Kahn Brothers Portfolio: 42% in Financials, 25% in Healthcare
Thomas Graham's Kahn Brothers Group portfolio, as of December 31, 2025, shows a heavy concentration in Financial Services and Healthcare, with notable changes in holdings.
Introduction
The portfolio managed by Thomas Graham at Kahn Brothers Group, as of December 31, 2025, demonstrates a distinct investment strategy focused on select sectors and individual stocks. The holdings reveal a significant tilt towards Financial Services and Healthcare, with Citigroup Inc. (C) leading the portfolio by value at $1.02 billion, representing 18.11% of the total. This concentration is complemented by strong positions in Healthcare names like Bayer AG (BAYRY) and Merck & Co. (MRK).
Key Holdings and Sector Focus
The top holdings by value underscore the portfolio's concentration. Citigroup Inc. (C) stands as the largest holding, followed by Bayer AG Spons ADR (BAYRY) and Flagstar Financial, Inc. (NYCB). Notably, the portfolio includes exposure to technology (Alphabet Inc. Class C (GOOG)) and energy (BP PLC (BP)), alongside more traditional sectors like Industrials (Seaboard Corp (SEB)).
- Financial Services: Citigroup Inc. (C) dominates this sector allocation at 18.11%.
- Healthcare: Bayer AG (BAYRY) and Merck & Co. (MRK) together account for a substantial 20.95% allocation.
- Communication Services: Walt Disney (DIS) and Alphabet Inc. (GOOG) split this allocation, each contributing around 7.95% and 7.52% respectively.
- Energy: BP PLC (BP) holds 6.39%.
- Industrials: Seaboard Corp (SEB) represents 5.73%.
Strategic Shifts and Stability
The portfolio exhibits a mix of stability and strategic adjustments. Several holdings show slight decreases in shares, such as Citigroup (-0.04%), Bayer (-0.49%), and Flagstar Financial (-2.78%), while BP experienced a more significant reduction (-4.35%). Conversely, Alphabet Inc. (GOOG) saw a modest increase in shares (+0.52%), indicating a potential tilt towards growth within the Communication Services sector. The overall strategy appears focused on established large-cap names, particularly in Financials and Healthcare, with some diversification into consumer/media (Disney) and energy.
Conclusion
The Kahn Brothers Group portfolio, managed by Thomas Graham, maintains a clear bias towards Financial Services and Healthcare, which together constitute the largest part of the holdings. While Citigroup remains the dominant position, the inclusion of other significant names like Bayer, Merck, and Alphabet suggests a strategy that values both stability and exposure to high-growth areas. The modest changes in share counts observed across various holdings indicate an active but measured approach to portfolio management, focused on the long-term performance of these key assets.