Muhlenkamp's Concentrated Portfolio in Materials and Energy

Introduction

Ronald Muhlenkamp, managing the investment strategy at Muhlenkamp & Co, maintains a portfolio with a significant emphasis on certain sectors and individual stocks. As of March 31, 2026, the portfolio's allocation reflects a targeted approach focused on select industries.

Top Holdings by Value

The portfolio's largest individual positions, measured by total stock value, are heavily concentrated in the Energy and Basic Materials sectors. Agnico Eagle Mines Ltd. (AEM) stands out with a substantial allocation of $28.1 million, representing 7.41% of the total portfolio value. Newmont Corp. (NEM) follows closely with $25.0 million, also accounting for 6.59% of the assets. EQT Corp. (EQT) adds another $25.5 million, or 6.72%, to the mix. Completing the top four holdings by value are McKesson Corp. (MCK) at $23.5 million (6.19%) and Rush Enterprises Inc. (RUSHA) at $21.9 million (5.78%).

Sector Concentration

The portfolio exhibits a clear preference for sectors beyond just Energy and Basic Materials. The combined allocation for these two sectors is particularly noteworthy. Basic Materials includes significant positions in AEM, NEM, and Royal Gold Inc. (RGLD), while Energy is represented by EQT and SLB. Healthcare is represented by McKesson Corp. (MCK), and Industrials by WABTEC (WAB). Technology is represented by Apple Inc. (AAPL), and Consumer Cyclical by Rush Enterprises Inc. (RUSHA). Financial Services is represented by Berkshire Hathaway Inc. (BRK-B). This indicates a multi-sector approach, though with varying degrees of concentration.

Recent Changes in Holdings

Several holdings show significant changes in their share count and percentage allocation compared to the previous period. Agnico Eagle Mines Ltd. (AEM) saw a reduction of 8.41% in its share count. Newmont Corp. (NEM) experienced an even steeper decline of 18.58% in shares. EQT Corp. (EQT) also decreased its share count by 11.03%. On the other hand, McKesson Corp. (MCK) increased its share count by a small margin of 0.23%. Rush Enterprises Inc. (RUSHA) saw a decrease of 11.27% in its holdings. Berkshire Hathaway Inc. (BRK-B) experienced a negligible decrease of 0.08% in shares. SLB saw a slight increase of 0.76% in shares, while Apple Inc. (AAPL) saw a very minor decrease of 0.18% in shares. WABTEC (WAB) saw a very slight increase of 0.20% in shares. These changes reflect active management decisions, with some positions being trimmed and others slightly increased or maintained.

Investment Strategy Analysis

The overall investment strategy appears to favor established, large-cap companies across various sectors, including significant exposure to the Energy and Basic Materials sectors. The portfolio includes a major technology holding in Apple Inc. (AAPL) and exposure to consumer cyclical stocks like Rush Enterprises Inc. (RUSHA). The inclusion of healthcare (McKesson Corp. - MCK) and industrials (WABTEC - WAB) further diversifies the core holdings. The strategy seems to involve selective concentration, given the significant allocations to specific companies like AEM, NEM, and EQT, alongside a substantial position in the stable Berkshire Hathaway Inc. (BRK-B). The decision to reduce positions in several large holdings (AEM, NEM, EQT, RUSHA) suggests a dynamic approach where holdings are periodically reviewed and adjusted based on performance or strategic fit.