EDGEWOOD MANAGEMENT LLC

The sell list is dominated by the names that had driven the portfolio's 2024-2025 alpha. Eli Lilly ($637.8M, -$711.6M, -44.5% shares) — the fund's largest holding in Q4 2025 at $1.35B (6.4%) and a diabetes-and-obesity pharmaceutical that had been the single highest-conviction position in the portfolio — was reduced by more than half its share count and $711.6M in dollar terms. The reduction does not eliminate the position (Lilly remains the 11th-largest at $637.8M, 4.1%), but it brings it to a size where it is no longer the portfolio's anchor thesis. Blackstone ($289.1M, -$597.7M, -56.3%) — a private-equity-and-alternatives manager that had been the fourth-largest holding at $886.8M (4.2%) — was reduced by more than half. S&P Global ($279.0M, -$579.8M, -60.1%) — financial-data-and-analytics, previously the ninth-largest at $858.6M (4.1%) — suffered the largest percentage cut in the filing. Visa ($886.0M, -$402.1M, -20.2%) — payment networks, previously the fifth-largest at $1.29B (6.1%) — was trimmed by a fifth. Intuit ($499.1M, -$400.7M, -15.0%) — tax-and-small-business software, previously the 12th-largest at $899.8M (4.3%) — was reduced to just over half its prior size. The common thread across all six names is that they were high-quality, high-multiple, low-capital-intensive compounders that had delivered exceptional 2024-2025 returns and were trading at valuations that the manager now views as extended. The $4.1B in realized or marked-to-market capital from these six names alone represents the manager's liquidity source for the redeployment.

The buy list is more concentrated and more thematically coherent than the sell list, which is the more informative read. Netflix ($1.34B, +$209.7M, +15.5% shares) — streaming-and-content, the portfolio's single largest position at 8.7% of AUM — was the largest absolute increase. Netflix's business model (subscription video with improving margins from ad-tier and password-sharing monetization) has decoupled from the broader tech correction narrative and the manager is adding into what they view as a compounder with durable growth and expanding margins. Amphenol ($581.8M, +$159.9M, +47.5% shares) — connectors-and-sensors for AI data centers, aerospace, and automotive — was the second-largest increase in absolute terms and the largest percentage increase among meaningful positions. Amphenol is the plumbing of the AI buildout: every GPU, every server rack, every automotive sensor requires Amphenol connectors; the 47.5% share increase signals the manager is doubling down on the AI-infrastructure layer that is independent of which AI application wins. TransDigm ($715.7M, +34.1M fewer dollars but +6.2% shares) — aerospace-and-defense components — is another AI-and-defense infrastructure play: every commercial and military aircraft requires TransDigm's engine-and-structure components, and the share-count increase despite the dollar 'decrease' (which reflects mark-to-market from Q4's higher price) is a genuine conviction add. ServiceNow ($441.4M, -$30.1M but +37.2% shares) — enterprise workflow-and-ITSM software — was similarly added into on a share-count basis; the dollar decline is mark-to-market from Q4's higher multiple. Axon Enterprise ($861.5M, +$14.9M, +36.1% shares) — Taser-and-body-camera-and-software for law enforcement — is a niche monopolist with pricing power and recurring software revenue. Spotify ($621.0M, +$6.6M, +21.0% shares) — audio-streaming and podcasting — rounds out the adds as another subscription-software-and-content name with improving margins.