Kawa Capital Dumps Its Entire Brighthouse Financial Position

On October 6, 2025, Kawa Capital Management, Inc. disclosed a complete sell-out of its Brighthouse Financial (NASDAQ:BHF) stake, selling approximately 150,000 shares for an estimated $8.07 million, as reported in its SEC Form 13F filing for the period ended Q3 2025.

What happened

According to a U.S. Securities and Exchange Commission (SEC) filing dated October 6, 2025, Kawa Capital Management, Inc. reported a full liquidation of its Brighthouse Financial position. The fund sold roughly 150,000 shares, with the estimated transaction value totaling $8.07 million based on average prices. The position previously comprised 14.7% of the fund’s 13F reportable assets.

What else to know

The fund fully exited Brighthouse Financial, reducing the position from 14.7% of assets to zero; its post-trade portfolio shows no remaining stake

Top holdings after the filing:

NYSE: BDN: $16.36 million (29.7% of AUM) as of 2025-09-30

NYSE: ONL: $14.78 million (26.8% of AUM) as of 2025-09-30

NYSE: VALE: $11.08 million (20.1% of AUM) as of 2025-09-30

NYSE: GGB: $6.49 million (11.8% of AUM) as of 2025-09-30

NYSE: DK: $6.45 million (11.7% of AUM) as of 2025-09-30

As of October 5, 2025, shares of Brighthouse Financial were priced at $53.08, up 20.8% over the prior year (based on a 252 trading day window), outperforming the S&P 500 by 2.33 percentage points.

Company overview

Company snapshot

Brighthouse Financial Offers annuity and life insurance products, including variable, fixed, index-linked, and income annuities, as well as term, universal, whole, and variable life insurance policies.

Serves individual customers in the United States seeking retirement income solutions, wealth accumulation, and life insurance protection.

Operates through three business segments: Annuities, Life, and Run-off, providing a diversified product portfolio for retirement-focused clients.

Brighthouse Financial provides annuity and life insurance products in the United States, focusing on retirement income and wealth transfer solutions. Its competitive position is supported by a diversified product portfolio and a focus on serving the evolving needs of retirement-focused clients.

Foolish take

As a company that mostly sells annuities and insurance, Brighthouse Financial isn't a stock that you associate with volatility. A little too much volatility could be what pursuaded Kawa Capital to exit its Brighthouse position. From Feb. 9, through, Aug. 8, the stock fell by 29%.

David Einhorn's Greenlight Capital holds approximately 4.9% of Brighthouse Financial's outstanding shares. On Sep. 22 it sent the Board of Directors a letter encouraging a reported decision to evaluate strategic alternatives. Trailing 12-month earnings have improved in 2025 but they're still down by 81.5% over the past three years.

On Sep. 19, Reuters reported the private equity firm, Aquarian Holdings was in advanced talks to take Brighthouse Financial private for $70 per share. If the BrightHouse board ends up following the advice of Einhorn, and Aquarian pays the reported price, investors could see a big overnight gain. The reported offering price is about 43% above the stock price on Oct. 9.

Glossary

13F filing: A quarterly report required by the U.S. Securities and Exchange Commission (SEC), listing certain investment holdings of institutional investment managers.

Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.

Portfolio shift: A significant change in the composition or allocation of assets within an investment portfolio.

Liquidation: The process of selling off a position or asset, often to exit an investment completely.

Reportable assets: Assets that must be disclosed in regulatory filings, such as those required by the SEC.

Run-off: A business segment managing closed insurance policies, where no new policies are written and existing ones are gradually settled.

Annuity: A financial product that provides regular payments, typically used for retirement income.

Variable annuity: An annuity with payments that fluctuate based on the performance of underlying investments.

Index-linked annuity: An annuity whose returns are tied to a specific market index's performance.

Universal life insurance: A flexible permanent life insurance policy with adjustable premiums and death benefits.

Whole life insurance: A life insurance policy with fixed premiums and guaranteed benefits for the insured's lifetime.

TTM: The 12-month period ending with the most recent quarterly report.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.