Strategic Portfolio Rebalancing
Cane Capital Rebalances Portfolio, Slashes Tech Holdings While Boosting IBM Stake in Q1
Anonymous
Key Points
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In ServiceNow, a substantial portion of the stock is held by hedge funds and other institutional investors, accounting for 87.18% of shares outstanding.
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Cane Capital increased its stake in IBM to 4,758 shares (up 2,489 shares) for a value of about $1.153 million. IBM stock opened at $286.16 and traded within a 52-week range of $212.34 to $332.46, with a 50-day moving average of $255.59 and a 200-day moving average of $266.34.
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Cane Capital's Palo Alto Networks (PANW) holding stands at 18,307 shares, worth about $2.935 million, making PANW roughly 1.3% of Cane Capital’s portfolio and ranking as its 20th biggest position.
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Deere & Company (DE) sits at 3,251 shares after Cane Capital trimmed 64.3% of its position, with the stake valued around $1.831 million; overall institutional ownership of DE is 68.58% of the stock.
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Annaly Capital Management (NLY) declined by 51.0% in Cane Capital’s holdings, leaving 24,028 shares valued at about $508,000; institutional ownership of the stock stands at about 51.56%.
Cane Capital Partners LLC slashed its ServiceNow stake by 76.1% in the first quarter, selling 24,348 shares and leaving just 7,636 shares worth about $798,000, according to MarketBeat. At the same time, the firm more than doubled its position in IBM, adding 2,489 shares for a total of 4,758 shares valued at roughly $1.15 million.
The moves paint a clear picture: Cane Capital is pulling money out of high-priced software stocks and putting it into what analysts call lower-risk, infrastructure-focused tech. The firm also cut its stakes in Palo Alto Networks, Deere & Company, and Annaly Capital Management during the same period.
IBM Doubles While ServiceNow Gets Gutted
Cane Capital's IBM bet is striking. The firm added 2,489 shares — a 109.7% increase — bringing its total to 4,758 shares worth about $1.15 million, according to MarketBeat. IBM stock opened at $286.16 and has traded between $212.34 and $332.46 over the past year. Its 50-day moving average sits at $255.59, well below the current price, suggesting recent upward momentum.
Meanwhile, ServiceNow took the hardest hit in Cane's portfolio. The firm sold 24,348 shares, keeping only 7,636. Motley Fool noted that ServiceNow had a "brutal first half," with investors worried that AI agents could replace the expensive software subscriptions the company depends on. Still, the company's subscription revenue rose 22% in Q1 — a fact bulls say the market is ignoring.
Palo Alto Networks Cut but Not Abandoned
Cane Capital sold 15,681 shares of Palo Alto Networks, trimming its stake by 46.1%, according to Watchlist News. The firm still holds 18,307 shares worth about $2.94 million. That makes PANW roughly 1.3% of Cane's total portfolio and its 20th biggest position. The partial exit suggests caution, not a full exit from cybersecurity.
Palo Alto has been pushing its "platformization" strategy — bundling many security tools into one system. In January 2026, the company acquired Chronosphere for $3.35 billion, a cloud monitoring firm, according to research compiled by MarketBeat. Cane's partial trim may reflect concern about integration risk rather than a loss of faith in the cybersecurity sector overall.
Deere and Annaly Face the Deepest Cuts
Cane Capital cut its Deere & Company holding by 64.3%, leaving just 3,251 shares worth about $1.83 million. Institutional investors own 68.58% of Deere overall, according to MarketBeat. The reduction tracks with broader pressure on industrial stocks. Kuhn Capital Partners noted in its Q1 client letter that the period was "difficult and unusual," partly due to geopolitical risks hitting supply chains hard.
Annaly Capital Management also took a big hit in Cane's portfolio. The firm cut its position by 51.0%, leaving 24,028 shares valued at about $508,000. Annaly is a real estate investment trust, and its institutional ownership stands at 51.56%, according to MarketBeat. Higher interest rates have pressured mortgage-focused REITs like Annaly, making the trim unsurprising to most analysts.
The Bigger Bet: Safer Tech Over Pricey Software
Analysts see Cane's moves as a shift from high-risk, high-multiple software stocks toward steadier, infrastructure-heavy tech. IBM carries a beta of 0.68 — meaning it moves less sharply than the broader market. Hyper-scalers like Microsoft, Google, and Meta are projected to spend $687 billion on AI infrastructure in 2026, a 345% jump from 2023 levels, according to research cited by MarketBeat. IBM's consulting and hardware arms sit squarely in that spending path.
Not everyone agrees Cane got it right. GuruFocus analysts argue ServiceNow is "significantly undervalued," trading 54% below its estimated fair value of $229.91. Guggenheim analyst John DiFucci recently upgraded the stock to a Buy, suggesting the selling has been "relentless" and overdone. If that view proves correct, Cane Capital may have exited one of its best opportunities right at the bottom.
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