Fuller & Thaler 13F Reveals New $150M Bet on Industrials

A Form 13F regulatory filing submitted on May 14, 2026, revealed that Fuller & Thaler Asset Management held $10.2 billion in managed assets at the close of the first quarter. The report, which covers the period ending March 31, 2026, details significant portfolio adjustments, including the establishment of a major new position in the industrial sector and the complete exit from a high-profile technology stock. These moves provide a quarterly snapshot into the strategy of a firm known for its behavioral finance approach to investing.

What Are Fuller & Thaler's Largest Q1 Positions?

As of the first quarter's end, Fuller & Thaler's portfolio remained concentrated in value-oriented sectors, with a strong emphasis on energy and financial services. The firm's largest single holding was in energy supermajor Exxon Mobil (XOM). The filing showed an increase in this position by 5%, bringing the total value to approximately $450 million.

Other top holdings include significant stakes in regional banks and insurance companies, reflecting a continued bet on stable, cash-generative businesses. The firm maintained its position in RBC Bearings (RBC), a manufacturer of engineered precision bearings, with a holding valued at $320 million. This consistency in top-tier holdings suggests a long-term conviction in its core value thesis, even while rotating assets on the portfolio's periphery.

Which New Stocks Did the Firm Buy?

The most notable change in the first-quarter filing was the initiation of a substantial new position in General Electric (GE). Fuller & Thaler acquired 850,000 shares of the industrial conglomerate, a stake valued at just over $150 million as of March 31. This move marks a significant capital allocation toward a company undergoing a multi-year turnaround, signaling a belief that the market is mispricing its future earnings potential.

Beyond this large purchase, the firm also opened smaller positions in the materials sector. One example is a new $45 million stake in packaging company Sealed Air Corporation (SEE). These additions align with a broader theme of investing in tangible asset-heavy industries that may benefit from persistent inflation and renewed industrial policy focus.

Why Did Fuller & Thaler Exit Key Tech Holdings?

In a move that contrasts sharply with its new industrial bets, Fuller & Thaler completely liquidated its position in semiconductor giant Nvidia (NVDA). The firm sold all 500,000 of its shares during the quarter. This position had been a significant winner, valued at over $400 million at the end of the previous quarter. The sale locks in substantial gains and indicates a strategic decision to reduce exposure to high-valuation growth stocks.

This decision carries its own risks. Exiting a market leader like Nvidia could mean forgoing future gains if the artificial intelligence-driven rally continues its momentum. The move is a clear example of the firm's discipline in selling into strength, a core tenet of its investment philosophy, but it remains a contrarian stance in the current market.

How Does This Filing Reflect a Behavioral Strategy?

Fuller & Thaler's portfolio changes are a practical application of behavioral finance, an approach that seeks to capitalize on irrational investor behavior and cognitive biases. The purchase of GE, a stock that has underperformed the broader market for years, targets the 'neglect' and 'pessimism' biases, where investors may have written off a company's recovery prospects. The firm is betting on a positive reversion to the mean as the turnaround materializes.

Conversely, selling a popular and high-flying stock like Nvidia demonstrates a strategy to counter the 'herd mentality' and 'overconfidence' biases that can inflate asset bubbles. By rotating capital from a sector with high expectations to one with low expectations, the firm positions itself to profit from market inefficiencies. These investment strategies are built on the idea that market prices often deviate from fundamental value due to predictable human errors.

Q: What is a Form 13F filing?

A: A Form 13F is a quarterly report required by the U.S. Securities and Exchange Commission (SEC) for all institutional investment managers with at least $100 million in assets under management. The form discloses their long equity positions, providing a transparent look at what large funds are buying, selling, and holding. It does not disclose short positions or investments in other asset classes like bonds or commodities.

Q: Does this filing mean industrials will outperform tech?

A: Not necessarily. A 13F filing reflects the views and actions of a single asset management firm based on information that is already 45 days old. While Fuller & Thaler's moves indicate its conviction, it is just one market participant. Investors should view this data as a point of interest, not as a predictive indicator for the performance of entire market sectors.

Q: How large is Fuller & Thaler Asset Management overall?

A: The $10.2 billion reported in the 13F filing represents the value of the firm's publicly traded U.S. equity holdings. The firm's total assets under management (AUM) are slightly higher, approximately $11.5 billion, when including other assets and strategies not required to be disclosed on the 13F form. This figure places them among established, specialized asset managers.

Bottom Line

Fuller & Thaler’s Q1 2026 moves signal a conviction-driven rotation from high-momentum technology into undervalued industrial and energy sectors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.