Dorsey Asset Management LLC 13F holdings and portfolio analysis

Directly following the baseline means accepting a very top-heavy 10-name book. The strategy artifact shows top 5 concentration at 64.42% and top 10 at 100.01%, with Danaher at 17.41%, AerCap at 16.05%, and Sunbelt Rentals at 13.19% leading the portfolio. Sector exposure is also focused in Health Care at 31.02%, Industrials at 29.24%, and Communication Services at 23.9%. The artifact additionally flags filing-delay implementation risk and notes 187 trades with 1.5007 total estimated cost, so the exposure is not just concentrated but also dependent on delayed public disclosures.

The recent baseline periods that best show the trade-off are 2024-09-30, 2024-06-30, and 2025-03-31. In 2024-09-30 the baseline returned 8.38% versus SPY at 2.76%, a +5.62 pt excess return with 14.4 turnover and 6 trades. But in 2024-06-30 the baseline returned only 3.86% versus SPY at 9.83%, a -5.97 pt excess return despite lower 9.06 turnover. In 2025-03-31 the baseline still returned 8.14%, but lagged SPY’s 9.22% by -1.08 pt while turnover rose to 25.12. Those periods show the pattern: concentrated stock selection can produce strong bursts of excess return, but it can also lag badly when leadership shifts.

A user should inspect three things next: concentration, drawdown behavior, and implementation lag. Concentration is severe, with the top 5 at 64.42% and the portfolio fully concentrated in 10 names. Drawdown is still large at -36.2% even though beta is just 0.55, so lower market sensitivity did not eliminate painful losses. Finally, the baseline artifact explicitly notes filing-delay trading windows and 505 recovery days, which means copycat investors need to understand how stale disclosures and long recovery periods affect real-world replication.