Wasatch Divests Stakes
Wasatch Advisors LP Reduces Stakes Across Five Major Stocks in Second Quarter
Key Points
Beyond Wasatch's AxoGen sale, other institutional players adjusted AXGN holdings during the same period: Commonwealth Equity Services LLC increased its AxoGen stake by 1.8% in the fourth quarter, PNC Financial Services Group Inc. raised its position by 6.2% in the first quarter, and Arax Advisory Partners boosted its stake by 362.4% in Q4, highlighting broad institutional interest in the stock (overall institutional ownership around 80.29%).
Axos Financial shows a high level of institutional ownership (83.79%), with notable buyers including Ameriprise Financial, which increased its Axos stake by 8.6% in the second quarter, and others like Geode Capital Management and Charles Schwab Investment Management among significant holders.
Hamilton Lane is almost entirely owned by institutions (97.40%), with notable moves such as Royal Bank of Canada increasing its stake by 6.0% in Q1, and substantial percentage changes from Jones Financial Companies Lllp (+4,806.7%) and Amundi (+39,766.7%) in the recent quarters.
Nova Ltd. saw a director sale (Sarit Sagiv) of 454 shares on June 23 at an average price around $536.52, while Nova accounts for about 1.8% of Wasatch’s portfolio and sits as the 10th-largest holding; institutional ownership remains high at 82.99%.
Nu Holdings has attracted new institutional interest, with Norges Bank and Larch Capital Partners opening new stakes in Q4 valued at roughly $763.8 million and $605.8 million respectively; Jennison Associates increased its NU stake by 82.6%, and other funds like Squadra Investments and Atmos Capital also increased holdings, with hedge funds/institutional ownership at about 84.02% of shares.
Wasatch Advisors LP made sweeping cuts to five major stock positions in the second quarter, trimming billions in combined holdings across healthcare, finance, and tech, according to Ticker Report. The Salt Lake City-based investment firm slashed its Nova Ltd. stake by nearly 40%, its Hamilton Lane position by 34%, and its AxoGen holdings by more than 30%.
The moves signal a broad portfolio rebalancing by Wasatch, one of the largest active small-cap managers in the US. Despite the cuts, the firm still holds hundreds of millions of dollars across each of these companies.
Nova and Hamilton Lane See Steepest Reductions
Wasatch cut its Nova Ltd. position by 39.9%, bringing its stake down to 512,690 shares worth roughly $278.36 million, according to Ticker Report. Nova still ranks as Wasatch's 10th-largest holding, making up about 1.8% of its total portfolio. A Nova director, Sarit Sagiv, also sold 454 shares on June 23 at an average price of $536.52.
Hamilton Lane saw the second-biggest cut. Wasatch trimmed its stake by 34.3%, leaving it with 1,151,560 shares valued at about $90.78 million. Institutions own a striking 97.40% of Hamilton Lane shares. Notable moves by others include Jones Financial Companies, which grew its Hamilton Lane stake by 4,806.7%, and Amundi, which increased its position by an eye-popping 39,766.7%.
AxoGen and Axos Financial Cuts Draw Institutional Attention
Wasatch reduced its AxoGen stake by 30.2% to 1,295,949 shares, now worth around $59.86 million, per Ticker Report. Even as Wasatch sold, other institutions moved in. Arax Advisory Partners boosted its AxoGen position by 362.4% in Q4. Commonwealth Equity Services raised its stake by 1.8%, and PNC Financial Services added 6.2% in Q1. Overall institutional ownership in AxoGen stands at about 80.29%.
Axos Financial saw a smaller cut of 16.4%, leaving Wasatch with 515,576 shares worth about $50.21 million. Axos has high institutional ownership at 83.79%. Ameriprise Financial moved the other way, growing its Axos stake by 8.6% in Q2. Geode Capital Management and Charles Schwab Investment Management are also among the stock's largest holders.
Nu Holdings Cut but Draws Record Institutional Bets
Wasatch trimmed its Nu Holdings stake by 7.7% to 9,273,997 shares worth about $123.90 million, according to Ticker Report. The reduction was the smallest of the five cuts. Nu remains a crowded institutional trade, with hedge funds and institutions owning roughly 84.02% of shares.
While Wasatch pulled back, others piled in. Norges Bank opened a new Nu stake worth about $763.8 million in Q4. Larch Capital Partners also opened a new position worth roughly $605.8 million. Jennison Associates raised its Nu stake by 82.6%. Squadra Investments and Atmos Capital also added shares, signaling strong conviction in the Brazilian fintech giant despite Wasatch's exit.
Wasatch's Broader Selling Spree Spans Multiple Sectors
The five cuts are part of a wider pattern of selling by Wasatch in Q2. The firm also reduced its Wingstop stake by 34.2% and trimmed its Valvoline position by 24.0%, per Ticker Report. Smaller reductions hit Agilysys (down 1.7%) and NPK International (down 3.0%). The firm also cut its EPR Properties position by 2.3%, per Watchlist News.
Taken together, the moves suggest Wasatch is locking in gains and shifting its portfolio mix after a strong run in small- and mid-cap stocks. The firm has not publicly commented on the rationale behind the cuts.
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