Change of Heart? Hedge Fund Dumps 224K Shares of Full Truck Alliance, According to Latest Filing
Key Points
Sold 223,861 shares of YMM; estimated transaction value of approximately $2.77 million based on quarterly average price
Trade represented 3.97% of the fund's AUM
Post-sale holding: 272,619 shares valued at $3.54 million (5.1% of AUM) as of September 30, 2025
YMM position fell from 9.3% to 5.1% of fund AUM, placing it outside the fund's top five holdings
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On October 9, 2025, ABS Direct Equity Fund LLC disclosed it sold 223,861 shares of Full Truck Alliance (NYSE:YMM), an estimated $2.77 million trade based on average quarterly pricing.
What Happened
According to a filing with the U.S. Securities and Exchange Commission dated October 9, 2025, ABS Direct Equity Fund LLC sold 223,861 shares of Full Truck Alliance. The estimated value of the shares sold was approximately $2.77 million based on the average closing price for the quarter. The fund now holds 272,619 shares in Full Truck Alliance.
What Else to Know
This reduced the fund's stake in Full Truck Alliance to 5.1% of AUM, down from 9.3% the previous quarter.
Top holdings after the filing:
- NYSE:FMX: $8.90 million (12.7% of AUM)
- NASDAQ:PDD: $5.69 million (8.1% of AUM)
- NASDAQ:FLYW: $4.40 million (6.3% of AUM)
- NASDAQ:FIVN: $3.63 million (5.2% of AUM)
- NYSE:PRKS: $3.62 million (5.2% of AUM)
As of October 8, 2025, shares of Full Truck Alliance were priced at $13.07, up 34.1% over the past year. Shares of Full Truck alliance have outperformed the S&P 500 by 13.9 percentage points over the last 12 months.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $12.14 billion |
| Net income (TTM) | $4.18 billion |
| Price (as of market close October 8, 2025) | $13.07 |
| One-year price change | 34.1% |
Company Snapshot
Offers a digital freight platform connecting shippers and truckers, with services including freight listing, matching, brokerage, online transactions, credit solutions, insurance brokerage, and energy services.
Generates revenue primarily through transaction fees, value-added services, and technology solutions that facilitate efficient logistics operations.
Serves shippers and truckers throughout China.
Full Truck Alliance operates a digital freight platform in China, leveraging technology to connect shippers and truckers nationwide. The company offers a broad service portfolio within the Chinese logistics sector.
Foolish Take
ABS Direct Equity Fund, an American hedge fund, recently reduced its holdings of Full Truck Alliance stock by nearly $3 million. For the average investor, this may look like a significantly negative development for Full Truck Alliance stock -- but looks can be deceiving. Let's unpack the sale in the context of the fund's overall portfolio.
First, the fund's percentage share of Full Truck Alliance did decrease significantly, moving from 9.3% to 5.1%. However, shares have been rallying. They are up nearly 100% over the last three years. Therefore, it's entirely possible that the portfolio managers in charge are simply reducing their overall exposure to Full Truck Alliance stock -- and reallocating those funds to other names where they have higher conviction.
For the average investor, this move should be viewed as standard portfolio management. After all, the fund retains more than $3.5 million worth of Full Truck Alliance stock, making it the fund's 7th-largest position out of its 29 total holdings. In other words, take this sale with a grain of salt, there are too many mixed signals for us to draw a firm conclusion about the portfolio manager's strategy -- let alone the implications for the underlying stock.
Glossary
AUM (Assets Under Management): The total market value of all assets a fund or investment manager oversees.
Quarterly average price: The average price of a security over a three-month period, used for estimating transaction values.
Top holdings: The largest investments in a fund's portfolio, typically by market value or percentage of AUM.
Outperforming: Achieving better returns than a specific benchmark or index over a given period.
Filing: An official document submitted to a regulatory agency, often disclosing financial or ownership information.
Transaction fees: Charges collected for facilitating trades or services on a platform.
Value-added services: Additional offerings beyond core services that provide extra benefits to customers, often for a fee.
Brokerage: The business or service of acting as an intermediary between buyers and sellers, often for a commission.
TTM: The 12-month period ending with the most recent quarterly report.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Five9. The Motley Fool recommends Fomento Económico MexicanoB. De C.v. and United Parks & Resorts. The Motley Fool has a disclosure policy.
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