RBO & CO LLC

The exit from Heineken Holdings — a $9.3M position entirely liquidated — removes the last meaningful non-U.S. consumer cyclical exposure, while the LyondellBasell sale clears the remaining basic-materials footprint. What remains is a book concentrated in healthcare (~27% of holdings), consumer defensive (~22%), and financial services (~18%) with meaningful weights in cyclical hospitality names (Wyndham Hotels, Live Nation) that look out of place against the otherwise defensive tilt. These may be opportunistic special-situation holdings rather than core positions, but they add an underdiscussed volatility vector: a consumer-discretionary drawdown would land against an otherwise low-beta book.

Look at the top-10 concentration. JNJ, ABBV, MCD, BRK/B, PM, PEP, Wyndham, Abbott, JPM and CIE Regroupement together represent roughly 54% of the portfolio. That level of clustering in quality compounders and dividend aristocrats suggests the manager is running a low-turnover, high-conviction style — the 29 decreased positions this quarter reinforce that; this is not a book that rotates frequently. The four new positions (Kimberly-Clark and Vanguard Short-Term Treasury ETF) add to the cash-management and essential-goods bias without disrupting the top holdings. For a reader trying to read RBO's mandate from its filings, the message is consistent: durable cash flows, pricing power, and balance-sheet strength over growth at any price.