Durable Capital Partners Portfolio: Focus on Industrials and Tech Giants

Introduction

This analysis examines the investment strategy and holdings of Henry Ellenbogen, managing Durable Capital Partners, as of December 31, 2025. The portfolio demonstrates a clear preference for specific sectors and individual stocks, highlighting key themes and recent shifts.

Top Holdings by Value

The largest positions in the portfolio, representing significant allocations, are:

• RBC Bearings Inc. (RBC): Holds approximately 9.95% of the portfolio, valued at $1.05 billion.
• DoorDash Inc. (DASH): Constitutes 7.67% of the portfolio, with a value of $810.5 million.
• Coupaang Inc. (CPNG): Accounts for 5.46% of the portfolio, worth $576.8 million.
• APG Inc. (APG): Represents 5.44% of the portfolio, valued at $574.6 million.
• XPO Inc. (XPO): Holds 5.08% of the portfolio, worth $536.7 million.

Sector Concentration

The portfolio exhibits a strong concentration in the Industrials sector, combining several holdings:

• RBC Bearings Inc. (RBC): Industrials, 9.95%
• APG Inc. (APG): Industrials, 5.44%
• XPO Inc. (XPO): Industrials, 5.08%
• Colliers International Group Inc. (CIGI): Real Estate, 4.69%
• Ferguson Enterprises Inc. (FERG): Industrials, 3.29%

Combined, these Industrials holdings represent approximately 20.22% of the portfolio. Technology is another significant sector, represented by Shift4 Payments Inc. (FOUR) at 3.94%. Communication Services holds DoorDash Inc. (DASH) at 7.67%, and Consumer Cyclical holds several key positions including DoorDash (7.67%), Mercadolibre Inc. (MELI) (5.87%), and Coupaang Inc. (CPNG) (5.46%).

Recent Changes in Holdings

Several holdings show significant changes from the previous period:

• DoorDash Inc. (DASH): Experienced a substantial increase of 1,140.8% in its share count and a corresponding increase in its portfolio allocation.
• Shift4 Payments Inc. (FOUR): Showed a strong increase of 17.43% in shares.
• Ferguson Enterprises Inc. (FERG): Increased its share count by 43.38%.
• Conversely, RBC Bearings Inc. (RBC) saw a decrease of 6.99% in its share count, XPO Inc. (XPO) decreased by 8.82%, and Coupaang Inc. (CPNG) decreased slightly by 1.53%.

Investment Strategy Analysis

The portfolio's strategy appears heavily tilted towards specific sectors and companies exhibiting strong growth potential or exposure to cyclical economic conditions. The significant allocation to Industrials suggests confidence in the performance of companies within this sector, potentially benefiting from global trade, logistics, and manufacturing trends. The substantial position in DoorDash points towards an appetite for high-growth e-commerce and delivery services companies. The inclusion of Consumer Cyclical stocks like DoorDash, Mercadolibre, and Coupaang further emphasizes exposure to companies that typically perform well during economic recovery phases. Technology, represented by Shift4 Payments, indicates a continued interest in digital transformation and fintech services. The overall strategy seems focused on concentration within select high-growth and cyclical sectors, favoring companies with demonstrated expansion capabilities or exposure to favorable economic cycles.

The changes in holdings, particularly the large inflows into DoorDash and Shift4 Payments, suggest a dynamic approach where the manager actively adjusts positions based on performance and market opportunities. However, the decreases in positions like RBC Bearings and XPO indicate a willingness to rebalance or reassess holdings as well. The portfolio's structure, with a few large positions combined with others, points towards a strategy that balances diversification within concentrated sectors with targeted bets on specific high-potential companies.