Capital International Investors' $638B Portfolio Puts Broadcom at #1 and Built a $2.5B Netflix Position in One Quarter

Most of the world's largest institutional investors lead their Q4 2025 portfolios with NVIDIA. Capital International Investors doesn't. Their $638 billion portfolio puts Broadcom (AVGO) at the top — $49.1 billion, 7.7% of the entire portfolio — making it the most concentrated mega-cap bet among top-20 filers.

But the headline number isn't the most interesting move in this filing. That would be the 710% increase in Netflix shares, the brand-new $3.4 billion position in TotalEnergies, and the complete exit from Disney. This is an active stock picker making big, directional calls.

TL;DR

• AUM: $638.0 billion across 454 holdings (up from $619.4B in Q3)
• Top holding: Broadcom at $49.1B (7.7%) — largest single-stock concentration among comparable filers
• Top-5 concentration: 24.1% — moderate for a 454-position portfolio
• Biggest build: Netflix shares up 710% (3.3M → 26.5M shares, now $2.5B)
• Biggest new position: TotalEnergies at $3.4B — a major European energy play
• New entry: Bank of America at $2.4B — financials conviction
• Complete exit: Disney ($590M position liquidated)
• Trimmed hard: Electronic Arts (-100%), Corteva (-93%), Datadog (-85%)
• 39 new positions opened, 33 completely exited — heavy portfolio turnover
• Whale Score: 76.00 — high-quality active manager

The Broadcom Conviction

Broadcom at 7.7% of a $638 billion portfolio is a statement. For comparison, Fidelity holds AVGO at roughly 3%, and JPMorgan Chase at about 2%. Capital International's position is more than double the typical mega-filer allocation.

The bet reflects a view that goes beyond the generic "AI infrastructure" thesis. Broadcom's custom AI chip business (XPU) is growing into direct competition with NVIDIA for hyperscaler workloads, while its VMware acquisition is generating the kind of recurring enterprise revenue that justifies a premium multiple. At $49.1 billion, this single position exceeds the total AUM of most hedge funds.

Microsoft sits at #2 ($39.5B, 6.2%), followed by Alphabet in both share classes — GOOG at $26.4B plus GOOGL at $11.0B, for a combined $37.4B (5.9%). This makes Alphabet effectively the #2 holding when share classes are combined, ahead of Apple at #4 ($19.5B) and NVIDIA at #5 ($19.4B).

The Netflix Build: From Watcher to All-In

The most dramatic single-quarter move: Netflix shares surged from 3.3 million to 26.5 million — a 710% increase. The position is now worth $2.5 billion.

This isn't a gradual accumulation. It's a conviction call made in a single quarter. Capital International went from a modest position to making Netflix one of its largest holdings, likely responding to the company's advertising tier momentum and continued subscriber growth. The timing coincides with Netflix reaching all-time high stock prices above $900.

Other massive builds in Q4:

Stock	Share Change	New Value	Signal
Public Storage	+821%	$1.07B	Real estate conviction in rising-rate environment
ServiceNow	+396%	$1.59B	Enterprise software / AI workflow play
Verisk Analytics	+1,201%	$0.73B	Data analytics — insurance and risk assessment
Keurig Dr Pepper	+1,987%	$0.47B	Consumer staples — from near-zero to meaningful position

New Positions: Energy, Banks, Industrials

Capital International opened 39 new positions in Q4 2025. The three largest reveal a shift toward value and cyclicals:

TotalEnergies ($3.4B) — The French energy giant, opened as the largest brand-new position. This is a European integrated oil major trading at roughly 7x earnings with a 5%+ dividend yield. It's a contrarian bet in a portfolio dominated by U.S. tech.

Bank of America ($2.4B) — A major new financials position. Combined with existing holdings in JPMorgan and other banks, this signals growing confidence in the interest rate environment for bank earnings.

Caterpillar ($1.2B) — The industrial bellwether, added during a period of infrastructure spending and reshoring investment. A bet on real-economy capex.

The Exits: Disney and Dayforce Lead the Cuts

The flip side of 39 new positions: 33 complete exits and several deep trims.

Dayforce ($1.3B exit) — The HR/payroll software company was the largest complete liquidation. Disney ($590M exit) — After holding through years of streaming losses, Capital International walked away entirely. Regeneron ($490M exit) — Exited the biotech after it traded near all-time highs.

Among existing positions, the trims were equally aggressive:

• Electronic Arts — Cut to near-zero (-100% shares)
• Corteva — Cut 93% of shares (agrochemical exit)
• Datadog — Cut 85% (monitoring software)
• Vistra Corp — Cut 82% (power utility)
• Merck — Cut 75% (pharmaceutical reduction)

The pattern: exiting or cutting companies that reached premium valuations or where the growth thesis has matured, while building in areas where Capital International sees mispriced value.

The Philip Morris Factor

Perhaps the most distinctive position in the top 10: Philip Morris International at $16.3 billion (2.5%). Most ESG-conscious institutional investors have reduced or eliminated tobacco exposure. Capital International holds it as a top-7 position.

The thesis isn't about cigarettes — it's about IQOS, Philip Morris's heated tobacco system, and ZYN nicotine pouches (via the Swedish Match acquisition). PMI's smokeless revenue is growing 20%+ annually. At 2.5% of portfolio, Capital International is betting this transition narrative will drive the stock regardless of broader sector stigma.

GE Aerospace at $12.9 billion (2.0%) rounds out the differentiated top 10 — a pure-play aerospace and defense name that most tech-heavy portfolios lack.

Portfolio Construction: Active, Not Indexed

With 454 holdings and 24.1% top-5 concentration, Capital International Investors sits in the “active manager” zone — concentrated enough to express views, diversified enough to manage risk. The Whale Score of 76.00 reflects this: high-quality, differentiated positioning.

The Q4 2025 turnover is notable: 39 opens + 33 exits = 72 position changes in a single quarter, affecting roughly 16% of the portfolio by count. This is an active shop that moves decisively.

Compare this to Dimensional Fund Advisors (13,709 positions, systematic factor investing) or Charles Schwab (retail wealth management). Capital International is neither — it's a conviction-driven stock picker operating at enormous scale, making $3.4B bets on French energy companies and 710% increases in Netflix in a single quarter.

What Would You Ask About This Portfolio?

Why is Broadcom #1 instead of NVIDIA?

Capital International appears to be making a differentiated call on AI infrastructure. While most filers lean heavily on NVIDIA's GPU dominance, the Broadcom bet targets custom AI chips (XPUs) and VMware's enterprise software recurring revenue — a more diversified AI exposure.

Is the Netflix build a momentum chase?

Possibly, but the scale suggests conviction, not FOMO. Going from 3.3M to 26.5M shares in one quarter required active accumulation over many trading days. This is a deliberate portfolio construction decision, likely backed by fundamental analysis of Netflix's advertising revenue trajectory.

Should I worry about the Disney exit?

A $638B filer exiting Disney entirely is a meaningful signal. But context matters: Capital International may have concluded that Disney's streaming path to profitability is priced in, not that the company is in trouble. The exit proceeds likely funded the new positions in TotalEnergies and Bank of America — a rotation from media to energy and financials.

What does the TotalEnergies position signal about energy?

Opening a $3.4B position in a European energy major suggests Capital International sees value outside the U.S. energy sector. TotalEnergies trades at a significant discount to U.S. peers like ExxonMobil and Chevron, with higher dividend yield and growing LNG exposure. It's a contrarian bet that European energy is undervalued.