Philosophy Capital Initiates Compass Position as the Brokerage Moves Past Expansion Mode
Key Points
Philosophy Capital Management LLC initiated 3,364,449 shares in Compass, an estimated $27.02 million position
The newly initiated Compass position is equal to 1.11% of reportable 13F assets under management
Post-trade holding stands at 3,364,449 shares valued at $27.02 million
Stake represents 1.11% of fund AUM, which places it outside the fund's top five holdings
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What happened
Philosophy Capital Management LLC established a new holding in Compass (NYSE:COMP), reporting ownership of 3,364,449 shares valued at $27.02 million as of September 30, 2025, according to a filing with the Securities and Exchange Commission (SEC) dated November 14, 2025. The position was not present in the prior quarter’s disclosure.
What else to know
This new position accounts for 1.11% of Philosophy Capital Management LLC’s $2.44 billion in reportable U.S. equity assets.
Top holdings after the filing:
- NASDAQ:GLNG: $97.87 million (11.3% of AUM)
- NASDAQ:TLN: $85.08 million (9.8% of AUM)
- NASDAQ:CZR: $47.07 million (5.4% of AUM)
- NYSE:KRC: $46.03 million (5.3% of AUM)
- NYSE:ET: $43.56 million (5.0% of AUM)
As of November 13, 2025, shares of Compass were priced at $9.49, up 41.6% over the past year, outperforming the S&P 500 by 29.05 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $6.64 billion |
| Net Income (TTM) | ($56.40 million) |
| Price (as of market close November 13, 2025) | $9.49 |
| One-Year Price Change | 41.64% |
Company snapshot
- Compass provides a cloud-based platform and mobile applications for real estate agents, integrating customer relationship management, marketing, and operational tools.
- The company generates revenue primarily through real estate brokerage commissions and adjacent services, leveraging its proprietary technology to enhance agent productivity and client engagement.
- Its primary customers are real estate agents and brokerages operating in the United States residential real estate market.
Compass is a technology-driven real estate brokerage that operates at national scale, combining a robust software platform with traditional brokerage services. The company's strategy centers on empowering agents through innovative digital tools, aiming to increase transaction efficiency and client satisfaction. With a significant presence in key U.S. markets, Compass leverages its integrated technology to differentiate itself in a competitive industry landscape.
Foolish take
Philosophy Capital Management opened a new position in Compass after the stock had already climbed, which makes the timing worth noting. This was not a rescue buy. It reads like a bet that Compass’s own changes will matter as much as the housing tape.Compass gets paid when deals close.
What’s changed, based on management’s recent commentary, is how hard the company is leaning into running fewer and better markets instead of chasing footprint. Compass has pulled back in areas where agent productivity is weak and has put more attention on retaining high-output agents who drive repeat volume. Costs have been tightened in the background, hiring has cooled, and M&A has slipped down the priority list. Leadership has also pointed to commission pressure and a brokerage market that is getting more crowded and more consolidated, with big incumbents such as Anywhere Real Estate still fighting for share. Even so, the stock often trades like it is only a housing-cycle proxy.
For investors, the next test is whether incremental deal activity turns into cash flow. As volumes stabilize, the focus shifts from headline transactions to how much money the business keeps. If Compass can hold costs steady while revenue improves, the stock may start to trade on operating results rather than housing sentiment.
Glossary
Assets Under Management (AUM): The total market value of investments that a fund or firm manages on behalf of clients.
13F assets: U.S. equity securities that institutional investment managers must report quarterly to the SEC on Form 13F.
Position: The amount of a particular security or asset held in a portfolio.
Holding: A security or asset currently owned by an investor or fund.
Brokerage commissions: Fees earned by brokers for facilitating the buying or selling of real estate or other assets.
Proprietary technology: Technology owned and developed by a company, not available for public use.
Cloud-based platform: Software and services hosted on remote servers and accessed via the internet, rather than installed locally.
Customer relationship management (CRM): Software that helps businesses manage interactions with current and potential customers.
Reportable U.S. equity assets: U.S. stocks and related securities that must be disclosed in regulatory filings.
Quarterly disclosure: A report that investment managers file every three months, detailing their holdings and positions.
Stake: The ownership interest or share in a company or asset.
TTM: The 12-month period ending with the most recent quarterly report.
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Eric Trie 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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