Sepio Capital's ETF Rebalancing
Sepio Capital LP Significantly Adjusts ETF Portfolio with New and Expanded Holdings
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Key Points
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Sepio’s new position in the Cambria Emerging Shareholder Yield ETF (EYLD) came via the purchase of 373,463 shares (about $14.315 million) in the 4th quarter, making EYLD its 22nd-largest holding (roughly 0.8% of the portfolio).
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For the iShares Russell 1000 Growth ETF (IWF), Sepio increased its stake by 165.4% in the 4th quarter—ending with 21,572 shares after adding 13,443 shares—valued at about $10.21 million in its latest filing.
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Sepio’s iShares Core S&P 500 ETF (IVV) position rose by 584.5% in the 4th quarter to 10,240 shares (adding 8,744 shares), worth roughly $7.014 million; the article also cites large IVV holders such as Marshall Wace (27,524,315 shares) and Allianz Asset Management (8,324,104 shares).
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Sepio added to the iShares Russell 2500 ETF (SMMD) with an acquisition of 67,359 shares (about $5.048 million) in the 4th quarter, which the report says represented about 0.31% ownership of the fund at the end of the reporting period.
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Sepio reduced exposure to the iShares MSCI ACWI ETF (ACWI) by 4.3% in the 4th quarter, selling 6,118 shares and ending with 135,697 shares—reported as about $19.2 million and roughly 1.1% of the portfolio.
Salt Lake City investment firm Sepio Capital LP made its biggest single move of Q4 2023 by buying 373,463 shares of the Cambria Emerging Shareholder Yield ETF (EYLD) — a stake worth roughly $14.3 million, according to Watchlist News. The new position became Sepio's 22nd-largest holding, representing about 0.8% of the firm's total portfolio.
The EYLD purchase was part of a broader rebalancing across Sepio's roughly $1.84 billion book. The firm sharply increased its exposure to U.S. growth stocks while trimming its global equity holdings — a clear bet on American markets over the rest of the world.
Sepio Pours Money Into U.S. Growth ETFs
Sepio's most aggressive move was in the iShares Core S&P 500 ETF (IVV). The firm added 8,744 shares — a 584.5% jump — ending Q4 with 10,240 shares worth about $7 million, per Watchlist News. That kind of surge signals a conviction buy, not a routine top-up.
Sepio also raised its stake in the iShares Russell 1000 Growth ETF (IWF) by 165.4%, adding 13,443 shares to end the quarter with 21,572 shares valued at roughly $10.2 million. The Russell 1000 Growth tracks large U.S. companies with fast earnings growth — the kind of stocks that surged in late 2023 on the back of artificial intelligence optimism.
A New Bet on Shareholder-Friendly Emerging Markets
The EYLD purchase stands out because it is not a standard emerging markets fund. Instead of tracking a broad index, EYLD targets companies in developing countries that return cash to shareholders through dividends, buybacks, and debt reduction. Cambria's co-founder Meb Faber has argued that "investors often overlook the power of buybacks and debt paydown in emerging markets."
Analysts describe the EYLD move as a "sophisticated tilt" — Sepio is not abandoning emerging markets, it is picking a smarter slice of them. At $14.3 million and 373,463 shares, it was the firm's single largest new position of the quarter, per Watchlist News.
Sepio Trims Global Fund While Adding Small-Cap Exposure
Sepio cut its iShares MSCI ACWI ETF (ACWI) position by 4.3%, selling 6,118 shares and ending Q4 with 135,697 shares worth about $19.2 million. ACWI is a catch-all global fund. Trimming it freed up capital for more focused bets.
At the same time, Sepio added 67,359 shares of the iShares Russell 2500 ETF (SMMD), worth about $5 million. That position gave Sepio roughly 0.31% ownership of the entire SMMD fund — a meaningful stake in a niche product that tracks mid- and small-cap U.S. stocks, according to Watchlist News.
Sepio's Moves Mirror a Wider Institutional Trend
Sepio is not alone in piling into IVV. Hedge fund Marshall Wace held over 27.5 million IVV shares, while Allianz Asset Management held more than 8.3 million, per Watchlist News. For large institutions, IVV serves as a core "liquidity bucket" — easy to buy, easy to sell, always in demand.
Together, Sepio's Q4 moves paint a clear picture: double down on U.S. growth, add a smart emerging markets position, and pull back from broad global diversification. It is the same "barbell" playbook many wealth managers ran in late 2023 as U.S. tech stocks left the rest of the world behind.
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