Eminence’s Exit from IBP: A Year of Outperformance

On November 14, 2025, the vaults of Eminence Capital, LP, opened to release their entire stake in Installed Building Products, a transaction that bore the weight of a thousand unspoken reckonings. The net change, a sum of $170.42 million, was not merely a number but a testament to the silent dialogue between capital and its fleeting allegiances.

Exited 945,101 shares, reducing position value by $170.42 million
The transaction accounted for approximately 2.07% of reported 13F assets under management
Post-sale stake stands at zero shares valued at $0
The position represented approximately 2.05% of AUM last quarter, marking a full liquidation of a significant prior holding

What happened

By the decree of the Securities and Exchange Commission, Eminence Capital, LP, laid down its arms against Installed Building Products (IBP 0.76%), surrendering all 945,101 shares. The net value of this withdrawal, calculated through the cold arithmetic of quarterly averages, amounted to $170.42 million. The fund, now bearing 46 positions, held $8.25 billion in U.S. equity assets, a ledger of ambition and restraint.

What else to know

This was no partial retreat but a total dissolution; the stake, once 2.1% of 13F assets under management, now hovers at 0%. The fund’s top holdings, a pantheon of titans, now include NASDAQ: AMZN, GTLB, WK, CPNG, and ATMU, each a monument to new faiths.

As of November 13, 2025, shares of IBP stood at $257.14, a 26.0% ascent over the year, outpacing the S&P 500 by 13.44 percentage points-a triumph of resilience against the encroaching fog of market indifference.

Company Overview

Metric	Value
Revenue (TTM)	$2.97 billion
Net Income (TTM)	$255.70 million
Dividend Yield	1.25%
Price (as of market close 2025-11-13)	$257.14

Company Snapshot

Installed Building Products, Inc. operates as a leviathan in the realm of insulation and complementary building products, its tendrils reaching into the U.S. residential and commercial construction markets. It is a colossus forged from the crucible of vertical integration, its business model a labyrinth of installation, distribution, and manufacturing, all in service to the builders of the nation.

The company’s offerings-insulation, sealants, garage doors, waterproofing, fire-stopping systems-form a mosaic of necessity, each piece a testament to the quiet labor that transforms bare frames into habitable sanctuaries. Its revenue, a river of $2.97 billion annually, is drawn from the sweat of its crews and the acumen of its acquisitions.

Foolish take

Eminence Capital’s departure from IBP is a riddle wrapped in a paradox. A year of outperformance, of a 26.0% rise, and yet the fund chose to sever its ties. This is not the act of a man abandoning a sinking ship, but of one securing his gains against the tide of uncertainty. In the grand theater of capital, such decisions are not merely financial-they are moral, a reckoning with the ephemeral nature of fortune.

IBP, for all its virtues, remains a creature of the cyclical, its destiny tethered to the whims of housing markets. Yet its story is one of transformation: from a modest insulation contractor in Ohio to a behemoth of the construction sector, its growth a symphony of acquisitions and execution. The question that lingers is whether this symphony will continue to play, or if the next movement will be a dissonant note of contraction.

To the investor, the future is a mirror. If IBP can sustain its pace of acquisition and maintain margins amid shifting tides, then Eminence’s decision may be less a verdict on the company’s prospects and more a reflection of its own horizon. But in a world where capital flees the light of success, the true test lies not in the exit, but in the endurance of those who remain.

Glossary

13F assets under management (AUM): The total value of U.S. equity securities reported by an institutional investment manager in SEC Form 13F filings.
Quarterly average prices: The average price of a security over a specific quarter, used to estimate transaction values.
Full liquidation: Selling all shares of a particular investment, resulting in a zero position.
Vertically integrated business model: A company structure combining multiple stages of production or distribution within a single organization.
Retrofit markets: Markets focused on upgrading or improving existing buildings rather than new construction.
Value-added services: Additional offerings that enhance the core product or service, providing extra benefits to customers.
TTM: The 12-month period ending with the most recent quarterly report.
Stake: The ownership interest or shareholding an investor holds in a company.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset held by an investor or fund.
Distribution (in business): The process of delivering products from manufacturers to end users or retailers.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a given period.

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2025-12-05 07:38