The anchor of the new book is Eli Lilly (LLY), initiated here at $8.6 million. LLY's weight inside a $126 million portfolio is 6.8 percent — a high-conviction bet on the GLP-1 franchise and the broader obesity-and-diabetes pipeline. The simultaneous Merck cut tells you the manager is not running a generic healthcare sleeve: it is specifically favoring Lilly over Merck, choosing the company with an approved, revenue-generating GLP-1 franchise over the legacy pharma name facing declining revenue and uncertain pipeline. Church & Dwight (CHD) and Johnson & Johnson also initiated in the March book, adding consumer-health and diversified-healthcare exposure that complements rather than duplicates the LLY concentration.
The financials layer is the second anchor and has two distinct parts. Citigroup — at $95 million and 16.9 percent of gross assets — is the single-largest position in the book. It was reduced 4 percent in shares but grew in absolute value (from $102M to $95M), a mechanical consequence of Citi's share-price movement during the quarter. The second layer of U.S. financials — JPMorgan ($5.6M), Aflac ($2.2M), PNC ($774K), SEI Investments ($518K), Bank of America ($461K), Simon Property Group ($1.3M), and Blackstone ($264K) — is modest in size and reads as a dividend-and-quality supplement rather than a sector-concentration bet. The third and most distinctive layer is the LATAM bank group: Grupo Financiero Galicia (GGAL, $2.1M), Banco Macro (BMA, $1.5M), BBVA Argentina (BBAR, $1.2M), and YPF (YPF, $1.2M). These four Argentine/Latin American financial and energy names together are roughly $6 million — small in absolute terms, but unusual in composition for a $126 million U.S.-domiciled fund. The presence of YPF alongside the Argentine banks suggests the manager views Argentina's post-Milei macro trajectory as a mispriced recovery story, and is taking exposure through both the banking system and the dominant energy company rather than through an Argentina-country ETF. That is an explicit country-bet via single names, a strategy that fits a concentrated value manager but would be anomalous in a diversified equity fund.