Nitorum Capital, a fund that once believed in Primo Brands with the fervor of a cultist, sold 420,586 shares-$18.53 million worth-according to an SEC filing. The move smells like resignation, not panic.
What Happened
In Q3, Nitorum’s stake shrunk from 5.39% to 3.14% of its reportable assets. By September 30, the remaining position was valued at $17.85 million. Investors, like gods with poor aim, often sell when hope feels heavier than money.
What Else to Know
Primo Brands now lingers outside Nitorum’s top five holdings. The fund’s heart belongs to MLM, CHDN, MNKD, DELL, and RBA-companies that, like ex-lovers, demand less drama and more dividends.
- NYSE:MLM: $50.13 million (8.8% of AUM)
- NASDAQ:CHDN: $45.38 million (8.0% of AUM)
- NASDAQ:MNKD: $35.24 million (6.2% of AUM)
- NYSE:DELL: $33.38 million (5.9% of AUM)
- NYSE:RBA: $31.74 million (5.6% of AUM)
Primo’s stock, trading at $16.36, has tumbled 47% in a year. The S&P 500, meanwhile, sips champagne and laughs. Markets are cruel hosts, often rewarding those who arrive late to the party.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $6.51 billion |
| Net Income (TTM) | ($84.60 million) |
| Dividend Yield | 2.4% |
| Price (as of Tuesday) | $16.36 |
Company Snapshot
- Primo sells water, filters, and coffee. It’s the kind of business that could thrive if people remembered how to drink.
- It delivers to homes, businesses, and retailers. A noble mission, if you ignore the math.
Primo markets itself as a “leading provider” of water solutions. Its direct-to-consumer model is efficient, its distribution network broad. But even the most elaborate hydrants can’t drown debt or integration costs.
Foolish Take
Nitorum’s exit is a sigh, not a scream. Primo’s Q3 net sales rose 35%, bolstered by a merger. Adjusted EBITDA hit $404.5 million, margins widened to 22.9%. These numbers gleam like a mirage in a desert of red ink. Yet the stock’s 50% drop whispers doubts: Is this growth real, or just a magician’s trick with accounting hats?
Operating income fell. GAAP net income flounders behind adjusted figures, burdened by amortization and restructuring. Nitorum, a fund that favors “asset-heavy, cash-generative” businesses, is trimming exposure. Not out of fear, but arithmetic. Primo’s no longer a sleepy staples story-it’s a circus with a tiger named “free cash flow.” And the tiger hasn’t eaten in weeks.
So it goes.
Glossary
13F: A filing by funds to the SEC. Mandatory transparency, or bureaucratic theater? You decide.
AUM: The total value of a fund’s investments. Often higher than a CEO’s IQ.
Reportable Assets: Investments that must be disclosed. Like your ex’s new salary.
Stake: Ownership in a company. Sometimes worth less than a used car.
Top Holdings: A fund’s largest bets. Frequently wrong.
Dividend Yield: A promise wrapped in a percentage. Promises are like fireworks: bright, brief, and occasionally explosive.
Direct-to-Consumer Model: Selling directly to customers. A noble idea, if you ignore shipping delays.
Distribution Network: A system to get products to people. Often clogged with bureaucracy.
TTM: Twelve months ending with the latest quarter. A time capsule for financial grief.
Markets are a stage where hope and fear perform interpretive dance. Primo Brands is the encore act. 🌊
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2025-12-24 02:42