Why One Fund Bet $36 Million on CyberArk Stock and Made It a 20% Portfolio Anchor

On November 14, London-based Decagon Asset Management disclosed a new position in CyberArk Software Ltd. (NASDAQ:CYBR), acquiring 74,990 shares for an estimated $36.23 million.

What Happened

According to a Securities and Exchange Commission (SEC) filing dated November 14, Decagon Asset Management LLP established a new position in CyberArk Software Ltd. during the third quarter. The fund reported holding 74,990 shares, valued at $36.23 million, as of September 30, 2025. The new stake represents a significant allocation within the fund’s $198.06 million in reportable U.S. equity positions.

What Else to Know

This is a new position for Decagon Asset Management LLP; CyberArk now accounts for 18.29% of 13F reportable AUM, making it the fund’s 1st-largest holding

Top holdings after the filing:

• NASDAQ: CYBR: $36.23 million (20.7% of AUM)
• NYSE: GTLS: $27.57 million (15.7% of AUM)
• NYSE: AL: $22.25 million (12.7% of AUM)
• NASDAQ: MCGA: $11.04 million (6.3% of AUM)
• NYSE: ELME: $8.67 million (5.0% of AUM)

As of Wednesday, shares of CyberArk were priced at $451.86, up 41% over the past year and well outperforming the S&P 500, which is up 15% in the same period.

Company Overview

Company Snapshot

• CyberArk Software provides identity security solutions, including privileged access management, endpoint privilege, cloud entitlement, and identity authentication services.
• The company serves a global client base across financial services, healthcare, energy, manufacturing, government, and technology sectors.
• It operates a subscription-based business model with a mix of software licensing and SaaS offerings.

CyberArk Software Ltd. is a leading provider of identity security and privileged access management solutions, operating at scale with a global footprint. The company leverages a robust software and SaaS platform to address critical cybersecurity needs for large enterprises and government organizations. Its strategic focus on securing privileged credentials and cloud environments positions it as a key player in the infrastructure software segment.

Foolish Take

When a manager is willing to make one stock nearly a fifth of reported assets, it signals more than momentum chasing -- it suggests confidence in durability. That’s what stands out here. CyberArk Software sits at the intersection of identity security, cloud infrastructure, and enterprise software spending that remains stubbornly resilient even in tighter IT budgets, and the latest earnings explain why. In the third quarter, CyberArk posted total revenue of $342.8 million, up 43% year over year, while annual recurring revenue climbed 45% to $1.34 billion. Even more telling, subscription ARR surged 57%, now representing roughly 86% of total ARR.

Profitability is still messy on a GAAP basis, with a larger $50.1 million operating loss driven by acquisitions and stock compensation, but non-GAAP operating income expanded to a 19% margin. Plus, with nearly $2 billion in cash and marketable securities, balance-sheet risk looks contained.

More broadly, this portfolio already leans toward infrastructure-heavy names rather than speculative software. In that light, CyberArk isn’t an outlier; it’s a scaled, cash-generating security platform benefiting from rising identity complexity. And long-term investors should keep in mind that recurring revenue strength can justify concentration, even after a strong run.

Glossary

Assets under management (AUM): The total market value of investments managed by a fund or asset manager.
Reportable assets: Investment holdings that must be disclosed to regulators, typically in required filings like the SEC's 13F.
13F filing: A quarterly report required by the SEC from institutional investment managers detailing their equity holdings.
Net position change: The difference in the number or value of shares held in a security after a transaction.
Privileged access management: Security solutions that control and monitor access to critical systems by users with elevated permissions.
Cloud entitlement: The process of granting and managing user permissions for cloud-based resources and services.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Identity security: Technologies and processes that protect user identities and control access to digital resources.
Endpoint privilege: Security controls that manage what actions users or devices can perform on network endpoints, like computers or servers.
Stake: The ownership interest or amount of shares held in a company by an investor or fund.
Holding: A security or asset owned by an investor or fund as part of its portfolio.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chart Industries. The Motley Fool has a disclosure policy.