--- title: "Kedalion Capital Q1 2026: $3.5B Almost Entirely in IVV + SPYM" type: research slug: kedalion-capital-q1-2026-pure-s-and-p-500-etf-mandate canonical_url: https://13finsight.com/research/kedalion-capital-q1-2026-pure-s-and-p-500-etf-mandate published_at: 2026-05-15T08:47:16.413Z updated_at: 2026-05-15T08:47:20.740Z author: Marcus Chen author_title: Senior Market Analyst author_url: https://13finsight.com/authors/marcus-chen word_count: 666 locale: en source: 13F Insight --- # Kedalion Capital Q1 2026: $3.5B Almost Entirely in IVV + SPYM > Kedalion Capital Management LLP's Q1 2026 13F holds $3.48 billion across just 3 ETF positions: IVV at 56.89%, SPYM at 39.32%, HYG at 3.79%. The book is essentially pure S&P 500 ETF tracking — the cleanest single-strategy beta-allocation 13F at scale. 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 allocationThe 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: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.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.Liquidity management. Splitting trades across two ETFs reduces market-impact during large rebalancing operations.The HYG fixed-income sleeveThe 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 readersThree observations: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.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.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 restTop 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 trajectoryKedalion'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 absentFour structural absences:No individual stocks. Zero discretionary single-name positions. The mandate is purely ETF-based.No alternatives or commodities. No gold ETFs, no private equity wrappers, no commodity exposure.No international equity. Beyond the modest HYG allocation, the book is essentially US-large-cap-only.No tactical positioning. The 96%+ S&P 500 allocation persists regardless of macro views — Kedalion does not run discretionary tactical adjustments.What to trackKedalion AUM growth. The 13F AUM trajectory signals wealth-management client inflows and outflows.HYG allocation changes. Any meaningful shift in the small fixed-income sleeve would signal Kedalion's client-mandate evolution.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. ## FAQ ### What is Kedalion Capital Management? Kedalion Capital Management LLP is a US-based wealth management firm with $3.48 billion in US-listed equity holdings as of Q1 2026. The firm operates a pure-beta investment strategy delivered through low-cost S&P 500 ETFs, with a small high-yield bond sleeve for fixed-income overlay. WhaleScore 79.00 reflects the concentration and stability of the strategy rather than active stock-picking conviction. ### Why does Kedalion hold IVV and SPYM together? Kedalion splits its 96.21% S&P 500 allocation across iShares Core S&P 500 ETF (IVV at 56.89%) and SPDR Portfolio S&P 500 ETF (SPYM at 39.32%). The dual-ETF approach enables tax-loss harvesting between positions during drawdowns without wash-sale rule violations, reflects client account-level diversification across ETF providers, and reduces market-impact during large rebalancing operations. The two ETFs have nearly identical expense ratios (0.03% and 0.02%). ### Why the 3.79% HYG allocation? The 3.79% allocation to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) provides a small fixed-income overlay for clients seeking modest cross-asset diversification within a primarily-equity mandate. The position is too small to be a meaningful asset-allocation framework but enables yield enhancement during equity-market drawdowns and tactical rebalancing flexibility without forcing immediate equity sales. ### Should I treat Kedalion as a discretionary stock-picker? No. Kedalion's 13F holds zero individual stocks. The mandate is purely ETF-based — clients want S&P 500-tracking exposure delivered through low-cost ETFs. Reading the position list as stock-picking signal would be a category error. The structure is similar to OCIO firms (Cambridge Associates) but more concentrated, with essentially 3 ETF positions versus Cambridge's 25 ETF positions across multiple asset classes. --- Source: 13F Insight — https://13finsight.com/research/kedalion-capital-q1-2026-pure-s-and-p-500-etf-mandate Author: Marcus Chen — https://13finsight.com/authors/marcus-chen Last updated: 2026-05-15T08:47:20.740Z