Breaking down the stocks Stockbridge bought, sold, and held in Q3 2025, including their holdings at the end of the quarter. All data sourced from Stockbridge's 13F filed on November 14, 2025.
Who is Stockbridge?
Stockbridge is the public equity investment arm of Berkshire Partners, a Boston-based private equity firm established in 1984. The firm focuses on building long-term concentrated positions in high-quality growth companies with sustainable competitive advantages. Stockbridge leverages Berkshire's extensive private equity experience to identify public companies with exceptional management teams and compelling business models.
Berkshirepartners.com/stockbridge
Wikipedia
Interview with Stockbridge's Rob Small on Transdigm
Q3 '25 13F filed with SEC
Holdings in Q3 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| TDG | TransDigm | 13.4% | Trimmed (-1%) | $692.27M |
| TSM | Taiwan Semiconductor | 11.5% | Trimmed (-4%) | $594.46M |
| AMZN | Amazon | 10.3% | Trimmed (-2%) | $532.8M |
| MSFT | Microsoft | 9.3% | Trimmed (-8%) | $482.11M |
| VMC | Vulcan Materials | 8.3% | Trimmed (-2%) | $429.6M |
| WCN | Waste Connections | 7.6% | Added (+5%) | $392.83M |
| VEEV | Veeva | 7.5% | Trimmed (-16%) | $389.14M |
| NOW | ServiceNow | 7.5% | Added (+97%) | $386.33M |
| DE | Deere | 7.0% | Trimmed (-5%) | $364.6M |
| KLAC | KLA | 6.5% | NEW | $335.09M |
| GWRE | Guidewire Software | 4.6% | Trimmed (-17%) | $238.91M |
| HLT | Hilton | 4.4% | Trimmed (-32%) | $230.11M |
| TMO | Thermo Fisher | 1.9% | Trimmed (-66%) | $100.68M |
| KLAR | Klarna | 0.1% | NEW | $3.01M |
Current Investment Strategy
Stockbridge, the public equity arm of Berkshire Partners, maintained its concentrated portfolio approach in Q3 2025 with a highly focused roster topped by aerospace parts maker Transdigm and casino operator Red Rock Resorts, while initiating positions in semiconductor equipment leader KLA Corporation and Swedish fintech Klarna following its September IPO. The Boston-based firm, which manages roughly $5.8 billion across fewer than 15 holdings, continues to leverage private equity-style due diligence to build long-term stakes in high-quality companies with sustainable competitive advantages and strong management teams, spanning sectors from aerospace and consumer discretionary to technology and financial services.
New Investments
KLA KLAC
Stockbridge bought $335.09M of KLA in Q3 2025. KLA demonstrated exceptional performance in Q3 FY2025 with record revenue of $3.06 billion, representing 30% year-over-year growth that exceeded guidance midpoints across both revenue and earnings. The Semiconductor Process Control segment, contributing 89% of total sales, benefited from robust demand for advanced logic, high-bandwidth memory (HBM), and advanced packaging, with notable strength in Taiwan and Korea. The company is clearly on an accelerating trajectory, with substantial earnings growth and margin expansion indicating strong market leadership and operational execution despite near-term tariff headwinds.
- Non-GAAP diluted EPS surged 59.9% year-over-year to $8.41, beating Zacks Consensus Estimate by 4.34%.
- Revenue increased 29.8% YoY to $3.06 billion, with product revenues climbing 35.3% driven by wafer inspection strength.
- Non-GAAP operating margin expanded to 44.2% while free cash flow totaled $990 million, enabling $507 million in shareholder buybacks.
Klarna KLAR
Stockbridge bought $3.01M of Klarna in Q3 2025. Klarna, following its September 2025 NYSE listing, is positioned for strong near-term growth with 26% year-over-year revenue growth projected in Q3 2025 to $889 million, driven by resilient consumer spending and expanding merchant adoption. The company is successfully diversifying revenue streams with interest income surging 51% to $263 million as it leans into higher-margin lending products amid intensifying competition from Affirm and Block's Afterpay. User engagement metrics remain robust with active users expected to grow 30% to 114 million and gross merchandise value increasing 21% to $31.7 billion, signaling strong market demand for its pay-later offerings.
- Q3 2025 revenue projected at $889 million, representing 26% YoY growth driven by transaction volume expansion and lending momentum.
- Interest income forecast to surge 51% to $263 million, reflecting higher lending volumes and improved monetization of pay-later loans.
- Active users expected to reach 114 million, up 30% YoY, with 'Pay Later' segment GMV projected to grow 22% to $25 billion.
Added, Trimmed, and Exited
Added
Stockbridge significantly increased two positions: nearly doubling ServiceNow (NOW) by adding 206,478 shares (+97% position size increase) and modestly expanding Waste Connections (WCN) by 96,753 shares (+5%).
What it means: The aggressive accumulation of ServiceNow, which has already delivered a 76% return, signals strong conviction in enterprise software's AI-driven transformation and the company's dominance in IT service management. Meanwhile, the incremental addition to Waste Connections suggests opportunistic accumulation in a defensive essential services business, maintaining exposure to steady cash-flow generators despite near-term underperformance.
Trimmed
Stockbridge reduced ten positions, with the largest cuts to Hilton (HLT) (-420,442 shares, -32% of position), Thermo Fisher (TMO) (-404,367 shares, -66% of position), Veeva (VEEV) (-255,060 shares, -16% of position), and Guidewire Software (GWRE) (-208,766 shares, -17% of position). Notable but smaller trims included Taiwan Semiconductor (TSM), Microsoft (MSFT), Amazon (AMZN), Deere (DE), Vulcan Materials (VMC), and TransDigm (TDG).
What it means: The firm appears to be executing disciplined portfolio rebalancing, harvesting gains from winners like Taiwan Semiconductor (+18% return) and Vulcan Materials (+16% return) while cutting losses in underperformers like Thermo Fisher (-59% return) and Hilton (-34% return). The near-complete exit from Thermo Fisher suggests diminishing confidence in the life sciences tools sector's recovery timeline, while substantial reductions in software names like Veeva and Guidewire may reflect valuation discipline amid slowing growth. Notably, even mega-cap positions Microsoft and Amazon were trimmed, potentially funding the major new KLA semiconductor position.
Exited
Stockbridge fully exited no positions during Q3 2025.
Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.
