THOMPSON INVESTMENT MANAGEMENT, INC.

Thompson Investment Management’s $773M portfolio underwent a quiet but telling sector rotation in Q1 2026: the manager slashed its Warner Bros Discovery stake by nearly half, trimmed speculative technology holdings, and redeployed into consumer defensive names and select healthcare. WBD was cut 48.8% in value, shedding roughly $16.8M and falling from the second-largest holding to fourth. Keysight Technologies was reduced 45.6%, and Alphabet trimmed 2.3% despite value rising to $41.2M on share-price appreciation. The proceeds purchased five new positions: Target ($10.8M), Procter & Gamble ($9.2M), Chewy ($7.2M), Intuit ($7.2M), FedEx ($7.1M), and Bristol-Myers Squibb ($6.4M). These are not growth-at-any-price names; they are cash-generative, domestically-oriented businesses whose revenues are less sensitive to global demand. The fund also added modestly to energy—Exxon and Chevron both saw share counts inch down while values rose—suggesting the manager is letting winners run there rather than adding aggressively. The portfolio’s sector tilt shows heavy diversification across 501 positions with a bias toward technology and financial services, but the quarter’s activity reads as a defensive rebalancing: reduce exposure to legacy media and speculative tech, increase exposure to consumer staples, shipping, and pharma.