--- title: "Confluence Q1 2026: A Dividend Book With Cash on Top" type: research slug: confluence-q1-2026-defensive-value-tbill-cash-sleeve canonical_url: https://13finsight.com/research/confluence-q1-2026-defensive-value-tbill-cash-sleeve published_at: 2026-05-23T17:59:15.048Z updated_at: 2026-05-23T17:59:17.766Z author: Marcus Chen author_title: Senior Market Analyst author_url: https://13finsight.com/authors/marcus-chen word_count: 674 locale: en source: 13F Insight --- # Confluence Q1 2026: A Dividend Book With Cash on Top > Confluence Investment Management's largest holding is a Treasury-bill ETF, atop a broad book of dividend payers - Lockheed, Chevron, Hershey - a cautious, income-focused portfolio. Confluence Investment Management runs a broad, dividend-and-value-oriented book, and the most telling feature of its first-quarter 2026 filing sits right at the top: its largest holding is not a stock but a Treasury-bill ETF. A short-term government-bond fund leading the portfolio is a clear statement of caution — a manager parking cash in risk-free yield rather than chasing the next equity. Beneath it sits a diversified roster of quality dividend payers across defense, energy, industrials, and consumer staples. The reported value was roughly flat at $6.44 billion across 283 positions. This is a portfolio built for income and resilience rather than growth. The combination of a meaningful cash-equivalent position and a tail of steady dividend names reads as a manager comfortable holding dry powder while owning durable, cash-generative businesses. Cash at the top The iShares 0-3 Month Treasury Bond ETF is the largest position at $176.5 million (2.74%), though it was trimmed 16% — still a notable cash-equivalent holding for an equity manager to carry as its top line. Holding T-bills in size signals that Confluence would rather earn risk-free yield than be fully invested, a defensive posture in a market dominated by all-in equity bets. The equity holdings beneath it are classic dividend-and-quality names. Lockheed Martin (defense), Chevron (energy), Snap-on (tools), Hershey (consumer staples), and utility WEC Energy anchor the top tier, most held flat or lightly trimmed. Analog Devices provides a quality-semiconductor touch. These are businesses chosen for reliable cash flow and dividends rather than momentum. A broad, defensive book Confluence runs a diversified portfolio rather than a concentrated one. With 283 positions and no holding above about 2.7%, the book is spread widely across sectors, with a clear lean toward income and stability. The light trimming across many top names — Analog Devices down 8%, Lockheed down 5%, Snap-on down 7%, WEC down 7% — paired with the T-bill position suggests a manager modestly de-risking and keeping cash available. There is no aggressive rotation here; the picture is one of caution and patience, a value-and-income manager content to wait with dry powder while collecting dividends on a broad, quality book. A stable book Confluence's reported value has been steady, aside from one anomalous quarter. The reported 13F value has held around $6.5 billion to $7.5 billion over most of the past two years, with a single reading near $2.59 billion that almost certainly reflects an incomplete filing rather than a real swing. Adjusting for that artifact, the book has been remarkably stable, ending the latest quarter at $6.44 billion with the position count in the high 200s — consistent with a diversified, lower-turnover income strategy. What it signals For investors who track institutional positioning, Confluence's first-quarter filing is a clean read on defensive, income-focused investing. The signal is the cash at the top: a manager holding a Treasury-bill ETF as its largest position, alongside a broad book of dividend payers, is choosing yield and resilience over growth. The actionable takeaway is the posture — when a value-and-income manager keeps meaningful dry powder in T-bills and lightly trims its equities, it is positioning cautiously, ready to deploy if better opportunities arise. FAQ Why is a Treasury-bill ETF Confluence's largest holding?The iShares 0-3 Month Treasury Bond ETF is a cash-equivalent position. Holding it as the top line signals a cautious posture — the manager would rather earn risk-free yield and keep dry powder than be fully invested in equities. What kind of stocks does Confluence hold?Quality dividend payers across sectors — defense (Lockheed Martin), energy (Chevron), tools (Snap-on), consumer staples (Hershey), and utilities (WEC Energy) — chosen for reliable cash flow rather than growth. How diversified is Confluence's book?Very. It holds 283 positions with no name above about 2.7%, a broad income-and-value portfolio spread across sectors rather than concentrated in a few bets. Why did Confluence's reported value once drop to $2.6 billion?That single reading almost certainly reflects an incomplete 13F filing rather than a real decline. Adjusting for it, the book has been stable in the $6.5 billion to $7.5 billion range. ## FAQ ### Why is a Treasury-bill ETF Confluence's largest holding? The iShares 0-3 Month Treasury Bond ETF is a cash-equivalent position. Holding it as the top line signals a cautious posture - the manager would rather earn risk-free yield and keep dry powder than be fully invested in equities. ### What kind of stocks does Confluence hold? Quality dividend payers across sectors - defense (Lockheed Martin), energy (Chevron), tools (Snap-on), consumer staples (Hershey), and utilities (WEC Energy) - chosen for reliable cash flow rather than growth. ### How diversified is Confluence's book? Very. It holds 283 positions with no name above about 2.7%, a broad income-and-value portfolio spread across sectors rather than concentrated in a few bets. ### Why did Confluence's reported value once drop to $2.6 billion? That single reading almost certainly reflects an incomplete 13F filing rather than a real decline. Adjusting for it, the book has been stable in the $6.5 billion to $7.5 billion range. --- Source: 13F Insight — https://13finsight.com/research/confluence-q1-2026-defensive-value-tbill-cash-sleeve Author: Marcus Chen — https://13finsight.com/authors/marcus-chen Last updated: 2026-05-23T17:59:17.766Z