Jeremy Grantham and GMO navigate shifting tech moats

Investment expert Jeremy Grantham and his firm, Grantham, Mayo, Van Otterloo & Co. (GMO), are navigating a shifting technological landscape. Grantham has noted that the economic moats previously protecting major technology hyperscalers—such as Alphabet, Meta, Microsoft, and Amazon—are being challenged as these companies transition from quiet monopolists to direct competitors, a shift accelerated by the rise of generative artificial intelligence.

In the latest reported quarter, GMO managed an equity portfolio valued at approximately $44.40 billion. The firm’s top 10 holdings account for roughly 41.20% of its assets, led by Microsoft Corp at 5.73%. Other significant holdings include Lam Research Corp, Alphabet Inc, and Apple Inc.

Notable portfolio adjustments include a massive increase in Nvidia shares, which rose by over 1,200%, and significant additions to KLA Corp and Mastercard. Conversely, the firm reduced its position in Alphabet by approximately 11.13%.