In a move that can only be described as a tidy exit, Seneca House Advisors has called it quits on its Diageo (DEO) position, offloading a total of 35,043 shares for approximately $3.53 million in Q3 of 2025. The full sale, announced in an SEC filing on October 10, 2025, marks the end of an era for the firm and, for all practical purposes, its financial interaction with the renowned spirits conglomerate.
What Happened
As is the way with these things, Seneca House Advisors made the decision to liquidate its Diageo holdings during the third quarter of the year. The sale, comprising 35,043 shares, was valued at $3.53 million, based on the average market price for the quarter. In plain English: they sold their entire stake and now report no exposure to Diageo. The curtain has fallen on this particular investment.
What Else to Know
With this sale, Seneca House Advisors has reduced its exposure to Diageo from a fairly modest 1.4% of its 13F assets to a solid, unambiguous zero. Diageo, once a part of the firm’s portfolio, is now relegated to the annals of “what used to be.”
Following this dramatic shift, here’s where the firm’s investments currently stand:
- NYSEMKT:RSP: $25.15 million (10.16% of AUM)
- NASDAQ:GOOGL: $16.39 million (6.60% of AUM) as of 2025-09-30
- NASDAQ:MSFT: $14.79 million (5.98% of AUM)
- NYSE:MKL: $14.64 million (5.92% of AUM) as of 2025-09-30
- NYSEMKT: IBDX: $12.03 million (4.86% of AUM) as of 2025-09-30
For those still keeping score, Diageo’s shares as of October 9, 2025, were valued at $95.41 each-a modest drop of 29.08% over the past year. This, of course, underperforms the S&P 500 by a rather substantial 45.04 percentage points. A decline that could make even the most optimistic investor wince.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $20.25 billion |
| Net Income (TTM) | $2.35 billion |
| Dividend Yield | 4.37% |
| Price (as of market close 2025-10-09) | $95.41 |
Company Snapshot
Diageo, as you may know, is a colossus in the world of alcoholic beverages. It offers an array of tipples-from Scotch whisky to gin, vodka, rum, tequila, and beyond. Famous brands such as Johnnie Walker, Smirnoff, Guinness, and Baileys form the backbone of its impressive portfolio. In other words, if you’ve ever poured yourself a drink, there’s a very good chance Diageo had a hand in its production.
Revenue flows into Diageo’s coffers primarily through the production, marketing, and sale of its branded spirits and beer. The company’s reach spans the globe, operating across North America, Europe, Africa, Latin America, the Caribbean, and Asia Pacific.
In short, Diageo is a well-established leader in the global beverage industry, a giant among giants, with a diversified portfolio and powerful brand recognition that stretches to the four corners of the earth. At least, in the world of booze.
Foolish Take
This has not been a vintage year for Diageo, it must be said. The company has been buffeted by geopolitical turmoil, shifting industry dynamics, and a host of other factors. Like a ship caught in a storm, Diageo has taken on water in ways it didn’t anticipate.
One such storm has been the impact of tariffs. Diageo, being a global player, imports much of its production from Europe and the U.K., and this year, it estimated that tariffs would siphon off about $150 million from its profits. This is the price of doing business in a world where protectionism has become the new normal.
On top of that, the broader alcoholic beverage industry has been facing its own set of woes. Beer and wine sales have been on a downward trajectory, and recent polls suggest Americans are drinking less. Whether this is a fleeting moment or the dawn of a more permanent shift is anyone’s guess. If it’s a temporary dip, Diageo might rebound with a bit of elbow grease and clever strategy. But if this is a longer-term trend, well, the company may need to rethink its future approach. The art of the pivot is one that requires a deft hand.
Glossary
13F reportable assets: These are the assets institutional investors must disclose quarterly to the SEC, detailing their holdings.
Assets under management (AUM): The total market value of investments managed by a firm on behalf of its clients.
Quarterly average price: The average price of a security during a specific quarter, used to estimate its transaction value.
Exposure: The percentage of a portfolio invested in a particular asset, sector, or market.
Regulatory filing: Official documents submitted to government agencies, such as the SEC, to disclose financial or operational information.
Dividend yield: The ratio showing how much a company pays in dividends each year relative to its share price.
Portfolio: A collection of financial assets-stocks, bonds, or funds-held by an investor.
Stake: The ownership interest or share an investor holds in a company.
TTM: The trailing twelve-month period, ending with the most recent quarterly report.
Underperforming: When an asset delivers lower returns than a benchmark or comparable investments over a given period.
As with all investments, the world of finance never fails to surprise, and perhaps that is what keeps it so endlessly fascinating. 🧐
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2025-10-12 23:38