The RealReal: A Trimmed Stake & My Anxieties

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Right. So, Kanen Wealth Management, apparently not entirely immune to the siren song of profit-taking, has reduced its holding in The RealReal (REAL +3.41%). By 2,338,820 shares. Which translates to roughly $30.54 million. Honestly, it’s enough to give anyone palpitations. I mean, a stock up 81% in a year? It’s practically begging for a correction. Or, you know, a full-blown crash. I’ve been watching it, obsessively, naturally.

The filing, dated February 18, 2026, revealed the sale. The fund’s stake shifted by $15.29 million, accounting for both the shares sold and, crucially, the stock price fluctuations. It’s all so…dynamic. It’s enough to make one long for the stability of government bonds. Though, let’s be honest, that’s just a fantasy.

After the sale, Kanen still holds 8.91% of The RealReal. Which, I suppose, is reassuring. A little. Here’s a snapshot of their top holdings, as of the filing:

  • NYSE: COMP: $67.59 million (20.9% of AUM)
  • NASDAQ: ALLT: $45.04 million (13.9% of AUM)
  • NYSE: BNED: $30.81 million (9.5% of AUM)
  • NASDAQ: REAL: $29.34 million (8.9% of AUM)
  • NASDAQ: INSE: $24.84 million (7.7% of AUM)

And the share price? As of Thursday, $12.39. Eighty-one percent up. It’s almost…vulgar. Compared to the S&P 500’s measly 16%, it feels like a different universe. I’ve been telling myself it’s a perfectly rational surge, based on solid fundamentals. But deep down, I suspect it’s just…momentum. And momentum, as we all know, is a fickle mistress.

The Numbers, Because We Must

Metric Value
Revenue (TTM) $662.79 million
Net Income (TTM) ($71.47 million)
Market Capitalization $1.5 billion
Price (as of Thursday) $12.39

So, The RealReal. Essentially, a very fancy online consignment shop. They deal in pre-owned luxury goods. Women’s, men’s, jewelry, the whole shebang. They make money by taking a cut of each sale. It’s a good business model, in theory. Leveraging the desire for luxury without the full price tag. And the authentication process is crucial. Nobody wants to buy a fake Chanel bag, do they? It’s the trust factor that really matters.

What Does it All Mean?

Honestly? I’m slightly panicked. A small-cap stock surging like this… it always feels precarious. Portfolio managers have a choice: ride the wave or cash out. Kanen’s decision feels… sensible, actually. It’s like they’re saying, “We appreciate the gains, but let’s not get greedy.” Which is a surprisingly mature attitude, given the current market climate.

The company just announced some impressive numbers: gross merchandise value up 22% to $616 million. Revenue climbed 15% to $693 million. Adjusted EBITDA improved to $42 million. And active buyers are up 9% year over year. It’s all very… positive. But still. I keep waiting for the other shoe to drop.

Kanen’s portfolio tends to be concentrated in small and mid-caps. They like to take risks. Recycling capital from a winner like The RealReal into other idiosyncratic names fits their strategy. It’s…logical. But doesn’t make me feel any better.

For long-term investors, the question is durability. Can The RealReal sustain this growth? Can they keep expanding margins? If they can, then today’s volatility might not matter so much. But if they can’t… well, let’s just say I’ll be revisiting my emergency exit strategy.

Units of Cryptocurrency Lost: 2. Hours Spent Watching Charts: 10. Number of Panicked Texts to Friends: 37. Must. Remain. Calm.

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2026-02-27 00:53