14.1% in shares (about -$242.2M), GOOG is eased 3.9%, Amazon is cut 10.9% (around -$200.0M), and Microsoft is trimmed 4.4%. Even Thermo Fisher (down 24.6% in shares) and communication-services ETF XLC (down 19.1%) serve as additional funding sources, consistent with a view that the narrow leadership phase is maturing.

On the surface, sector weights barely budged: technology dropped from 32.08% to 29.0%, while the nebulous “unclassified” bucket — mostly broad-market, sector and factor ETFs — rose from 58.94% to 62.79%. The real action is under the hood: single-name tech risk is being swapped for systematic exposure tied to indices and semis baskets.

Within that unclassified bucket lie XLK, VGT and SMH on the tech side; XLF, XLI and XLV on cyclicals and defensives; plus a suite of Dimensional and Vanguard factor funds like DFAC, DFIV, DFUS, DFUV and VTV. The combined effect is to keep the portfolio levered to equity risk premia while reducing the share of return driven by idiosyncratic stock stories.

Outside tech, sector moves are incremental but telling. Consumer discretionary slips slightly as Amazon is trimmed, even though Walmart is modestly increased. Finance, represented here mainly by JPM plus XLF, edges down from 2.05% to 1.96% at the single-name level, but the ETF add in XLF signals they prefer diversified financials exposure over a concentrated bank bet. Industrials decline from 1.15% to 0.89% as Thermo Fisher is reduced, even while XLI is added, again echoing the “individual out, sector basket in” theme.

Taken together, these moves paint a manager positioning for a still-bullish, but more fragile, phase of the cycle. The fund wants to own equities — especially tech and semis — but is less willing to take big single-name swings now that AI leaders have run so far and contributed to a 15.62% quarter.

The heavy adds to IVV, ITOT, VEA, DFIV and other factor sleeves suggest they expect breadth to improve: more of the return coming from global value, small and mid caps, and non-US markets rather than just the top of the S&P. At the same time, the boost to XLI and XLF hints at an under-the-radar rotation into economically sensitive sectors that could benefit if nominal growth stays resilient.

Finally, the increased stake in VGIT and the steady, near-flat P&L in JAAA signal a desire to balance equity risk with some interest-rate and credit ballast. If volatility spikes or leadership rotates sharply, this barbell — broad beta and factor ETFs on one side, still-meaningful but smaller AI and mega-cap stakes on the other — gives Focus Partners Wealth room to keep compounding without having to correctly call the next single-stock winner.