Kawa Capital Exits Delek Position

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On January 21, 2026, Kawa Capital Management, Inc. disclosed a complete divestiture of its holdings in Delek US Holdings (DK +2.45%), representing the sale of 200,000 shares. Based on prevailing quarterly average pricing, the transaction yielded an estimated $6.45 million.

Position Liquidation

Regulatory filings indicate that Kawa Capital Management, Inc. executed a full exit from its 200,000-share position in Delek US Holdings during the fourth quarter of 2025. The realized value of the transaction, calculated using the quarter’s average share price, approximated $6.45 million. This liquidation effectively reduced the position’s contribution to the fund’s net asset value by the same amount. Prior to the sale, the Delek US Holdings position represented 11.7% of Kawa Capital’s total assets under management.

Portfolio Implications

The sale of Delek US Holdings has eliminated a significant allocation within Kawa Capital’s 13F portfolio. As of the filing date, the position constitutes zero percent of the fund’s assets under management.

Current top holdings within the portfolio, as of the filing, are as follows:

  • NYSE:BDN: $15.73 million (36.37% of AUM)
  • NYSE:ONL: $12.54 million (28.99% of AUM)
  • NYSE:ARE: $7.93 million (18.33% of AUM)
  • NYSE:VALE: $7.05 million (16.31% of AUM)

As of January 20, 2026, Delek US Holdings shares were trading at $26.68, reflecting a 45.47% increase over the past year. This performance represents a 28.34 percentage point outperformance relative to the S&P 500 index.

Company Overview

Metric Value
Revenue (TTM) $10.67 billion
Net Income (TTM) ($453.50 million)
Dividend Yield 3.63%
Price (as of market close January 20, 2026) $26.68

Business Profile

  • Delek US Holdings engages in the production and marketing of refined petroleum products, including gasoline, diesel, aviation fuel, and asphalt. The company also operates a network of convenience retail stores primarily located in West Texas and New Mexico.
  • Revenue generation is derived from integrated operations encompassing crude oil refining, logistics (pipelines, storage terminals), and retail fuel/merchandise sales.
  • The company serves a diverse customer base including oil companies, independent refiners, marketers, distributors, transportation companies, government entities, and retail fuel consumers.

Delek US Holdings, Inc. represents a diversified downstream energy enterprise with a substantial presence in oil refining, logistics infrastructure, and retail fuel distribution across the southern United States. The company’s integrated infrastructure – including four refineries, extensive pipeline networks, and a large retail footprint – is intended to drive operational efficiency and expand market reach. Strategic focus is placed on capturing value across the entire supply chain, from crude oil sourcing to end-consumer sales, positioning the company competitively within the energy sector.

Transaction Analysis

Kawa Capital Management, a Florida-based alternative asset manager, has fully exited its position in Delek US Holdings. An assessment of the implications for retail investors is warranted.

Delek’s operations are situated within the ‘downstream’ segment of the energy sector. As such, margins are inherently compressed and subject to considerable volatility based on a range of macroeconomic and industry-specific factors. Indeed, Delek’s quarterly operating margin has fluctuated significantly, ranging from a high of 11.3% to a low of -7.5% over the past year. The five-year average operating margin stands at a modest 0.5%.

This pattern has resulted in a pronounced whipsaw effect for investors. Over the past five years, Delek shares have generated a total return of 60%. However, these gains have been accompanied by substantial volatility, including periods of significant price appreciation and multiple drawdowns exceeding 30%.

In summary, Delek US Holdings is not without risk. While the stock has demonstrated the capacity for substantial returns during periods of positive momentum, its inherent volatility may render it unsuitable for investors with a low risk tolerance or a preference for stable, long-term investments. The stock may be more appropriately suited to traders with the capacity to actively manage risk and capitalize on short-term price fluctuations.

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2026-01-22 18:42