Kedalion Capital Q1 2026: $3.5B Almost Entirely in IVV + SPYM

Kedalion Capital Management LLP filed a Q1 2026 Form 13F-HR reporting $3.48 billion in US-listed equity holdings concentrated in just 3 ETF positions. The book composition is unmistakable: iShares Core S&P 500 ETF (IVV) at 56.89% portfolio, SPDR Portfolio S&P 500 ETF (SPYM) at 39.32%, iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 3.79%. Combined IVV + SPYM exposure: 96.21% of total AUM. This is the cleanest single-strategy S&P 500 ETF-tracking 13F we track at $3+ billion scale.

Kedalion's structure is the textbook expression of a pure-beta institutional mandate — clients want S&P 500 exposure delivered through low-cost ETF building blocks, with a small high-yield sleeve for fixed-income overlay. The structure is similar in shape to Cambridge Associates' OCIO 13F (also entirely ETF-based) but even more concentrated: Cambridge holds 25 ETFs across multiple asset classes; Kedalion holds essentially 3 ETFs.

The book at a glance

$3.48 billion total AUM. 3 meaningful positions in the top tier (plus a long tail of small additional ETF positions). WhaleScore 79.00 — placing Kedalion in the elite smart-money tier paradoxically high for a pure-beta strategy because the WhaleScore methodology rewards concentration and stability.

The IVV + SPYM dual-ETF allocation

The combined 96.21% in S&P 500 ETFs is notable. Most pure-beta strategies use a single S&P 500 ETF (typically Vanguard's VOO, iShares' IVV, or SPDR's SPY for liquidity). Kedalion splits its allocation across IVV and SPYM, which suggests:

1. Tax-lot diversification. Holding two separate S&P 500 ETFs allows tax-loss harvesting between positions during market drawdowns without violating wash-sale rules. The strategy creates one substitutable alternative for each side.
2. Cost-tier optimization. IVV's expense ratio (0.03%) and SPYM's expense ratio (0.02%) are nearly identical. The split likely reflects client account-level diversification across multiple ETF providers.
3. Liquidity management. Splitting trades across two ETFs reduces market-impact during large rebalancing operations.

The HYG fixed-income sleeve

The 3.79% allocation to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) provides a small fixed-income overlay. The position is too small to be a meaningful asset-allocation framework but provides:

• Modest fixed-income exposure for clients requiring cross-asset diversification within a primarily-equity mandate.
• Yield enhancement during equity-market drawdowns (high-yield bonds correlate imperfectly with equity).
• Tactical rebalancing flexibility — the HYG sleeve can absorb capital flows without forcing immediate equity rebalancing.

What this structure tells institutional readers

Three observations:

1. Kedalion is a pure-beta wealth manager. The 13F structure reflects client mandates for S&P 500-tracking exposure delivered through low-cost ETFs. There is no individual stock-picking discretion.
2. The HYG sleeve indicates RIA-style client base. Pure-passive mutual funds would not deploy 3.79% to high-yield credit. The position suggests Kedalion serves wealth-management clients seeking modest income overlay.
3. The dual S&P 500 ETF allocation reflects sophisticated tax-and-rebalancing operations. Single-ETF allocations are simpler; the dual-ETF approach indicates client account-level tax-loss harvesting and rebalancing-flexibility considerations.

The top 3 vs the rest

Top 3 absorbs 99.99% of AUM. The remaining ~0.01% is rounding and tail positions. Kedalion is structurally not a diversified active manager — it is a pure-beta wealth-management vehicle.

AUM trajectory

Kedalion's reported 13F AUM reflects steady-state operation of a wealth-management RIA. The position structure is stable across quarters; AUM grows with client inflows and market beta exposure.

What's notably absent

Four structural absences:

1. No individual stocks. Zero discretionary single-name positions. The mandate is purely ETF-based.
2. No alternatives or commodities. No gold ETFs, no private equity wrappers, no commodity exposure.
3. No international equity. Beyond the modest HYG allocation, the book is essentially US-large-cap-only.
4. No tactical positioning. The 96%+ S&P 500 allocation persists regardless of macro views — Kedalion does not run discretionary tactical adjustments.

What to track

1. Kedalion AUM growth. The 13F AUM trajectory signals wealth-management client inflows and outflows.
2. HYG allocation changes. Any meaningful shift in the small fixed-income sleeve would signal Kedalion's client-mandate evolution.
3. Q2 2026 13F (due August 14, 2026). Track via the institutional signals feed.

Kedalion Capital's Q1 2026 13F is one of the cleanest pure-beta S&P 500 ETF-tracking 13Fs at scale in the US institutional universe. For more on reading ETF-based wealth-management and OCIO structures, see our OCIO 13F reading guide.

Source: SEC Form 13F-HR filed by Kedalion Capital Management LLP (CIK 0002041209) for the period ending 2026-03-31; available via EDGAR — Kedalion Capital filer index.