Value-Focused Portfolio Shift
USA Financial Formulas Rebalances Portfolio, Prioritizing Value, Fixed Income, and Trimming Growth.
Key Points
EVP W. Bradford Hu sold 9,758 shares of State Street (STT) on Friday, July 24, at an average price of $184.52, for a total value of $1,800,546.16. After the sale, Hu owned 49,794 shares valued at approximately $9,187,988.88, representing a 16.39% decrease in their STT stake.
USA Financial Formulas’ largest holding is iShares S&P Small-Cap 600 Value ETF (IJS), accounting for about 20.1% of the portfolio with 927,820 shares valued at roughly $109.9 million.
In related activity around State Street, several other institutional investors increased their STT positions in Q1: IFM Investors raised its stake by 9.7% to 84,534 shares (worth about $10.7 million), New York State Teachers Retirement System increased to 303,919 shares (about $38.464 million) after adding 26,862 shares, and Illinois Municipal Retirement Fund upped its stake by 18.3% to 85,775 shares (about $10.856 million).
iShares S&P 500 Growth ETF (IVW) remains a relatively small slice of the portfolio after a 94.5% cut, with 29,041 shares worth about $3.285 million, about 0.6% of the portfolio and making IVW the 13th biggest holding; IVW was noted to open around $141.98, with a 1-year range of $108.13 to $143.26 and a market cap near $77.5 billion.
USA Financial Formulas made a notable move in the first quarter, opening a new stake in State Street Corporation (STT) with 5,007 shares valued at roughly $634,000, according to Watchlist News. The firm is reshaping its portfolio — shifting toward fixed-income and small-cap value funds while slashing exposure to growth and emerging market assets.
The biggest change: USA Financial Formulas made iShares S&P Small-Cap 600 Value ETF (IJS) its largest holding. It now owns 927,820 shares worth about $109.9 million — roughly 20.1% of the entire portfolio.
New State Street Stake Joins a Wave of Institutional Buying
USA Financial Formulas is not the only institution adding State Street shares. Several other major buyers moved into STT during Q1, according to Watchlist News. IFM Investors raised its stake by 9.7% to 84,534 shares worth about $10.7 million. New York State Teachers Retirement System added 26,862 shares, bringing its total to 303,919 shares valued at roughly $38.5 million. Illinois Municipal Retirement Fund lifted its position by 18.3% to 85,775 shares, worth about $10.9 million.
Inside State Street itself, not everyone is holding. EVP W. Bradford Hu sold 9,758 shares on July 24 at an average price of $184.52 per share. The total sale came to $1,800,546. After the sale, Hu still owned 49,794 shares worth about $9.2 million — but his stake shrank by 16.39%.
Small-Cap Value ETF Becomes the Portfolio's Anchor
The firm's biggest bet is now on small-cap value stocks. Its 927,820-share position in IJS is worth about $109.9 million and makes up more than one-fifth of the portfolio. This move signals a preference for cheaper, smaller U.S. companies over high-flying growth stocks.
USA Financial Formulas also added to its iShares 7-10 Year Treasury Bond ETF (IEF) position. That move deepens the firm's fixed-income exposure — meaning it is putting more money into bonds, which tend to be safer and steadier than stocks during uncertain markets.
Growth and Emerging Market Exposure Slashed Dramatically
The firm made sharp cuts on the growth side. It trimmed its iShares MSCI Emerging Markets ETF (EEM) position by about 95%, selling over 1.13 million shares. It now holds roughly 60,000 shares. Emerging markets funds track stocks in developing countries like China, Brazil, and India — and this cut suggests the firm sees less opportunity there right now.
The iShares S&P 500 Growth ETF (IVW) also took a hit. USA Financial Formulas sold the vast majority of that position — a cut of 94.5%. Only 29,041 shares remain, worth about $3.285 million. That makes IVW just 0.6% of the portfolio, ranking as the 13th largest holding. IVW itself trades near its one-year high, with a range of $108.13 to $143.26 and a market cap close to $77.5 billion.
Corporate Bond Holdings Also Cut Nearly in Half
The firm did not just trim equities. It also reduced its stake in the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) by 45.1% in Q1, according to Ticker Report. It now holds 128,238 shares. LQD tracks high-quality corporate bonds — debt issued by large, stable companies. Cutting this position suggests the firm is being selective even within fixed income.
Taken together, these trades paint a clear picture. USA Financial Formulas is moving money away from growth stocks, emerging markets, and corporate bonds. It is betting instead on small-cap value stocks and U.S. Treasury bonds — a more defensive and value-focused strategy heading into the rest of 2025.
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