Portfolio Management in the Age of Volatility

In a market environment characterized by high volatility, technological transformation, and geopolitical uncertainty, the investment portfolios of leading asset managers draw keen attention from both retail and institutional investors. Samantha McLemore, a well-known U.S. portfolio manager and former co-portfolio manager at Bill Miller’s Miller Value Partners, is regarded as one of the most influential women on Wall Street. Her current equity portfolio, as depicted in the June 2025 CEOwatchlist chart, offers a revealing window into modern diversification strategies, sector positioning, and calculated risk-taking in a complex financial landscape.

Quantitative Breakdown – The Portfolio by Numbers

The chart illustrates a well-diversified portfolio, with the ten largest holdings making up nearly half of the total assets and the remaining 53.4% grouped under “Other”—a mix of mid- and small-cap positions, private equity, or international exposures not specifically disclosed. The portfolio’s largest disclosed position is in Amazon (AMZN), at 6%. Following closely are significant allocations to major U.S. and global firms: Citi (C) at 5%, QXO (5%), Alphabet/Google (GOOGL) at 4.8%, Royalty Pharma (RPRX) at 4.7%, Energy Transfer (ET) and CVS Health (CVS) each at 4.6%, Meta (META) at 4.3%, IAC at 4%, and General Motors (GM) at 3.6%.

The rest of the portfolio includes notable stakes in Nvidia, Delta Air Lines, United Airlines, Coinbase, Alibaba, and a variety of companies that span technology, finance, healthcare, retail, and transportation. This broad exposure reflects a deliberate strategy to capture upside from leading megacaps, while retaining flexibility to pivot between cyclical and defensive sectors.

Sector Exposure – Balancing Growth, Cyclicality, and Stability

A closer examination reveals McLemore’s preference for technology and consumer internet stocks, a hallmark of modern growth investing. Amazon, Google, Meta, and Nvidia collectively represent a substantial portion of the allocation, leveraging their dominance in cloud computing, digital advertising, AI infrastructure, and consumer platforms. The inclusion of Coinbase and Alibaba adds international and crypto-market exposure, suggesting a willingness to take calculated risks in high-growth, high-volatility spaces.

The financial sector is also well-represented. Citi, IAC, and Royalty Pharma anchor the portfolio’s exposure to financial services, investment platforms, and healthcare royalties. This mix provides both recurring cash flows and growth optionality, an essential combination in a late-cycle market environment.

McLemore’s positions in Delta, United, and General Motors signal an interest in cyclical recovery and the ongoing transformation of transportation—spanning from post-pandemic air travel demand to the automotive industry’s shift toward electrification and mobility services. The portfolio’s stake in Energy Transfer highlights a pragmatic approach to the energy transition, balancing green ambitions with the realities of current U.S. energy infrastructure.

Risk Management and Diversification – Defensive Plays and Healthcare Focus

Healthcare, represented by CVS and Royalty Pharma, offers defensive ballast. In times of economic slowdown or rising interest rates, these positions historically provide stability thanks to steady demand for health products and pharmaceuticals. CVS, a leader in integrated health services and retail pharmacy, benefits from demographic trends and the expanding U.S. healthcare market. Royalty Pharma, with its unique royalty-based business model, delivers cash flows less correlated to traditional biotech volatility.

Consumer and retail exposure—Amazon and CVS above all—anchors the portfolio’s defensive core, providing both digital growth and resilient consumer demand regardless of macroeconomic headwinds. Meanwhile, the “Other” category’s substantial weight indicates a strong bias toward flexibility, allowing McLemore to quickly respond to evolving market trends, new sector leadership, or changing global risk factors.

Strategic Analysis – How the Portfolio Reflects Broader Market Themes

The portfolio reflects a nuanced approach to the interplay of megatrends shaping capital markets in 2025. High-conviction bets on AI, cloud, and digital advertising demonstrate confidence in technology’s secular expansion. The presence of airlines and auto manufacturers reveals a belief in the normalization and future transformation of mobility, even as supply chains and travel patterns remain volatile.

Energy Transfer’s inclusion underscores the pragmatic challenge of investing during the energy transition, balancing exposure to renewables and traditional fossil fuels as the global energy system shifts. Simultaneously, the portfolio’s sizable healthcare allocation demonstrates an awareness of demographic shifts, public health policy, and the importance of durable cash flows in uncertain times.

McLemore’s portfolio also embodies “optionality”—the ability to benefit from a range of outcomes in a changing market. By maintaining over half the portfolio in “Other” holdings, she keeps dry powder for tactical shifts, emergent sectors, or opportunistic buys, such as potential IPOs or international equities not yet reflected in the main holdings.

Comparative Perspective – How McLemore’s Allocation Stacks Up

Compared to many U.S. mutual funds or index benchmarks, McLemore’s allocation leans more heavily into technology, healthcare, and diversified cyclicals. The balance between megacap growth and cyclical value contrasts with the often passive, index-hugging stance of large asset managers. In the current cycle, with tech leading equity market gains and energy and transportation sectors rebounding, this approach has outperformed more concentrated or static strategies.

At the same time, the presence of crypto exposure (Coinbase) and Chinese tech (Alibaba) reflects a level of risk tolerance uncommon among strictly institutional managers, while still aligning with the search for asymmetric returns in a digitalized, globalized economy.

Risk Factors and the Importance of Active Management

Despite the strengths of diversification, McLemore’s portfolio faces clear risks: rising interest rates, global macro volatility, and regulatory headwinds—particularly in technology, healthcare, and cross-border commerce. The high allocation to tech and consumer-facing names means the portfolio may be more exposed to corrections if market sentiment shifts or if earnings growth disappoints. Additionally, reliance on active management places significant importance on timely sector rotation, security selection, and risk mitigation—a skillset McLemore has demonstrated but one that remains challenging in unpredictable markets.

Conclusion – A Dynamic Blueprint for Navigating Modern Markets

Samantha McLemore’s portfolio stands as a modern, flexible, and strategically balanced example of active equity management. It is anchored by conviction in technology, healthcare, and consumer strength, yet remains nimble enough to capitalize on sector rotation and emergent opportunities. The balance of growth, defensive exposure, and “optionality” positions the portfolio to withstand shocks and harness upside in the rapidly shifting global investment landscape. For investors, McLemore’s approach highlights the value of diversification, active strategy, and adaptability in an era where passive investing may no longer suffice.