Why One Fund Still Has a $14 Million Bet on This Resale Stock Up 130% This Past Year
Key Points
Connecticut-based Manatuck Hill Partners sold 350,000 shares of The RealReal in the third quarter.
The position value decreased by an estimated $5.8 million versus the prior quarter.
Manatuck now holds nearly 1.3 million shares of The RealReal worth about $13.6 million.
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Connecticut-based Manatuck Hill Partners disclosed a sale of 150,000 shares of The RealReal (NASDAQ:REAL) in a November 14 SEC filing, though rising shares of the stock helped the overall value of the stake increase by $5.8 million.
What Happened
According to its SEC filing dated November 14, Manatuck Hill Partners sold 350,000 shares of The RealReal (NASDAQ:REAL) in the third quarter. However, given rising share prices, the position’s reported value increased to approximately $13.6 million at quarter-end. The fund held nearly 1.3 million shares as of September 30.
What Else to Know
The fund's stake in The Real Real is about 4.5% of 13F reportable AUM as of September 30.
Top holdings after filing:
- NYSE: ZETA: $14 million (4.6% of AUM)
- NASDAQ: REAL: $13.6 million (4.6% of AUM)
- NYSE: IMAX: $11.1 million (3.8% of AUM)
- NASDAQ: OPRX: $9.7 million (3.3% of AUM)
- NYSE: HLF: $8.4 million (2.9% of AUM)
As of Friday, shares were priced at $13.98, up 128% over the past year and vastly outperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $662.8 million |
| Net Income (TTM) | ($71.5 million) |
| Market Capitalization | $1.6 billion |
| Price (as of market close Friday) | $13.98 |
Company Snapshot
- The RealReal operates an online marketplace for consigned luxury goods, including apparel, jewelry, watches, home, and art products.
- The company generates revenue by facilitating the resale of authenticated luxury items between consignors and buyers.
- It serves fashion-conscious consumers and collectors seeking authenticated, high-end products at accessible prices in the United States.
The RealReal, Inc. operates an online marketplace for consigned luxury goods in the United States, connecting sellers and buyers of premium products through a digital platform.
Foolish Take
Even with shares still trading roughly 50% below pandemic-era highs, Manatuck’s move matters because The RealReal is finally showing signs of durable operating momentum — something long-term investors have been waiting for. The company just posted accelerating growth, expanding margins, and raised full-year guidance, suggesting that its turnaround may be gaining traction even as the broader luxury resale space stays competitive. In the third quarter, GMV rose 20% year over year, and revenue increased 17%, while the company's adjusted EBITDA margin improved 380 basis points to 5.4% — a meaningful shift compared to recent years. Rising average order values and a growing active-buyer base also signal improving engagement.
For Manatuck Hill, trimming exposure yet seeing the position’s value rise reflects a portfolio that is increasingly concentrated in a handful of higher-conviction tech and consumer names. The RealReal now accounts for about 4.6% of reportable AUM — a sizable allocation for a still-volatile stock.
Ultimately, The RealReal is executing better and demonstrating improved profitability and cash generation. But sustained margin expansion and disciplined cost control will be key before the stock earns a more durable re-rating.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their investment holdings.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm on behalf of clients.
Consigned: Goods sent to a third party to sell on behalf of the owner, with proceeds shared after the sale.
Quarter-end: The last day of a company’s fiscal quarter, used for financial reporting and analysis.
Outperforming: Achieving a higher return or better results compared to a benchmark or peer group.
Holding: A security or asset owned by an individual or institution as part of an investment portfolio.
Stake: The ownership interest or share that an investor or fund holds in a company.
Position: The amount of a particular security or asset owned or sold short by an investor or fund.
Authenticated: Verified as genuine, often referring to luxury goods that are checked for authenticity before sale.
Luxury consignment: The process of selling high-end goods through a third party, typically with authentication and premium service.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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