Hussman Divests Entire $4.65M Stake in Check Point Software

On November 3, 2025, Hussman Strategic Advisors revealed that it had severed all ties with Check Point Software Technologies Ltd. (CHKP), liquidating 21,000 shares valued at a substantial $4.65 million. A stark move, one that makes you question the broader implications of the so-called “market wisdom.” One wonders what led the fund to pull out entirely from a company that once formed a part of its diversified armor.

What transpired?

In a filing with the Securities and Exchange Commission on November 3, 2025, Hussman Strategic Advisors disclosed the complete offloading of its position in Check Point Software Technologies Ltd. The 21,000 shares, once representing a fraction of the firm’s portfolio, are now sold, eliminating the position with an estimated $4,646,250 in proceeds.

What else should we note?

With this move, Hussman Strategic Advisors wiped Check Point Software from its books. The cybersecurity company now holds zero influence in the fund’s 13F assets. The stock, which had previously represented about 1.1% of the firm’s assets, is now a distant memory. In a world where fortunes can shift with the blink of an eye, this one seemed to pass under the radar with little fanfare.

The top holdings following this shift are now:

UNFI: $5.93 million (1.3% of AUM)
CPB: $5.31 million (1.2% of AUM)
CHTR: $5.20 million (1.1% of AUM)
B: $5.01 million (1.1% of AUM)
TGTX: $4.55 million (1% of AUM)

At the time of the sale, Check Point Software’s stock was priced at $194.05 per share, showing a 4% increase year-to-date. But let’s not mistake this for anything resembling a victory, for this modest climb fails to meet the broader market’s pace, trailing the S&P 500 by a sizable 12.6 percentage points. How much weight can we place on such a performance?

Company Overview

Metric	Value
Price (as of November 3, 2025)	$194.05
Market Capitalization	$21.01 billion
Revenue (TTM)	$2.68 billion
Net Income (TTM)	$1.01 billion

Company Snapshot

Check Point Software Technologies Ltd. offers a comprehensive range of cybersecurity solutions, including network security, endpoint protection, and cloud defense.
Revenue is primarily derived from security gateways, technical support services, and a broad global channel network of resellers and distributors.
The company serves large enterprises, service providers, and businesses of all sizes, positioning itself as a pillar of defense in the digital era’s cyber battleground.
Check Point, with over 6,600 employees, stands as a global cybersecurity giant, advocating integrated security solutions designed to safeguard organizations from emerging cyber threats.

Foolish take

The decision of Hussman Strategic Advisors to offload its $4.65 million stake in Check Point Software Technologies feels somewhat disconnected from the grand narrative that the company represents. This isn’t so much about a radical failure of Check Point’s model, nor is it a statement about the company’s inherent flaws. It is, perhaps, a reflection of the cold calculus that governs such decisions in the world of high finance-portfolio rebalancing. With an uninspiring 4% growth in 2025, the stock simply failed to stand out amidst the fast-moving, high-growth tech stocks that have commanded investors’ attention. In the ruthless game of wealth, there is no room for slow burners.

For Check Point, this is far from the end. The company remains a stalwart player in the cybersecurity field, generating a reliable stream of income from security subscriptions. Its steady balance sheet and dedication to cutting-edge threat prevention technologies keep it afloat in an otherwise volatile market, where upstarts rush in with grander promises and fewer guarantees. But in the end, it is not the aggressive risk-takers who often come out on top. It’s the ones who manage to survive, who keep their feet planted firmly on the ground while others crash and burn.

Hussman’s decision to exit, therefore, speaks less to the company’s future and more to the changing tides of financial strategy. It’s about reallocating capital to where the promise of higher returns seems more tangible, even at the cost of cutting loose a solid, reliable enterprise. It is not a gamble against Check Point-it is simply the cold, hard logic of capital management at play.

Glossary

13F reportable assets: These are assets that institutional investors must report to the SEC, detailing their holdings in U.S. securities on a quarterly basis.
Assets under management (AUM): The total value of assets held and managed by a financial institution or fund on behalf of clients.
Full exit: The complete liquidation of a holding, reducing an investor’s position to zero.
Stake: The percentage of ownership that an investor holds in a company or security.
Portfolio: A collection of financial assets such as stocks, bonds, and cash managed by an individual or institution.
Channel network: A system of third-party resellers, distributors, or partners through which products or services are sold.
Security gateways: Devices or software solutions used to regulate network traffic and protect systems from cyber threats.
Endpoint security: Protection against cyber threats targeting individual devices such as computers, smartphones, and tablets.
Cloud security: Measures to protect data and services hosted in cloud environments.
Advanced threat prevention: Security mechanisms designed to detect and block sophisticated attacks before they can inflict harm.
TTM: Trailing Twelve Months, the period covered by the most recent financial report.

In the end, it is not simply about making money-it’s about understanding the ebb and flow of capital in a world that doesn’t care for the weak or the hesitant. 🤔

2025-11-03 23:12