Edgar Wachenheim's Portfolio: Heavy Consumer Focus with Notable Shifts
Greenhaven Associates' portfolio, as of March 31, 2026, shows a significant concentration in Consumer Cyclical stocks, particularly General Motors, with some holdings experiencing notable changes.
Portfolio Overview
The portfolio managed by Edgar Wachenheim III at Greenhaven Associates, valued at $5.98 billion as of March 31, 2026, exhibits a distinct investment strategy heavily weighted towards the Consumer Cyclical sector. This focus is evident through the significant allocation to companies like General Motors (GM) and several homebuilders.
Top Holdings Analysis
The largest position is General Motors Co (GM), holding approximately 15.37% of the portfolio value. Other major holdings include Lennar Corporation (LEN), Toll Brothers (TOL), PulteGroup (PHM), and D R Horton (DHI), all falling within the Consumer Cyclical sector. The portfolio also includes exposure to Industrials (Oshkosh Corp), Technology (Arrow Electronics, Avnet), Healthcare (Baxter International), and Energy (SLB).
- General Motors (GM): Largest holding, but saw a significant reduction in shares (-17.48%) and value during the period.
- Lennar (LEN): Second-largest, with a moderate increase in shares (+5.33%) and value.
- Baxter International (BAX): Showed a substantial increase in shares (+33.8%) and value, becoming a notable position despite a relatively small allocation.
- SLB: Energy sector exposure increased slightly (+0.08%) in terms of shares.
Concentration and Sector Focus
The portfolio demonstrates a clear concentration in the Consumer Cyclical sector, which includes the top five holdings by value. This sector allocation is significantly higher than typical diversified portfolios. The strategy appears focused on specific segments within cyclical consumer goods and services, including the auto industry (GM) and the homebuilding sector (LEN, TOL, PHM, DHI).
While the Consumer Cyclical focus is pronounced, the portfolio also includes significant exposure to other sectors: Technology (Arrow Electronics, Avnet), Healthcare (Baxter), and Industrials (Oshkosh). This diversification across different economic sensitivities is present, but the core theme remains the cyclical nature of these holdings.
Notable Changes and Risk Considerations
The period saw significant changes in the portfolio's composition. The largest holding, GM, experienced a substantial reduction in both shares and percentage allocation. Conversely, Lennar saw a modest increase, while Baxter International saw a dramatic share increase. These shifts indicate active management and potential adjustments based on company performance or strategic views.
The high concentration in Consumer Cyclical stocks, particularly in the homebuilding and automotive sectors, presents a significant risk profile. While these sectors can offer high returns during economic expansions, they are also vulnerable to downturns and interest rate hikes. The reduction in GM suggests a potential reassessment of the auto sector, while the strength in homebuilders might reflect confidence in the housing market. Investors should be aware of the elevated sector concentration and the specific changes in key holdings like GM and BAX.