On November 14, BeaconLight Capital, a fund with the subtlety of a wrecking ball, disclosed in an SEC filing that it had reduced its stake in Resideo Technologies (REZI +1.04%) by 175,624 shares. The gods of finance smile and frown in equal measure. So it goes.
What Happened
The fund’s remaining 645,028 shares were valued at $27.85 million, or 13.74% of its $202.73 million in reportable U.S. equity assets. A tidy sum, but not enough to buy a yacht or a sense of security. So it goes.
What Else to Know
After the sale, REZI remained BeaconLight’s largest position-13.74% of AUM. Previously, it was 10.33%. Progress! Or perhaps just arithmetic. The top five holdings now look like this:
- NYSE:REZI: $27.85 million (13.74% of AUM)
- NYSE:CSTM: $18.95 million (9.35% of AUM)
- NYSE:LNG: $14.13 million (6.97% of AUM)
- NYSE:SXT: $10.72 million (5.29% of AUM)
- NYSE:TECK: $10.26 million (5.06% of AUM)
As of Friday, REZI shares traded at $35.99, up 48% year-to-date. The S&P 500, meanwhile, sputtered upward by 15%. A triumph of specificity over generalization. So it goes.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $7.44 billion |
| Net Income (TTM) | $640.00 million |
| Price (as of Friday) | $35.99 |
| One-Year Price Change | 48% |
Company Snapshot
- Resideo sells thermostats, security panels, and sensors. It’s the kind of business that thrives when people forget to lock their doors and set their AC to 90°F. So it goes.
- Products & Solutions and ADI Global Distribution are the two segments. One sells stuff, the other delivers it. A yin and yang of paperwork. So it goes.
- Contractors, OEMs, and retail channels are the customers. A global web of people who want to feel safe and comfortable. Or maybe just warm. So it goes.
Resideo is a “leading provider” of residential comfort and security. A phrase that sounds like it belongs on a cereal box. Its smart home tech is a “strategic focus,” which is code for “we hope this works.” So it goes.
Foolish Take
Resideo’s latest quarter was stellar: $156 million in net income (up 680%), $229 million in adjusted EBITDA (up 21%), and gross margins near 30%. A numbers magician. Yet BeaconLight trimmed its stake. Why? Perhaps the fund, like a man who sold his car before the oil crisis, is practicing portfolio discipline. Or maybe it’s just tired of watching REZI outperform. So it goes.
Trimming a position in a booming stock isn’t always a betrayal of faith. Sometimes it’s a nod to gravity. Locking in gains while keeping a double-digit allocation is the activist’s art: balancing hubris and humility. Resideo remains the fund’s largest holding. A love letter with a postmark date. So it goes.
The broader picture? BeaconLight’s portfolio is heavy on industrials and infrastructure. Resideo, with its cash flow and asset base, fits neatly. Management expects $832 million in full-year adjusted EBITDA and a business separation. A plan as bold as a man who builds a spaceship in his garage. So it goes.
Glossary
13F reportable AUM: Assets that funds must report to the SEC. A bureaucratic dance. So it goes.
Stake: Ownership in a company. A claim on future profits, if any. So it goes.
Form 13-F: A quarterly SEC filing. A paperweight of compliance. So it goes.
AUM: The value of investments managed. A number that grows until it doesn’t. So it goes.
Position: A bet on a stock. A gamble with a calculator. So it goes.
Outperforming: Beating an index. A temporary victory. So it goes.
TTM: Twelve months ending with the latest quarter. A blink in time. So it goes.
Distribution: Getting products to customers. A logistical ballet. So it goes.
Segment: A company’s business unit. A silo with a budget. So it goes.
OEM: A company that makes parts for others. A supplier with a boss. So it goes.
Smart home products: Devices that automate your life. A modern alchemy. So it goes.
Building products sector: Construction materials and safety tech. A field where things fall down. So it goes.
Activist investing is a game of patience and nerve. Trim too early, and you miss the rally. Hold too long, and you become the joke. BeaconLight chose to trim. Whether it was wisdom or folly, only time will tell. But the story, as always, is a mix of hope and hubris. So it goes. 🤷♂️
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2025-12-29 01:43