On November 13, New York’s Hyperion Capital Advisors, with the audacity of a man buying a ticket on a sinking ship, acquired 540,000 shares of Vertex (VERX +0.30%)-a $13.39 million bet. One might call it a midlife crisis with a margin account.
What Happened
In a filing with the SEC, Hyperion declared a new position in Vertex, its latest acquisition as of September 30. The portfolio now boasts 62 reportable positions, a number suspiciously close to the number of excuses a broker might offer for a losing streak.
What Else to Know
This stake constitutes 7.16% of Hyperion’s U.S. equity assets. A tidy sum, one imagines, to buy a slice of calm in a market that seems to specialize in chaos.
Top holdings post-filing:
- NASDAQ: GOOGL: $35.93 million (19.2% of AUM)
- NYSE: ELV: $16.69 million (8.9% of AUM)
- NASDAQ: VERX: $13.39 million (7.2% of AUM)
- NYSE: ICE: $12.85 million (6.9% of AUM)
- NYSE: UNH: $12.44 million (6.7% of AUM)
As of Wednesday, Vertex traded at $20.03-a 63% plunge over 12 months. The S&P 500, meanwhile, sashayed upward by 15%. One might say the stock is conducting a solo dance in a theater where the audience has long since left for snacks.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Tuesday) | $20.03 |
| Market capitalization | $3.2 billion |
| Revenue (TTM) | $732.19 million |
| Net income (TTM) | ($53.58 million) |
Company Snapshot
- Vertex, the digital scribe of the modern age, offers tax determination, compliance, and reporting solutions. Its tools are as indispensable to corporations as a tax accountant is to a barista during tax season.
- Revenue streams include software licenses, SaaS subscriptions, and outsourcing services. A business model as predictable as a clockwork bureaucracy.
- It serves retail, communications, leasing, and manufacturing sectors. A veritable United Nations of corporate paperwork.
Vertex’s claim to fame? Automating tax compliance for large enterprises. With a mix of on-premise and cloud offerings, it straddles the line between analog tradition and digital ambition. Its industry-spanning expertise is less a superpower and more a well-practiced hustle.
Foolish Take
Vertex’s stock has been crushed since January, yet the business churns along-revenue up 12.7% YoY, cloud revenue surging 30%, and adjusted EBITDA at $43.5 million. A paradox so delicious it makes one wonder if the market has mistaken a steady horse for a deadbeat.
The selloff? Perhaps the result of decelerating net revenue retention and a collective yawn at midcap software. Management, ever the showmen, responded with a $150 million share repurchase program and $313 million in cash. A magician’s trick: turning red ink into green, if only on paper.
Hyperion’s bet places Vertex alongside Alphabet, Elevance, and UnitedHealth-a cabinet of curiosities for those who fancy durable cash flows over speculative moonshots. For long-term investors, the current valuation whispers of patience. Or perhaps it’s just the echo of a man in a suit saying, “Trust me, this time it’s different.”
Glossary
Assets under management (AUM): The total value of investments managed by a fund. A number often inflated by optimism.
13F reportable assets: Investments disclosed quarterly to the SEC. A bureaucratic ballet of transparency.
Net position change: The difference in shares held after a transaction. A ledger entry as thrilling as a tax audit.
Stake: Ownership in a company. A claim check on someone else’s dreams.
Position: The amount of a security held. A term that sounds riskier than it usually is.
Portfolio: A collection of investments. A curated chaos, if one is lucky.
Filing: A document submitted to regulators. A bureaucratic sonnet in dry language.
Market capitalization: Total value of a company’s shares. A number that dances to the whims of sentiment.
Implementation services: Help setting up software. A service as necessary as a life raft in a hurricane.
Software as a Service (SaaS): Online software accessed via subscription. The modern subscription box, but with fewer surprises.
Outsourcing services: Contracting external help. A business strategy as old as time, but with better spreadsheets.
TTM: The 12-month period ending with the latest quarter. A timeframe as precise as a politician’s promise.
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2025-12-24 21:38