Kahn Brothers' Strategic Moves: Zillow Group Inc. Takes Center Stage with 4% Portfolio Share

This article first appeared on GuruFocus.

Insightful Analysis of Kahn Brothers (Trades, Portfolio)' First Quarter 2026 13F Filing

Warning! GuruFocus has detected 8 Warning Sign with C. Is C fairly valued? Test your thesis with our free DCF calculator.

Kahn Brothers (Trades, Portfolio) recently submitted their 13F filing for the first quarter of 2026, offering a glimpse into their strategic investment decisions during this period. Kahn Brothers (Trades, Portfolio) Group is a distinguished investment firm catering to institutional and high-net-worth clients. The firm provides investment management through its registered investment advisor, Kahn Brothers (Trades, Portfolio) Advisors LLC, and brokerage services via Kahn Brothers (Trades, Portfolio) LLC, a member of the New York Stock Exchange. Founded in 1978 by Irving Kahn, Thomas Graham Kahn, and Alan Kahn, the firm boasts an executive team with over a century of combined experience in the investment industry. Irving Kahn, the founding chairman, began his career in value investing just before the 1929 stock market crash and later served as Benjamin Graham's teaching assistant at Columbia Business School. Kahn Brothers (Trades, Portfolio) employs a bottom-up stock selection approach, focusing on undervalued equity securities that are often overlooked by the market, adhering to Benjamin Graham's investment philosophies.

Summary of New Buy

Kahn Brothers (Trades, Portfolio) added a total of one stock to their portfolio, with the most significant addition being Zillow Group Inc. (NASDAQ:Z). They acquired 545,212 shares, which now account for 4% of their portfolio, with a total value of $22.56 million.

Key Position Increases

Kahn Brothers (Trades, Portfolio) also increased their stakes in a total of four stocks. Notably, they added 1,907,542 shares of Organon & Co (NYSE:OGN), bringing the total to 5,536,993 shares. This adjustment represents a significant 52.56% increase in share count, impacting the current portfolio by 2.03%, with a total value of $33,166,590. The second largest increase was in Seaport Entertainment Group Inc. (NYSE:SEG), with an additional 307,057 shares, bringing the total to 893,227. This adjustment represents a 52.38% increase in share count, with a total value of $19,186,520.

Summary of Sold Out

Kahn Brothers (Trades, Portfolio) completely exited seven holdings in the first quarter of 2026, including:

Webster Financial Corp (NYSE:WBS): Sold all 29,833 shares, resulting in a -0.33% impact on the portfolio. NVIDIA Corp (NASDAQ:NVDA): Liquidated all 1,740 shares, causing a -0.06% impact on the portfolio.

Story Continues

Key Position Reduces

Kahn Brothers (Trades, Portfolio) also reduced their positions in 31 stocks. The most significant changes include:

Reduced Merck & Co Inc (NYSE:MRK) by 202,815 shares, resulting in a -47.15% decrease in shares and a -3.78% impact on the portfolio. The stock traded at an average price of $115.45 during the quarter and has returned -7.67% over the past three months and 6.95% year-to-date. Reduced BP PLC (NYSE:BP) by 416,146 shares, resulting in a -40.08% reduction in shares and a -2.56% impact on the portfolio. The stock traded at an average price of $39.18 during the quarter and has returned 13.05% over the past three months and 26.98% year-to-date.

Portfolio Overview

As of the first quarter of 2026, Kahn Brothers (Trades, Portfolio)' portfolio included 47 stocks. The top holdings were 16.91% in Citigroup Inc (NYSE:C), 13.26% in Bayer AG (BAYRY), 9.53% in Flagstar Bank NA (NYSE:FLG), 6.47% in The Walt Disney Co (NYSE:DIS), and 6.21% in Alphabet Inc (NASDAQ:GOOG).

The holdings are primarily concentrated in nine of the eleven industries: Healthcare, Financial Services, Communication Services, Energy, Industrials, Real Estate, Utilities, Technology, and Consumer Defensive.

View Comments