Joel Greenblatt's Gotham Asset Management pared back its positions in memory-chip makers Micron Technology and Sandisk during the second quarter while substantially building out stakes in Airbnb, Gen Digital and specialty chemical maker NewMarket Corporation, according to the firm's latest 13F filing with the Securities and Exchange Commission.
The filing shows Gotham's Micron shares fell 48% to 127,170 shares, a position now valued at $146.79 million, while its Sandisk holding dropped 38.4% to 61,880 shares, worth $140.70 million. Western Digital, another storage-adjacent name, saw an even steeper reduction, down 54.7% to 166,760 shares. On the other side of the ledger, Gotham's Airbnb stake climbed 50.8% to 936,720 shares valued at $134.04 million, its Gen Digital position more than tripled with a 204.6% increase to $110.98 million, and its NewMarket holding surged 247.3% to 130,870 shares worth $103.55 million. The move first stood out in data tracked on Trade Filings, a Madison Labs research site.
The reshuffling is notable because it comes from a firm built on systematic value investing rather than sector conviction. Gotham, co-led by Greenblatt, runs a strategy that spreads capital across hundreds of small long positions rather than concentrated sector bets, with its Q2 2026 13F reporting $42.96 billion in total reportable value. Within that framework, sector exposure shifts were modest overall, Technology rose just 0.1 percentage point and Consumer Cyclical fell 0.3 percentage point quarter-over-quarter, suggesting the individual stock moves in chip names and travel-and-software names reflect valuation screening rather than a broad directional sector call.
Whether the trims signal anything meaningful for investors depends on how one reads a value manager's mechanics. Firms like Gotham typically rotate out of positions as prices rise relative to their models' estimate of intrinsic value and into names that screen as comparatively cheap, meaning a reduction in a stock does not necessarily reflect a negative outlook on the underlying business: it may simply reflect valuation math after a run-up. Micron and Sandisk have both been central to the memory-chip and AI-infrastructure trade that has dominated markets over the past year, and any paring by a large systematic holder can draw attention even when it stems from portfolio rebalancing rather than a directional thesis.
Gotham's broader top holdings underscore that index and ETF exposure still anchors the portfolio: the State Street SPDR S&P 500 ETF remains its largest position at $8.51 billion, followed by smaller stakes in Apple and Nvidia. Other notable moves in the quarter included a 6,478.7% jump in Humana shares, a 1,767.9% increase in Highwoods Properties, and reductions of roughly 25% in Iridium Communications and 27% in NetApp, illustrating the scale of turnover across the firm's long tail of positions.
The adjustments land against a turbulent backdrop for chip and AI-infrastructure stocks. Broader market commentary has flagged semiconductor weakness dragging down the S&P 500 and Nasdaq, with Nvidia's recent slide fueling debate over whether it reflects earnings apprehension or a broader unwind of the AI trade. Advanced Micro Devices moved up 4.9% in recent trading even as other chip-linked names came under pressure, highlighting the uneven nature of sentiment across the sector. Meanwhile, cryptocurrency markets showed mixed signals, with Bitcoin roughly flat near $78,773 and Ethereum down 1.2% over 24 hours, offering little directional read-through for equity investors weighing chip exposure.
Background on Gotham's approach helps frame the filing: the firm has long been associated with quantitative, rules-based value screening rather than thematic sector bets, a discipline that predates the current AI-chip cycle by decades. Its holdings span retailers, industrials, healthcare and travel names alongside technology, and quarter-to-quarter shifts of the magnitude seen in Micron, Sandisk, Airbnb and NewMarket are not unusual within a portfolio built around hundreds of positions and systematic rebalancing.
Market participants tracking 13F disclosures will likely watch whether other large holders follow similar patterns of trimming chip exposure while rotating into travel, software-security and specialty-chemical names, and whether upcoming earnings from major semiconductor companies validate or complicate the caution embedded in such moves. Analysts and portfolio managers quoted elsewhere in the market have offered competing views on whether the chip sector's recent weakness represents a durable repricing or a temporary pause within the broader AI investment cycle, though no consensus has emerged and any such views remain opinions rather than established outcomes.