Kahn Brothers Portfolio: Strategic Focus on Financials and Healthcare

Portfolio Overview

The portfolio managed by Kahn Brothers Group investor Thomas Graham, as of March 31, 2026, demonstrates a strategic focus on specific sectors and individual holdings. The analysis highlights concentration in Financial Services and Healthcare, with several holdings showing notable changes in their share positions from the previous period.

Top Holdings by Value

The largest position by value in the portfolio is Citigroup Inc (C), representing approximately $95.4 million, or 16.91% of the total. This is followed by Bayer AG Spons ADR (BAYRY) at $74.8 million (13.26%) and Flagstar Financial, Inc. (NYCB) at $53.8 million (9.53%).

• Citigroup Inc (C): 16.91% allocation, Financial Services
• Bayer AG Spons ADR (BAYRY): 13.26% allocation, Healthcare
• Flagstar Financial, Inc. (NYCB): 9.53% allocation, null sector
• Walt Disney (DIS): 6.47% allocation, Communication Services
• Alphabet Inc Class C (GOOG): 6.21% allocation, Communication Services
• Seaboard Corp (SEB): 5.88% allocation, Industrials
• Organon & Co (OGN): 5.88% allocation, Healthcare
• BP PLC (BP): 5.18% allocation, Energy
• Merck & Co. Inc. (MRK): 4.85% allocation, Healthcare
• Zillow Group (Z): 4.00% allocation, Communication Services

Sector Concentration

The portfolio exhibits significant concentration in the Financial Services and Healthcare sectors. Financial Services is represented by Citigroup Inc (C), while Healthcare includes substantial positions in Bayer AG (BAYRY), Organon & Co (OGN), Merck & Co. Inc. (MRK), and others. Communication Services is also well-represented through Walt Disney (DIS), Alphabet Inc (GOOG), and Zillow Group (Z). The Energy sector is represented by BP PLC (BP), and Industrials by Seaboard Corp (SEB).

Recent Changes in Holdings

Several holdings show significant changes in their share quantities from the previous period:

• Organon & Co (OGN) saw a massive increase of 52.56% in shares, indicating strong confidence in this healthcare stock.
• Conversely, holdings like Citigroup (C), Bayer (BAYRY), Flagstar Financial (NYCB), Walt Disney (DIS), Alphabet (GOOG), Seaboard (SEB), BP (BP), and Merck (MRK) all experienced decreases in their share quantities, ranging from 4.04% to 47.15%.

Investment Strategy Analysis

The portfolio's structure suggests a strategy focused on established large-cap companies across key sectors like Financial Services, Healthcare, and Communication Services. The significant allocation to Citigroup points to a belief in the stability and growth potential of the Financial Services sector. The dual 5.88% allocation to both Seaboard Corp (Industrials) and Organon & Co (Healthcare) highlights a diversified approach within the non-financial space, though the recent massive increase in Organon suggests a particular emphasis on healthcare innovation. The inclusion of consumer-facing companies like Disney and Alphabet, alongside the real estate technology focus of Zillow, indicates a blend of traditional and growth-oriented investments. The strategy appears to favor large, stable companies while also allocating to sectors showing strong performance or potential.