Matthews International Capital Management Dumps $18 Million Worth of Sea Limited (NYSE:SE) Shares: Has the Stock Run Too Far?
Key Points
Matthews International Capital Management sold 106,055 shares of Sea Limited; estimated trade value of approximately $18.17 million.
The transaction represented a 4.23% change in reportable 13F assets under management for the quarter.
Post-sale, Matthews holds 213,226 shares valued at $38.11 million as of September 30, 2025.
Sea Limited remains the fund’s 2nd-largest holding, accounting for 8.87% of AUM as of September 30, 2025.
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On October 16, 2025, Matthews International Capital Management disclosed the sale of 106,055 shares of Sea Limited (NYSE:SE) in Q3 2025.
This was an estimated $18.17 million trade based on average quarterly pricing for Q3 2025.
What happened
According to a filing with the Securities and Exchange Commission dated October 16, 2025, Matthews International Capital Management sold 106,055 shares of Sea Limited in Q3 2025.
The estimated value of the transaction was $18.17 million.
Following the trade, the fund’s position in Sea Limited stood at 213,226 shares as of September 30, 2025, valued at $38.11 million at quarter-end.
What else to know
The fund reduced its stake in Sea Limited to 8.87% of 13F AUM, maintaining it as its 2nd-largest holding.
Matthews' top holdings after the filing:
- PDD Holdings: $65.27 million (15.3% of AUM)
- Sea Limited:SE: $38.11 million (8.9% of AUM)
- Legend Biotech: $33.54 million (7.9% of AUM)
- Trip.com Group: $29.19 million (6.8% of AUM) as of September 30, 2025
- Kanzhun: $24.06 million (5.6% of AUM) as of September 30, 2025
As of October 16, 2025, shares of Sea Limited were priced at $162.65, up 63.68% over the last year, outperforming the S&P 500 by 54 percentage points over the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2025-10-16) | $162.65 |
| Market Capitalization | $95.24 billion |
| Revenue (TTM) | $19.42 billion |
| Net Income (TTM) | $1.20 billion |
Company snapshot
Sea Limited operates in three main segments: digital entertainment (Garena), e-commerce (Shopee), and digital financial services (SeaMoney).
Its primary customer base includes consumers and small-to-medium businesses in Southeast Asia, Latin America, and other international markets seeking digital entertainment, online shopping, and financial solutions.
The company is headquartered in Singapore and employs more than 80,000 people worldwide.
Sea Limited is a leading digital platform company with significant scale in Southeast Asia and an expanding global reach. Its integrated ecosystem of gaming, e-commerce, and digital financial services offers diversified revenue streams.
Foolish take
Matthews International Capital Management loaded up on Sea Limited stock in early 2024 when it traded between $50 and $70 per share, making it a 9% position at that time.
Since then, Sea's stock has tripled, and Matthews has reduced the number of shares it owns in the company by two-thirds.
Despite this heavy selling after Sea's ascension, the stock still accounts for 9% of Matthews' portfolio. With this perspective in mind, it looks like Matthews' selling was more about rebalancing its portfolio than it was an indictment of Sea's operations.
Had the firm not sold any of its Sea shares from 2023, the company would account for nearly one-fourth of its AUM today.
That said, Sea still remains an important holding for Matthews as its second-largest position.
There is a lot to love about the company, as it reminds me of a Southeast Asian version of MercadoLibre -- but with the added bonus of a gaming segment.
Growing sales by 29% over the last year and now consistently generating positive net income and free cash flow, Sea remains a promising growth stock, so it makes sense for Matthews to keep holding its remaining shares.
Trading at 41 times forward earnings, Sea is slightly expensive, but could quickly outgrow this valuation, especially as it is firing on all cylinders right now.
Glossary
13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable 13F assets: The portion of a fund's assets that must be disclosed in 13F filings, typically U.S.-listed equities.
Quarter-end: The final day of a fiscal quarter, often used as a reference point for financial reporting.
Outperforming: Achieving a higher return than a benchmark index or comparable investment.
Filing: An official document submitted to a regulatory authority, such as the SEC, containing required disclosures.
Digital financial services: Financial products and services delivered through digital platforms, such as online payments or digital wallets.
Integrated ecosystem: A group of interconnected products or services designed to work together within a company.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in Sea Limited. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool has a disclosure policy.
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