Strategic Portfolio Changes
Kercheville Advisors Expands Energy and Tech Holdings, Trims Biotech and Gold Stakes in Q1
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Key Points
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Kercheville Advisors LLC opened a new position in Diamondback Energy by purchasing 4,000 shares in the first quarter, valued at about $791,000.
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Kercheville acquired 1,200 shares of Western Digital in the first quarter, valued at approximately $325,000.
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Kercheville reduced its SPDR S&P Biotech ETF (XBI) holdings by 66.9% in the first quarter, leaving 5,870 shares worth about $750,000.
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Kercheville trimmed its VanEck Gold Miners ETF (GDX) by 10.9% to 129,813 shares, about 3.8% of its portfolio, with a value around $11.9 million.
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Kercheville reduced Celsius Holdings (CELH) by 27.6% in the first quarter to 176,710 shares, representing about 2.0% of its portfolio and roughly $6.27 million in value.
Kercheville Advisors LLC made a notable move in early 2024, opening a brand-new position in Diamondback Energy by buying 4,000 shares worth about $791,000. The San Antonio-based firm, which manages roughly $313 million in assets, also picked up 1,200 shares of Western Digital for around $325,000 in the same quarter, according to MarketBeat.
At the same time, the firm cut its stakes in biotech, gold miners, and energy drinks. It slashed its SPDR S&P Biotech ETF position by 66.9% and trimmed Celsius Holdings by 27.6%. The moves paint a clear picture: Kercheville is rotating out of speculative growth and into harder, cash-flow-rich assets.
Diamondback and Western Digital Signal New Bets
Kercheville's new Diamondback Energy stake arrives at a key moment. In February 2024, Diamondback announced a $26 billion merger with Endeavor Energy Resources. That deal made it the largest pure-play operator in the Permian Basin, trailing only ExxonMobil and Chevron in regional production, according to Fintel.
The Western Digital buy also carries strategic weight. The company is splitting its Flash and Hard Disk Drive businesses apart. Demand for high-capacity drives used in AI data centers has surged, giving storage stocks a fresh tailwind. CEO David Goeckeler called the separation a move designed to "unlock significant value" for shareholders.
Biotech and Celsius Holdings Get Cut Sharply
Kercheville sold off a large chunk of its SPDR S&P Biotech ETF (XBI), cutting the position by 66.9%. It now holds just 5,870 shares worth about $750,000. High interest rates have hurt small biotech companies. Those rates reduce the value of future profits, making speculative biotech a risky bet right now, according to Seeking Alpha.
The firm also cut Celsius Holdings (CELH) by 27.6%, dropping to 176,710 shares worth roughly $6.27 million, or about 2% of its portfolio. Celsius posted record Q1 revenue of $356 million — a 37% jump — but institutional sellers stayed cautious. Analysts at Stockzoa noted concern over margin pressure and the firm's growing reliance on the Alani Nu brand for growth.
Gold Miners Trimmed Despite Record Gold Prices
Even gold did not escape the cuts. Kercheville trimmed its VanEck Gold Miners ETF (GDX) by 10.9%, leaving 129,813 shares valued at about $11.9 million — still its largest single position at 3.8% of the portfolio. The trim is notable because gold prices hit record highs in early 2024. Yet gold mining stocks often fail to keep pace with the metal itself due to rising operating costs.
According to Fintel, large institutional players including Vanguard and BlackRock also shuffled their positions in GDX during the same quarter. That suggests Kercheville's move is part of a broader institutional reassessment of miners, not a one-off decision.
A Clear Shift Toward Energy and AI Infrastructure
Taken together, Kercheville's Q1 moves tell a consistent story. The firm is pulling back from volatile sectors — biotech, consumer energy drinks, speculative growth — and moving toward American energy production and AI-linked storage. Both themes have been among the strongest market narratives of 2024.
MarketBeat analysts described the activity as a "diversified" reshuffling, but the direction is clear. Kercheville is betting on cash flow over growth stories. With its overall asset base shrinking by roughly 18%, the firm appears to be concentrating on fewer, higher-conviction plays rather than spreading thin across sectors.
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