Clio Asset Management Liquidates $4 Million Builders FirstSource (NYSE: BLDR) Position: Should Investors Sell Too?
Key Points
Clio Asset Management sold 30,652 shares of Builders FirstSource for an estimated $3.58 million, based on the average price for Q3 2025.
Change represented 2.7% of Clio Asset Management’s reportable 13F assets under management.
Post-sale, the fund holds zero shares valued at $0.
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Clio Asset Management LLC fully exited its position in Builders FirstSource (NYSE:BLDR) during Q3 2025, selling 30,652 shares in a trade estimated at ~$3.58 million.
What happened
According to a Securities and Exchange Commission (SEC) filing dated October 21, 2025 (link), Clio Asset Management sold its entire stake of 30,652 shares in Builders FirstSource during Q3 2025.
The estimated transaction value was approximately $3.58 million, based on the average price for the quarter ended September 30, 2025.
The sale reduced the fund's holdings in the company from 2.8% of AUM (as of Q2 2025) to zero.
What else to know
Clio's top holdings after the filing:
- O'Reilly Automotive: $26.80 million (19.9% of AUM) as of September 30, 2025
- Autozone: $16.19 million (12.0% of AUM) as of September 30, 2025
- Ferguson Enterprises: $13.37 million (9.9% of AUM) as of September 30, 2025
- Berkshire Hathaway Class B: $12.72 million (9.4% of AUM) as of September 30, 2025
- Hilton Worldwide: $11.51 million (8.5% of AUM) as of September 30, 2025
As of October 20, 2025, shares of Builders FirstSource were priced at $122.46, down 34% over the past year and underperforming the S&P 500 by 53 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $15.94 billion |
| Net income (TTM) | $756.32 million |
| Price (as of market close 2025-10-20) | $122.46 |
| One-year price change | -33.75% |
Company Snapshot
Builders FirstSource offers a broad portfolio of building materials, manufactured components, and construction services, including lumber, trusses, wall panels, doors, windows, siding, gypsum, insulation, and turnkey framing solutions.
It operates an integrated supply and manufacturing model, generating revenue through direct sales of building products and value-added installation and construction services.
The company serves professional homebuilders, subcontractors, remodelers, and consumers across the United States.
Builders FirstSource manufactures and supplies building materials and construction services across the United States.
Its scale and diversified product mix position it as a key partner for homebuilders and contractors seeking comprehensive building solutions.
Foolish take
After making Builders FirstSource a 6% portion of its portfolio early in 2024, Clio Asset Management has now completely sold out of the stock.
Tied to the highly cyclical housing industry in the United States, Builders FirstSource delivered 10-bagger returns over the last decade. However, the stock has basically round-tripped back to where it was two years ago, and trades 41% below its all-time high.
Builders FirstSource has now reported 12 consecutive quarters of sales growth declines as the U.S. housing market has stagnated somewhat due to higher mortgage rates.
While the Fed has started to lower interest rates -- and mortgage rates could eventually fall in tandem -- there's no guarantee this leads to an immediate turnaround in Builders FirstSource's stock. And it looks like Clio doesn't want to wait any longer for a turnaround.
I'd argue that Builders FirstSource is an intriguing stock for investors interested in the housing industry, as it is a leading supplier of building products and prefabricated components.
However, even after its slide, the stock trades at a valuation above its five and ten-year averages for price-to-sales and price-to-free cash flow ratios, so it doesn't have a "cheap" valuation today.
With that said, brighter days are on the horizon at some point for Builders FirstSource, but I'm not willing to hazard a guess as to when. Dollar-cost averaging into a position with the stock seems like the way to go if you believe a turnaround could be coming over the next few years.
Glossary
13F assets under management: The total value of securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Stake: The ownership interest or investment held in a company by an individual or institution.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm on behalf of clients.
Integrated supply and manufacturing model: A business approach combining production and distribution processes to streamline operations and improve efficiency.
Value-added installation and construction services: Additional services provided beyond selling products, such as assembling or installing building materials for clients.
Turnkey framing solutions: Construction services where a provider handles all aspects of framing, delivering a ready-to-use structure.
Quarter (Q3 2025): A three-month financial reporting period; Q3 refers to the third quarter of the year.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in AutoZone and O'Reilly Automotive. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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