This Fund Added a New 5% Portfolio Position in a Surging Defense and Medtech Supplier
Key Points
Anchor Capital purchased 189,817 shares of Knowles; the estimated trade value was $4.80 million based on quarterly average prices.
Meanwhile, the quarter-end position value increased by $4.87 million, reflecting both share acquisition and stock price movements.
The transaction represented a 5.18% increase relative to the fund's 13F reportable AUM.
The Knowles stake now accounts for 5.26% of fund AUM.
- 10 stocks we like better than Knowles ›
On May 15, 2026, Anchor Capital Management Company disclosed a new position in Knowles (NYSE:KN), acquiring 189,817 shares in the first quarter. The estimated transaction value was $4.80 million, based on quarterly average pricing.
What happened
According to a SEC filing dated May 15, 2026, Anchor Capital Management Company disclosed a new position in Knowles (NYSE:KN), acquiring 189,817 shares during the first quarter. The estimated transaction value was $4.80 million, calculated using the quarter’s average unadjusted closing price. The position’s value at quarter-end rose by $4.87 million, a figure that includes both trading activity and market price changes.
What else to know
- This is a new position for the fund, representing 5.26% of its 13F reportable assets under management as of March 31, 2026
- Top holdings after the filing:
- NASDAQ: HLMN: $21.10 million (22.8% of AUM)
- NASDAQ: MGRC: $20.43 million (22.0% of AUM)
- NASDAQ: LIND: $16.99 million (18.3% of AUM)
- NYSE: SXI: $14.33 million (15.5% of AUM)
- NASDAQ: VITL: $8.77 million (9.5% of AUM)
- As of May 14, 2026, Knowles shares were priced at $35.92, up a staggering 110% over the past year and well outperforming the S&P 500, which is instead up about 25%.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $614.10 million |
| Net income (TTM) | $62.6 million |
| Price (as of market close May 14, 2026) | $35.92 |
| One-year price change | 110% |
Company snapshot
- Knowles provides micro-acoustic microphones, balanced armature speakers, audio processors, high-performance capacitors, and RF solutions for consumer electronics, medtech, defense, electric vehicles, industrial, and communications markets.
- Its main customers include original equipment manufacturers in mobile, hearing health, IoT, computing, medical, and industrial sectors.
Knowles is a leading provider of advanced micro-acoustic and precision device solutions, serving a diverse set of industries worldwide. The company leverages its expertise in audio and RF technology to deliver high-performance components that are integral to a broad range of electronic applications. Knowles' strong market position is supported by its global reach, diversified customer base, and commitment to innovation.
What this transaction means for investors
This buy ultimately looks like a bet that Knowles’ turnaround still has room to run, even after the stock more than doubled over the past year. Anchor opening a brand-new position after that kind of rally suggests the firm may believe the market is still underestimating the company’s exposure to fast-growing markets like defense, medtech, and electrification.
The latest quarter helps explain the optimism. Revenue climbed 16% year over year to $153.1 million, while non-GAAP diluted EPS jumped 50% to $0.27. Gross margin also expanded sharply to 43.8%, up from 40.3% a year ago. Management said the better-than-expected growth was driven by strong demand trends across industrial, medtech, and defense end markets, while highlighting a “healthy backlog” and multiple new design wins ramping into production.
For long-term investors, the key question is whether Knowles can sustain this momentum after such a massive stock move. The company’s improving margins and diversified customer base are encouraging, but expectations are now much higher. If management keeps executing and secular demand trends hold, investors could still see upside from here despite the rally.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hillman Solutions. The Motley Fool recommends Lindblad Expeditions, McGrath RentCorp, and Vital Farms. The Motley Fool has a disclosure policy.
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