Acuitas Dumps Entire Stake in SBH Valued at $2.7 Million

On November 03, 2025, Acuitas Investments, LLC disclosed a full exit from Sally Beauty Holdings (NYSE:SBH), selling 286,575 shares in a trade estimated at ~$2.65 million.

What happened

According to an SEC filing dated November 03, 2025, Acuitas Investments, LLC eliminated its position in Sally Beauty Holdings, selling all 286,575 shares previously held. The transaction was valued at $2,653,685. Following the trade, Acuitas reported no remaining shares of Sally Beauty Holdings in its portfolio.

What else to know

The fund fully exited its position in Sally Beauty Holdings; the stake now accounts for 0% of the fund's AUM. Previously, the position accounted for 2.1% of the fund’s AUM.

Top holdings after the filing:

• SEI: $7.3 million (4.7% of AUM)
• AOSL: $6.7 million (4.3% of AUM)
• MG: $6.3 million(4.1% of AUM)
• NGS: $6.1 million (3.9% of AUM)
• ANGO: $5.57 million (3.6% of AUM)

As of November 4, 2025, shares of Sally Beauty Holdings were priced at $14.24, up 36.3% YTD, overperforming the S&P 500 by 21.2 percentage points during the same period.

Company Overview

Company Snapshot

• Offers professional beauty supplies, including hair color, hair care, skin and nail care products, styling tools, and exclusive-label merchandise, distributed through retail and professional-only stores.
• Generates revenue through direct retail sales to consumers, distribution to salon professionals, and franchise operations across North America, Europe, Mexico, Chile, and Peru.
• Serves retail consumers, salon professionals, and beauty industry businesses seeking branded and exclusive beauty products.
• Sally Beauty Holdings, Inc. is a leading specialty retailer and distributor of professional beauty supplies. The company leverages a dual-segment model—Sally Beauty Supply and Beauty Systems Group—to address both retail and professional markets with a diverse portfolio of third-party and exclusive brands. Its scale, extensive distribution network, and focus on both consumer and professional channels provide a strong competitive advantage.

Foolish take

Acuitas Investments just sold off its entire $2.65 million stake in Sally Beauty Holdings. This full exit comes after a great recovery year for the beauty retailer. The shares have jumped more than 36% in 2025, easily beating the broader market, thanks to a rebound in consumer demand for professional hair and beauty products and better cost management, boosting its profits.

The fund's decision to lock in these gains is most likely a portfolio rebalancing move following the stock’s big rally, rather than a loss of confidence in the company. Sally Beauty is still doing well because of its two-part business model, serving both regular shoppers and salon professionals across North America and international markets. Its huge store network and exclusive brands give it a competitive edge in the crowded beauty space. While the company still faces challenges from inflation-wary consumers and competition from online stores, its consistent execution and focus on value-oriented products have fueled its comeback. Ultimately, Acuitas’ exit looks strategic—cashing in profits while keeping its options open for new opportunities.

Glossary

Full exit: When an investor sells all shares of a particular holding, eliminating their position in that asset.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC under Form 13F.
Stake: The amount of ownership or shares an investor holds in a company.
Position: The quantity of a particular security or investment held by an investor or fund.
Franchise operations: Business model where independent owners operate stores under the company’s brand and guidelines.
Dual-segment model: A company structure with two distinct business divisions targeting different customer groups or markets.
Distribution network: The system of facilities and logistics used to deliver products from a company to its customers.
Exclusive-label merchandise: Products sold under a brand owned or controlled by the retailer, not available from other sellers.
Professional-only stores: Retail locations that sell products exclusively to licensed professionals, not the general public.
Portfolio: The collection of investments held by an individual or institution.
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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.