Russell Investments Group 13F Portfolio

The biggest adds by dollars show Russell doubling down on the infrastructure of the AI cycle, not just its poster children. The jump in Micron and KLA, alongside steady builds in Broadcom, AMD, Texas Instruments and other semi names, says they want exposure to bits, bandwidth and the fabs that enable them.

• Micron (MU) is up 43.9% in shares, adding about $556.2M, a clear ramp in AI memory exposure.
• KLA (KLAC) explodes by 1549.1% in shares and roughly $590.1M of value, a bold vote on process control and wafer inspection.
• Broadcom (AVGO) adds 13.6% in shares and about $250.5M, reinforcing the networking and custom silicon backbone of AI.
• CrowdStrike (CRWD) sees shares up 134.6% and roughly $175.2M more at work, even though it sits below cost, signaling high‑conviction security spend tied to cloud and AI workloads.
• Amazon (AMZN) and Booking Holdings (BKNG) add $415.5M and $386.6M respectively, a big endorsement of e‑commerce and travel platforms as AI‑enhanced consumer demand plays.
• Apple (AAPL) and Alphabet’s non‑voting class (GOOG) also see sizable dollar adds, keeping Russell anchored in mega‑cap ecosystems that monetize AI through devices, search, and cloud.
• The fund further scales Amphenol (APH) and Intel (INTC), leaning into the component and laggard CPU side of the compute build‑out.

Taken together, these moves are not a generic tech overweight; they are a deliberate skew toward high‑operating‑leverage beneficiaries of sustained AI capex and cloud security budgets.

On the funding side, Russell is mostly trimming where it is already sitting on enormous gains or where position sizing outran conviction. The standout is Seagate, where they cut the stake by 28.9%; with an 821.6% gain versus cost, this looks like disciplined profit‑taking after a huge run in storage tied to data growth.

• Seagate (STX) is reduced by about $269.4M, turning an outsized win in disk and nearline storage into cash for higher‑priority AI names.
• Alphabet’s voting shares (GOOGL) are trimmed by 5.1%, freeing roughly $131.8M while maintaining overall Alphabet exposure via GOOG, a clean way to rebalance without losing the franchise.
• Taiwan Semiconductor (TSM) is down 4.5% in shares, releasing about $81.2M despite a 642.4% gain, hinting that fab risk and geopolitical concentration are worth lightening even in a structurally strong name.
• UBS is cut 17.2% and TJX 13.8%, together pulling more than $120M from financials and off‑price retail where the easy post‑reopening and restructuring gains may be behind them.
• Lam Research (LRCX), Equinix (EQIX), and Linde (LIN) see modest trims; all are strong long‑term assets, but their prior outperformance and rich positioning make them convenient sources of capital.

This pattern is classic Russell: recycle capital from mature, high‑multiple or geopolitical‑tainted winners into earlier‑stage legs of the same macro story — AI build‑out, secure cloud, and digital consumption.

Sector data shows a subtle, but important, reshaping of risk. Technology’s share of the top book slips from 65.49% to 63.95%, while Consumer Discretionary rises from 7.93% to 8.91% and the unclassified bucket — effectively core beta and bonds — jumps from 1.57% to 3.5%.

• The enormous add to VOO (about $890.1M) makes broad U.S. equity beta a meaningful sleeve at 0.79%, diluting single‑name volatility without diluting the overall growth tilt.
• A 38.1% increase in AGG, adding around $102.9M, introduces a more visible fixed‑income buffer against equity drawdowns — a notable move for a historically equity‑heavy 13F.
• Real estate edges down from 7.81% to 7.27%, with trims in Equinix, Digital Realty and Welltower offset by a small add to Prologis, shifting the mix away from richly valued data centers toward more diversified logistics REIT exposure.
• Health care and financials both nudge lower in weight, even as they add to UnitedHealth, big U.S. banks and pharma; here, price moves and tech outperformance matter more than absolute trading.
• Energy and telecom (really network infrastructure in Cisco) tick slightly higher, but remain small satellites around the central AI and consumer complex.

The real story is that Russell is smoothing the ride of a highly concentrated AI thesis, building ballast in indices and bonds while rotating within tech toward names where incremental capex and unit growth still have room to surprise.

Looking ahead, Russell is clearly not preparing for an AI bust — it is preparing for an AI grind. Heavy incremental capital into Micron, KLA, Broadcom, AMD, Intel and CrowdStrike implies they expect a multi‑year investment cycle in memory, equipment, and security, not a one‑and‑done GPU bubble.

The build in Amazon, Booking, Costco and Walmart suggests they also expect the consumer to keep spending into digital and travel channels, particularly where scale and data confer pricing power. Meanwhile, modest adds to UnitedHealth, AbbVie, Merck and the big U.S. banks say they still want ballast from cash‑generative, regulated oligopolies.

The introduction of a real S&P 500 and AGG sleeve is the quiet but telling change. It signals a willingness to trade some upside torque for more stable multi‑year compounding after a 92.22% three‑year cumulative run, without walking away from the core AI story that got them here.

If the next phase of markets is choppier — higher‑for‑longer rates, tighter liquidity, episodic AI corrections — this book is designed to keep Russell participating in the trend while avoiding being held hostage by any single chip, fab, or datapoint. Expect further intra‑tech rotations, not a wholesale exit from growth, as they continue to migrate capital toward the less‑crowded layers of the compute stack.