Hill City Capital 13F Reveals New $85M Tech Stake

A regulatory filing from Hill City Capital made public on May 15, 2026, detailed the investment firm’s portfolio changes for the first quarter ending March 31. The Form 13F report, a mandatory disclosure for institutional investors managing over $100 million, showed a total of $1.2 billion in managed long positions. The fund's most significant move was the initiation of a new $85 million stake in Microsoft Corp. (MSFT), signaling a fresh allocation toward large-cap technology.

What New Positions Did Hill City Add?

Hill City Capital's primary acquisition during the first quarter was a substantial new position in Microsoft. The fund purchased approximately 200,000 shares, establishing a holding valued at $85 million as of the quarter's end. This move marks a significant bet on the continued growth of enterprise software and cloud computing, two of Microsoft's core revenue drivers.

The investment aligns with a broader trend among institutional managers seeking exposure to companies with strong recurring revenue models and dominant market positions. The size of the purchase makes Microsoft one of the fund's top ten holdings, representing roughly 7% of its reported public equity portfolio. This allocation suggests high conviction from the fund's management in the tech giant's performance outlook for 2026.

Which Holdings Did the Fund Sell Off?

The filing also revealed a complete exit from industrial machinery manufacturer Caterpillar Inc. (CAT). Hill City liquidated its entire position, which consisted of approximately 165,000 shares valued at nearly $60 million. This divestment removes the fund's direct exposure to the global construction and mining sectors.

Selling an industrial bellwether like Caterpillar can indicate a fund's defensive repositioning or a specific thesis about a slowdown in global economic growth. Cyclical industries are often sensitive to changes in macroeconomic forecasts. The sale of its entire stake, rather than a partial trim, suggests a decisive strategic shift away from this sector for at least the medium term.

How Did Hill City Adjust Existing Stakes?

Beyond new entries and exits, Hill City actively managed its existing positions. The fund increased its stake in payments technology leader Visa Inc. (V) by 35%, adding 100,000 shares. This move boosted the total value of its Visa holding to over $92 million, reinforcing its bet on the global transition to digital payments.

Conversely, the firm trimmed its exposure to e-commerce and cloud company Amazon.com Inc. (AMZN). It sold approximately 50,000 shares, reducing its position by 15%. While still a significant holding, the reduction points to tactical profit-taking or a reallocation of capital toward other opportunities like Microsoft. These adjustments highlight a nuanced rotation within the fund’s tech and consumer-focused investments.

What Are the Limitations of 13F Filings?

Investors should recognize the inherent limitations of Form 13F data. The report is a snapshot of a fund's U.S.-listed long positions as of March 31, 2026, making the information 45 days old by the time it becomes public. The portfolio could have changed significantly between the end of the quarter and the filing date.

these filings do not provide a complete picture of a fund's strategy. They exclude short positions, which are bets against a stock, as well as holdings in international markets, derivatives, and cash reserves. Therefore, the 13F offers a valuable but incomplete window into an institution's overall market view and risk exposure. It is a starting point for analysis, not a complete equities playbook.

Q: What is a Form 13F?

A: A Form 13F is a quarterly report required by the U.S. Securities and Exchange Commission (SEC) for institutional investment managers with at least $100 million in assets under management. It discloses their U.S. exchange-traded equity holdings, including stocks and options. The purpose is to increase transparency in the financial markets by making these managers' positions public. The deadline to file is 45 days after the end of each calendar quarter.

Q: Does this filing show Hill City Capital's entire portfolio?

A: No, the 13F filing does not represent the entirety of Hill City's portfolio. It only details long positions in U.S.-listed securities. It omits several key asset classes, such as international stocks, bonds, commodities, and currencies. Crucially, it does not disclose short positions, meaning it provides no insight into the fund's hedging strategies or bearish bets. Cash levels and other non-equity assets are also not included.

Q: How large is Hill City Capital?

A: Based on the positions listed in this Q1 2026 filing, Hill City Capital managed at least $1.2 billion in U.S. equities. This figure is derived from the market value of the disclosed long positions. The firm's total assets under management (AUM) are likely higher, as this number does not account for cash, short positions, or assets held outside the scope of the 13F reporting requirements.

Bottom Line

Hill City Capital's Q1 filing indicates a strategic rotation into large-cap tech while reducing exposure to industrial and consumer sectors.

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