Kayne Anderson Rudnick Q1 2026: A Non-Megacap Book

Kayne Anderson Rudnick reported a $34.05B U.S. equity book for the quarter ended March 31, 2026 (Form 13F-HR, accession 0001398344-26-009183, filed 2026-05-14), and it stands out for what it does not own. There is no Nvidia, no Apple, no Microsoft at the top of the book. Instead, the quality-focused manager holds a diversified roster of high-return niche businesses — fintech processor Jack Henry (JKHY), insurer Primerica (PRI), equipment maker Toro (TTC), and Teledyne (TDY) — none of them larger than about 2.5% of the portfolio.

That positioning is the story. While the megacap-led market kept setting records, Kayne Anderson Rudnick's small- and mid-cap quality book has seen its reported value slide for several consecutive quarters, from a peak above $45B in late 2024 to $34.05B now. With most positions held roughly flat, the decline reflects the persistent underperformance of smaller, non-megacap stocks rather than the manager selling out.

For 13F readers, Kayne Anderson Rudnick is a useful counterweight to the megacap concentration that dominates most large filings — a look at where a disciplined quality manager invests when it deliberately avoids the giants.

A book of quality compounders

Kayne Anderson Rudnick's holdings read like a checklist of high-return, defensible smaller businesses. After Jack Henry, Primerica, and Toro come Teledyne, industrial Regal Rexnord (RBC), Interactive Brokers (IBKR), building-products maker Simpson Manufacturing (SSD), and Watts Water (WTS).

The portfolio is highly diversified — its ten largest positions make up only about 20% of the book, with roughly 80% spread across a long tail. The unifying thread is not size or sector but quality: businesses with strong returns on capital, durable niches, and conservative balance sheets. It is a recognizably different universe from the megacap-tech books that lead most 13F coverage.

Holding the line as small-caps lag

Most of Kayne Anderson Rudnick's largest positions were held roughly flat, with only modest trims to names like Teledyne (-10%) and Interactive Brokers (-11%). The standout addition was Pool Corp (POOL), the swimming-pool products distributor, where the firm raised its share count by 62%.

The steady value decline alongside flat positions is the signature of a style headwind, not a change of heart: when small- and mid-cap quality names lag a market led by a handful of megacaps, a manager that stays disciplined will see its reported value fall even as it holds its book. The Pool Corp add suggests the firm is still finding individual names to lean into.

What it means for 13F readers

Kayne Anderson Rudnick offers a window into quality investing outside the megacaps. Its holdings — niche industrials, specialty financials, and fintech infrastructure — are the kind of durable businesses that rarely make headlines but anchor a quality strategy. The pattern to watch is whether the multi-quarter value slide stabilizes as small- and mid-cap stocks find footing. Track the firm's quarter-over-quarter holdings on the Kayne Anderson Rudnick filer page.

FAQ

What is Kayne Anderson Rudnick?

Kayne Anderson Rudnick is a quality-focused investment manager specializing in high-return, durable small- and mid-cap businesses. It reported a $34.05B U.S. equity 13F book for the quarter ended March 31, 2026.

What are Kayne Anderson Rudnick's largest holdings?

Its five largest positions are Jack Henry (2.54%), Primerica (2.26%), Toro (2.18%), Teledyne (2.13%), and Regal Rexnord (2.11%) — quality niche businesses rather than megacap tech.

Why has Kayne Anderson Rudnick's 13F value declined?

The reported value fell to $34.05B from a peak above $45B in late 2024. With most positions held roughly flat, the decline reflects the underperformance of small- and mid-cap stocks relative to the megacap-led market.

What did Kayne Anderson Rudnick buy in Q1 2026?

The standout move was a 62% increase in Pool Corp (POOL), the swimming-pool products distributor, while most other top positions were held roughly flat.