HOWARD FINANCIAL SERVICES, LTD.

Top-10 concentration is high: the ten largest positions account for $436.70M, or 51.1% of the total portfolio. This indicates a core set of large holdings (mostly ETFs) that drive portfolio risk/return. Activity during the quarter was active: 22 new positions, 22 liquidations, 21 increased stakes and 7 reductions — consistent with a material reallocation and/or net inflows during the quarter.

Key Holdings

• QUAL (iShares quality ETF): $100.85M (11.79% of portfolio). This is the single largest line and by itself exceeds 10% of assets, making it the primary driver of factor/stock exposures.
• SCHD (Schwab U.S. Dividend Equity ETF): $53.64M (6.27%). A large new entry focused on dividend-paying U.S. large caps.
• VIG (Vanguard Dividend Appreciation ETF): $43.04M (5.03%). Another substantial dividend/growth-oriented ETF.
• SPGP, RSP, GTO, DGRW, PGIM, TOTL, SCHG: Together with QUAL/SCHD/VIG, these factor/strategic ETFs constitute the core. The top 10 holdings are overwhelmingly ETF-based (9 of top 10 are ETFs).
• Largest single-stock line among equities is AAPL at $35.42M (4.14%). Other single-stock exposures are relatively small as line items (NVDA 1.71%, MSFT 1.30%, BRK/B 0.86%, AMZN 0.80%). Implication: the portfolio’s market and sector exposures are driven primarily through ETFs and factor funds rather than concentrated individual-stock bets—except for a notable Apple position.