BLACKHILL CAPITAL INC

BlackHill Capital's Q1 2026 13F is a $1.94B, 49-position portfolio defined by one extraordinary structural feature: Williams-Sonoma Inc accounts for 72.1% of total AUM ($1.40B on 7.68M shares, up from 70.7% in Q4), making it by far the most concentrated single-issuer exposure in the 13F-HR dataset among funds with meaningful diversification elsewhere. The remaining 28% of AUM is spread across 48 positions in healthcare (Eli Lilly, AbbVie, Abbott, Merck, Bristol Myers, J&J, Zoetis, Zimmer, Pfizer, Elanco), technology (Apple, Microsoft, NVIDIA, Alphabet A+C, F5, Magnite), utilities (Energy Transfer, Essential Utilities, American States Water, American Water Works, Consolidated Edison, Middlesex Water, California Water), consumer defensive (Procter & Gamble, Hershey, Tootsie Roll, Philip Morris), communication services (Disney, Netflix), financial services (Berkshire A+B, Mastercard, Weyerhaeuser, Rayonier, PotlatchDeltic), industrials (Caterpillar, Norfolk Southern), basic materials (Kimberly-Clark), energy (Chevron), and 3 ETFs (SPY, MDY, IWM). The quarter's 50 total changes across 49 positions is relatively high churn driven by a single-file rotation: the manager cut its largest healthcare-and-tech names (Lilly -$22.8M in value despite flat shares, Caterpillar -$0.8M value but -500 shares, Apple -$4.8M value, Bristol Myers -$1.6M value) while increasing Energy Transfer (+$4.0M, +3.4% shares), AbbVie (+$762K, +6.5% shares), and Rayonier (+$311K, +170.8% shares from a 9,093-share base — a new-conviction opening or massive scale-up) and selling one position outright: PotlatchDeltic (-$340K, sold completely). A 77.25 whaleScore on $1.94B reflects the extreme Williams-Sonoma concentration: removing WSM's $1.40B from the AUM calculation leaves a $538M 48-position portfolio that would score significantly lower. The fund's identity is best understood as a Williams-Sonoma-concentrated activist or long-term-quality holder with a diversified tail of mega-cap healthcare, technology, and dividend-paying utility names — the Q1 deltas are minor adjustments within that structure rather than a strategic repositioning. The Williams-Sonoma concentration may reflect a corporate-governance or activist campaign (Williams-Sonoma has been a known activist target) or a long-term-quality-compounding thesis: home-goods retail benefits from housing turnover, renovation spending, and the wealth-effect of US consumer balance sheets. The 49-position structure with 42 unchanged holdings is consistent with a buy-and-hold quality portfolio that rarely trades; the 8 changed positions in Q1 represent the most active quarter in recent history.

BlackHill Capital Inc | CIK 0000872162 | 13F-HR Q1 2026 | 49 positions | $1.94B AUM