Li Lu's Himalaya Capital: Alphabet Dominance in March 2026 Portfolio

Introduction

Himalaya Capital Management, the investment vehicle managed by renowned investor Li Lu, held a substantial portfolio as of March 31, 2026. This analysis focuses on the key holdings, sector allocations, and recent changes observed in the portfolio.

Top Holdings and Concentration

The portfolio exhibits a clear preference for large-cap technology companies, particularly those within the Communication Services sector. Alphabet Inc. stands out as the dominant holding, with its two classes (GOOGL and GOOG) combined representing approximately 44.82% of the total portfolio value. This dual-class structure provides significant exposure to the core search and advertising business.

• GOOGL/GOOG: Alphabet Inc. (GOOGL/GOOG) - Communication Services - Dominates the portfolio with ~44.82% combined allocation.
• BK of America Corp (BAC): Financial Services - Shows a significant decrease in shares (-71.26%) from the previous period.
• CROX: Consumer Cyclical - Demonstrates a substantial increase in shares (+41.22%) and percentage allocation (+2.3%) during the period.
• TME: Communication Services - Tencent Music Entertainment Group (TME) - Showed a 100% increase in shares (+100.0%) and percentage allocation (+1.91%) during the period.

Sector Allocation and Strategic Focus

The portfolio's sector allocation highlights a strong bias towards Financial Services and Communication Services. Financial Services, encompassing holdings like Bank of America (BAC), S&P Global (SPGI), Moody's (MCO), MSCI (MSCI), and HRB (Block H&R Inc.), accounts for approximately 12.75% of the portfolio value. This allocation underscores a strategic interest in the financial sector, potentially seeking exposure to diverse aspects like banking, ratings, indices, and consumer reporting.

Communication Services, home to Alphabet Inc. (GOOGL/GOOG) and Tencent Music Entertainment (TME), holds a combined allocation of roughly 24.78% (22.85% + 21.97% + 1.91%). This sector, known for companies involved in internet, media, and communication platforms, aligns with a technology/media-focused strategy, heavily weighted towards Alphabet.

Recent Changes and Investment Strategy

The portfolio shows dynamic changes in specific holdings. Bank of America (BAC) experienced a significant reduction in its position, with a nearly 71% decrease in shares and percentage allocation. This could indicate a strategic shift away from traditional US banking or a reassessment of its outlook.

Conversely, CROX saw a substantial increase in its position, with a 41% jump in shares and a corresponding increase in its portfolio percentage allocation. This suggests confidence in the consumer cyclical footwear retailer's prospects. Similarly, TME and several smaller holdings (SPGI, HRB, MCO, MSCI) showed a 100% increase in shares during the period, indicating either new additions or a doubling down on these positions.

Conclusion

In summary, Li Lu's Himalaya Capital Management portfolio as of March 31, 2026, is characterized by extreme concentration in Alphabet Inc. (GOOGL/GOOG), complemented by significant allocations to Financial Services and Communication Services sectors. The strategy appears to involve a core position in technology/media, supplemented by targeted investments in financial services and specific consumer cyclical plays. Recent changes highlight both strategic reductions (like BAC) and significant additions (like CROX and several smaller holdings).