Maverick Capital Q4 2025 Portfolio Rotation Analysis

Based on my research, I can provide a comprehensive analysis of Maverick Capital’s Q4 portfolio rotation and its implications for broader institutional sector allocation trends.

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According to the Q4 2025 13F filings,

during the fourth quarter [1][2]. These additions align with the firm’s focus on AI infrastructure and semiconductor hardware - Applied Materials is a key semiconductor equipment play, while Google represents exposure to cloud AI services and data center growth.

This aggressive rotation into AI-related hardware and tech infrastructure follows the broader theme of capital flowing into AI data centers, with expectations of

based on early 2026 outlooks [3].

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1. AI Infrastructure Investment Theme
   : Based on 2026 outlooks, expectations of continued economic growth, rate cuts, and high corporate earnings are driving investor money into AI infrastructure [3].

2. Maverick’s Specific Thesis
   : The firm appears to be betting on the secular growth of AI hardware demand - specifically semiconductors (TSMC, Applied Materials) and AI platform companies (Google).

3. Sector Concentration Risk
   : The top 10 mega-cap tech names now comprise approximately
   40% of S&P 500 weight
   - an all-time high - indicating continued institutional preference for technology [4].

1. Counter-Rotation Emerging
   : Recent February 2026 data reveals a notable rotation
   out of mega-cap tech
   and into
   value and small-cap stocks
   :
   • Russell 1000 Growth fell 1.5% in January, while Russell 1000 Value jumped 4.6% and Russell 2000 gained 5.4% [4]
   • This is described as “a classic sector rotation setup” and “a direct response to a shifting policy landscape” [4]

2. Institutional Portfolio Adjustments
   : Federated Hermes’ Q4 2025 barometer shows institutions
   moderating technology allocations
   “as part of a wider trend of managing mega-cap (i.e., Magnificent 7) concentration” [5].

3. Health Care Gaining Traction
   : Health care recorded its
   first allocation increase since Q3 2024
   , becoming a common overweight in advisor portfolios [5].

4. Financials Not Abandoned
   : Rather than a wholesale exit, financials appear to be maintaining their role in balanced portfolios, with fixed income (including financial-sector-linked holdings) serving as “portfolio stabilizers” [5].

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While AI remains a dominant theme in 2026, the data actually suggests a

beginning in early 2026, with institutions pulling back from mega-cap concentration and rotating into value and small-cap segments. Financials have not been abandoned by the broader institutional community - rather, portfolios are becoming more balanced with increased exposure to healthcare, industrials, and international markets.

The reality is more nuanced than a simple “tech vs. financials” narrative. Institutions are managing concentration risk while seeking diversification benefits in a late-cycle environment characterized by policy uncertainty and elevated valuations in large-cap growth names.

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[1] Futubull - Microsoft (MSFT) News Flow (https://www.futunn.com/en/stock/MSFT-US/news)

[2] 富途牛牛 - CSOP NVIDIA Daily (https://www.futunn.com/en/etfs/07388-HK)

[3] Forbes - “Whether To Follow $602 Billion Flowing To AI Data Centers In 2026” (https://www.forbes.com/sites/petercohan/2026/01/23/whether-to-follow-602-billion-flowing-to-ai-data-centers-in-2026/)

[4] AInvest - “February 2026 Market Review: Value Rotation and Policy Inflection” (https://www.ainvest.com/news/february-2026-market-review-rotation-policy-inflection-2602/)

[5] Federated Hermes - “Barometer: Analyzing Q4 portfolio trends” (https://www.federatedhermes.com/us/insights/article/barometeranalyzing-q4-portfolio-trends.do)