This Fund Just Disclosed a New $16 Million Bet on SLM Despite a 30% One-Year Slide

On May 8, 2026, Act Two Investors disclosed a buy of 670,063 shares of SLM (NASDAQ:SLM), an estimated $15.84 million trade based on quarterly average pricing.

What happened

According to a Securities and Exchange Commission (SEC) filing dated May 8, 2026, Act Two Investors bought 670,063 additional shares of SLM during the first quarter. The estimated transaction value was $15.84 million based on the average unadjusted close from January through March 2026. The quarter-end value of the SLM position increased by $14.13 million, reflecting both the purchase and price movement over the period.

What else to know

• This buy raised SLM to 3.34% of Act Two Investors’ 13F reportable AUM as of March 31, 2026.
• Top holdings after the filing:
  • NASDAQ:GOOGL: $71.49 million (15.8% of AUM)
  • NASDAQ:MSFT: $52.81 million (11.7% of AUM)
  • NASDAQ:AMZN: $36.96 million (8.2% of AUM)
  • NASDAQ:TMUS: $31.87 million (7.0% of AUM)
  • NYSE:V: $31.48 million (6.9% of AUM)
• As of May 7, 2026, SLM shares were priced at $22.66, down nearly 30% over the past year and vastly underperforming the S&P 500, which is instead up about 30% in the same period.

Company overview

Company snapshot

• SLM provides private education loans, retail deposit accounts, and credit card loans, with primary revenue from interest income and loan servicing.
• The firm operates as a financial services provider, generating income through loan origination, servicing fees, and deposit products.
• It targets students and families in the United States seeking education financing solutions and related banking services.

SLM is a leading provider of private education loans in the United States, complemented by a suite of retail banking products. The company leverages its expertise in education finance to serve students and families, offering tailored lending and deposit solutions. Its scale and focused strategy position it as a key player in the education lending sector, with competitive strengths in loan origination and servicing.

What this transaction means for investors

SLM shares have badly lagged the broader market over the past year, but the company’s latest results suggest the underlying business is still generating strong earnings, loan growth, and shareholder returns.

In first-quarter results released April 23, Sallie Mae actually raised its full-year earnings guidance while reporting diluted EPS of $1.54, up from $1.40 a year earlier. Private education loan originations climbed 5%, and the company generated a hefty $146 million gain from loan sales while maintaining a 5.29% net interest margin. The company also repurchased 12 million shares for $259 million during the quarter, continuing an aggressive capital return strategy.

There are still real risks here. Delinquencies ticked higher to 3.98% from 3.58% a year ago, while net charge-offs reached $89 million. But for long-term investors, the setup may come down to whether SLM can keep pairing double-digit loan growth with disciplined underwriting and buybacks. If it can, the stock’s nearly 30% decline over the past year may eventually look overdone, which could be exactly what Act Two Investors is betting on.

SLM is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Visa. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy.