Polunin Liquidates 9.5M UGP Shares Worth $31.4 Million

Polunin Capital Partners Ltd sold out its entire position in Ultrapar Participações S.A. (NYSE:UGP) during the third quarter, an estimated $31.40 million trade, according to an October 07, 2025, SEC filing.

What happened

According to a filing with the Securities and Exchange Commission dated October 07, 2025, Polunin Capital Partners Ltd sold its entire holding of Ultrapar Participações S.A. in the third quarter. The transaction reduced the holding by 9,457,242 shares during Q3 2025, with an estimated value of $31.40 million, based on the average price for the period ended September 30, 2025. The fund now reports no position in the company.

What else to know

Polunin stake in Ultrapar previously accounted for 5.1% of the fund's AUM; the position now accounts for 0% of 13F reportable assets.

Top holdings after the filing:

• BABA: $259.79 million (38.2% of AUM as of September 30, 2025)
• JD: $69.80 million (10.3% of AUM)
• STNE: $60.37 million (8.9% of AUM as of September 30, 2025)
• BIDU: $58.56 million (8.6% of AUM as of September 30, 2025)
• YMM: $42.09 million (6.2% of AUM as of Q3 2025)

As of October 15, 2025, shares of Ultrapar were priced at $3.86, up 48.46% YTD, leading the S&P 500 by 34.3 percentage points over the same period.

Company Overview

Company Snapshot

• Offers liquefied petroleum gas distribution, fuel distribution and marketing, convenience retail, and bulk liquid storage services across Brazil and internationally.
• Generates revenue primarily through the sale and distribution of fuels, gas, and related services, supported by an extensive network of service stations, convenience stores, and storage terminals.
• Serves residential, commercial, and industrial customers, with a focus on the South, Southeast, and Northeast regions of Brazil, as well as select international markets.
• Ultrapar Participações S.A. operates in gas distribution, fuel distribution, and storage, primarily in Brazil and internationally.

Foolish take

Polunin Capital Partners has completely sold off its Ultrapar Participações S.A. shares, a $31.4 million sale, which is a big change from one of its larger emerging market holdings. This liquidation comes after a really good run for Ultrapar shares, which have gone up almost 48% this year through mid-October, easily beating the overall market. This move could mean Polunin is taking profits after the stock's rally or perhaps shifting more towards its main positions in Chinese tech companies like Alibaba and JD.com, which now make up the majority share of the fund's portfolio.

Ultrapar is still a major player in Brazil's fuel and gas distribution market. It benefits from steady demand and a huge network of retail and logistics. The company's various operations, from fuel marketing to bulk liquid storage, help protect it from short-term changes in energy prices. While Polunin's sale suggests a change in strategy rather than a problem with the company's fundamentals, Ultrapar's improved performance shows that investors are still interested in Brazilian infrastructure and energy growth stories.

Glossary

13F AUM: Assets under management reported by institutional investment managers in quarterly SEC Form 13F filings.
Full liquidation: Selling an entire investment position, resulting in a zero balance of that asset in the portfolio.
Stake: The amount of ownership or investment a fund or individual holds in a particular company.
Reportable assets: Investments that must be disclosed to regulators, such as those listed in SEC filings.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Convenience retail: Retail operations focused on quick, everyday purchases, often located at fuel stations.
Bulk liquid storage: Facilities used to store large quantities of liquids, such as fuels or chemicals, before distribution.
TTM: The 12-month period ending with the most recent quarterly report.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Baidu and StoneCo. The Motley Fool recommends Alibaba Group and JD.com. The Motley Fool has a disclosure policy.