Vanguard Capital Management 13F Portfolio

The biggest capital redeployment this quarter says more than the tiny share‑count moves in the megacaps. The standout is a brand‑new RTX position at 0.36%, worth $16.7B, plus an aggressive scale‑up in Marvell — a 48.1% jump in shares and a $5.6B dollar add.

These aren’t random adds; they extend the core AI thesis down the stack and out into the real economy. RTX is a straight bet that aerospace and defense demand — including the electronics and secure communications underpinning modern warfare — will sustain elevated backlogs and pricing power. The 17.0% gain vs. cost suggests the manager was willing to buy upside momentum rather than wait for cheaper entry.

Marvell is the more important tell. With its 0.37% weight, 78.1% gain vs. cost, and one of the largest notional increases in the book, Vanguard Capital is explicitly backing data‑center networking and custom silicon as critical bottlenecks in AI build‑outs.

Elsewhere, conviction is nudged higher in the usual suspects — GOOGL/GOOG, AAPL, MSFT, AMZN, and META all see low‑single‑digit percentage share adds in dollar‑heavy sizes. And under the surface, the fund is quietly leaning into second‑tier semis and infrastructure plays like INTC, TXN, AMAT, LRCX, KLAC and PANW, reinforcing the idea that the AI theme is about systems and bandwidth, not just GPUs.

On the other side of the ledger, this is not a wholesale de‑risking; it’s surgical harvesting in mature financials and a few cyclicals to pay for higher‑conviction growth. JPMorgan is the clearest funding source: the stake is still a hefty 1.13%, but shares are down 2.2% this quarter and about $1.21B in notional.

Visa and Mastercard — mis‑tagged here as "Real Estate" but economically global payment rails — are both modestly trimmed, with Visa’s position cut by 0.8% in share count and Mastercard’s by 0.4%. Those are small moves, but at $36.4B and $26.8B, respectively, they free non‑trivial capital from businesses that are solid compounders yet offer less direct torque to the AI or defense narratives.

Within Industrials, Caterpillar sees a 0.5% share reduction and roughly $167M in capital pulled out even as RTX is introduced. That looks like a classic cycle trade: lighten heavy equipment late in the capex upswing, redirect to long‑cycle aerospace.

Energy is on a short leash rather than in the penalty box. Exxon is trimmed by 0.2% and about $63.8M despite still sitting nearly 9.4% above cost, while Chevron actually sees a small add. Taken together, the pattern reads as incremental rotation away from rate‑sensitive and commodity‑linked carry into higher‑growth, secular stories rather than a macro call on recession.

At the sector level, the story is one of reinforcement, not reinvention. Technology remains a towering 62.41% of the top‑50 book, barely changed from 62.63%, but the composition inside that block is inching toward semis, networking, and security rather than just platform megacaps.

Alphabet, Microsoft, Apple, Amazon, and Meta all enjoyed additional capital, but so did Micron, AMD, Intel, Marvell, Texas Instruments, and equipment makers like Applied Materials, Lam Research, and KLA. That’s a broad, deliberate web around the full AI and cloud hardware stack — from memory and CPUs to lithography, inspection, and network silicon.

The one sector that is visibly expanding is Industrials, up from 4.19% to 4.78% on the back of RTX’s debut and a maintained Tesla position at 1.65%. This is the “real world” side of the AI bet: aerospace, electric vehicles, and advanced manufacturing.

Conversely, Finance edges down from 4.95% to 4.86% with trims in JPM, Wells Fargo, and a flat‑to‑down Morgan Stanley, and Real‑world Consumer exposure (Discretionary plus Staples) is essentially unchanged. Healthcare’s 7.47% weight, anchored by Eli Lilly, J&J, AbbVie, UNH, Merck, and Philip Morris, is being managed as a defensive growth ballast rather than a new engine of risk.

Taken together, the quarter paints a manager convinced that the AI build‑out is both durable and still mispriced in the broader indices. By adding to already‑profitable names like Nvidia, AMD, Micron and Alphabet — and then layering in Marvell and RTX — Vanguard Capital is effectively saying the capital‑expenditure supercycle in compute, networking, and aerospace has years left.

The way they fund these moves is equally telling. They’re not cutting the core quality franchises; they’re shaving around the edges of banks, card networks, and heavy machinery where upside is more tethered to rates and old‑fashioned GDP than to secular technology demand.

Healthcare looks set to remain a permanent stabilizer. Slight increases across Lilly, J&J, AbbVie, UNH, Merck, and Philip Morris, all sitting comfortably above their cost bases, suggest the portfolio is being built to weather volatility in AI multiples without sacrificing long‑term growth.

Going forward, expect further fine‑tuning beneath a largely unchanged headline: tech above 60%, mega‑cap platforms entrenched in the top slots, and incremental capital funneled into the less glamorous but higher‑incremental‑return parts of the AI stack. If anything shifts meaningfully, the leading candidates are more capital into industrial AI beneficiaries and data‑center infrastructure, funded by continued, modest harvesting in traditional financials and cyclicals.