AI Analysis · Q1 2026

Hill City Capital's Q1 2026 13F is a $2.80B, 23-position infrastructure-and-construction-focused fund whose AUM grew from $2.65B in Q4 2025 to $2.80B in Q1 2026 (+$150M, +5.6%) — modest growth that the manager deployed into a coordinated increase across the portfolio's industrial-and-energy-transition core. The headline trade is a $116.5M increase in First Solar ($429.5M, 15.3%, -$116.5M in value but +4.2% shares — the value decline is mark-to-market from Q4's higher price; the share increase is a genuine add of 87,150 shares) — the portfolio's second-largest position and its technology-and-energy-transition anchor. The portfolio's largest position is MasTec ($693.3M, 24.8%, flat) — an infrastructure-and-construction contractor with exposure to electric utilities, telecom, and renewable-energy buildout. The third and fourth largest positions are Dycom Industries ($342.1M, 12.2%, flat) — a telecom-and-electric utility infrastructure contractor — and International Paper ($149.9M, 5.4%, +$54.2M, +72.8% shares from a 2.4M-share base) — a paper-and-packaging-and-forest products name that benefits from the same construction-and-logistics theme. The quarter's 27 total changes (4 new, 4 sold, 7 increased, 2 decreased) is moderate churn with a clear thematic coherence: the manager increased positions across the industrial-and-construction supply chain (International Paper +72.8% shares, Advanced Drain +131.3%, Core & Main +8.9%, James Hardie +9.8%, Boeing +6.4%, CRH +2.9%) while reducing Enersys (-59.4% shares, -$35.6M) and Trex (-0.4% shares, essentially flat) and selling 3M, Builders FirstSource, SiteOne Landscape, and Sabre to fund the reallocation. Four new opens — STMicroelectronics ($79.5M, semiconductors), EquipmentShare ($15.3M, construction-equipment-technology), Wolfspeed ($14.4M, wide-bandgap semiconductors), and Solv Energy ($7.5M, solar-and-energy-storage) — introduce a semiconductor-and-technology layer to the construction core. At a 77.25 whaleScore on $2.80B, this is best read as a thematic infrastructure fund doubling down on its construction-and-energy-transition thesis while modestly expanding into the semiconductor-and-technology suppliers that underpin the buildout.

The two anchor positions frame the portfolio's identity. MasTec ($693.3M, 24.8%, 2.16M shares, essentially flat) — a telecom-and-electric-utility infrastructure contractor — is the portfolio's largest holding and has been held at a steady weight through multiple quarters. MasTec's business (building and maintaining cell towers, fiber-optic networks, electric-power distribution, and renewable-energy transmission infrastructure) is the direct beneficiary of the $1.2T IIJA infrastructure spending and the CHIPS Act's semiconductor-fabrication buildout; every data center, every battery factory, every transmission-line upgrade requires MasTec's contractor network. Dycom Industries ($342.1M, 12.2%, 1.01M shares, essentially flat) — a telecom-and-utility infrastructure contractor specializing in cable, fiber, and electric-power — provides complementary exposure to the same theme at a smaller-and-more-telecom-focused scale. Together MasTec and Dycom at 37.0% of AUM define the portfolio's core thesis: US infrastructure spending is a multi-year cycle and these two contractors are the most direct listed-stock beneficiaries.

The First Solar position is the portfolio's technology-and-energy-transition anchor. First Solar Inc ($429.5M, 15.3%, 2.18M shares, +87,150 shares, +4.2%) — a US-based thin-film solar-panel manufacturer with a 25-year track record and a manufacturing footprint in Ohio and Alabama — was the portfolio's largest position in Q4 2025 at $546.1M (20.6%) and was reduced in value by $116.5M in Q1. The critical distinction: the share count INCREASED (from 2.09M to 2.18M), while the value DECREASED. This means the manager ACTIVELY ADDED 87,150 shares while the stock price fell — buying into weakness rather than selling into it. The $116.5M value decline is mark-to-market from First Solar's stock-price decline in Q1; the 4.2% share increase is a genuine conviction add. First Solar is the portfolio's only pure-play renewable-energy name and benefits from the IRA's solar-tax-credit extension and from US-on-shoring-of-solar-manufacturing policy. The manager's willingness to add shares into a declining stock signals a long-term view that First Solar's earnings power at current panel prices justifies the position.

Quarter at a glance — Q1 2026

Top 10 holdings

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