Why a Hedge Fund Sold Most of Its Genius Sports Stake Despite Best Quarterly Performance in Years

On November 14, New York City-based Cooper Creek Partners Management disclosed a major sale of Genius Sports Limited (NYSE:GENI), reducing its position by an estimated $74.1 million, according to SEC filings.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Cooper Creek Partners Management sold nearly 7.5 million shares of Genius Sports Limited during the third quarter. The position, previously 3% of fund AUM as of the prior quarter, was reduced to a 0.7% allocation, with 1.7 million shares valued at $21.5 million as of September 30.

What Else to Know

This was a significant sale, reducing GENI’s portion of the fund’s portfolio to 0.7% of 13F AUM after the quarter-end.

Top holdings post-filing:

• NYSE:OI: $130.5 million (4.9% of AUM)
• NASDAQ:NWL: $130.2 million (4.9% of AUM)
• NYSE:CXW: $129.7 million (4.9% of AUM)
• NYSE:BBWI: $129 million (4.8% of AUM)
• NYSE:AAP: $107 million (4.0% of AUM)

As of Friday, shares were priced at $10.07, up 3% over the past year, lagging the S&P 500's return of 14% in the same period.

Company Overview

Company Snapshot

Genius Sports Limited is a leading provider of technology-driven products and services for the global sports, sports betting, and sports media industries. The company leverages proprietary data collection and distribution platforms to deliver real-time sports data and streaming content, supporting both operational efficiency and integrity for its clients. Genius Sports' integrated solutions and focus on data-driven insights position it as a strategic partner for organizations aiming to commercialize sports content and enhance fan engagement. It generates revenue through licensing of data feeds, streaming content, risk management services, and digital marketing solutions for the sports and betting ecosystem and serves sports leagues, sportsbooks, betting operators, and digital publishers seeking real-time data and fan engagement tools.

Foolish Take

A large-scale position cut in a high-growth but volatile platform companies like Genius Sports often signals a reassessment of timing rather than thesis. GENI has executed on revenue expansion, raised full-year guidance, and continues to scale its data and media platform—but the stock remains more than 40% below its 2021 highs. When a fund trims roughly three-quarters of its position during a period of improving fundamentals, it seemingly underscores how sentiment can diverge from a company’s operating trajectory.

According to the latest SEC filing, Cooper Creek Partners sold nearly 7.5 million shares of Genius Sports in the third quarter, reducing its stake from 3% of assets to just 0.7%. The remaining 1.7 million shares were valued at $21.5 million at quarter-end.

The move coincides with a quarter in which Genius posted 38% revenue growth to $166.3 million, fueled by 89% media revenue growth and continued momentum in its betting segment. The company also lifted full-year guidance, now expecting $655 million in 2025 revenue and $136 million in adjusted EBITDA. CEO Mark Locke emphasized the company’s momentum, noting that the quarter “reflects our unique ability to combine sports data with audience intelligence to deliver personalized fan experiences at scale.”

So, while execution is strengthening, volatility will likely remain. For long-term investors, it's best to stay focused on whether GENI’s fundamentals continue to move in the right direction.

Glossary

13F reportable AUM: Assets under management reported by institutional investment managers on SEC Form 13F, covering certain publicly traded securities.

Allocation: The percentage of a fund's total assets invested in a specific security or asset class.

Position: The amount of a particular security or investment held by an investor or fund.

Quarter-end: The last day of a fiscal quarter, often used as a reporting or measurement date.

Proprietary data: Unique data collected, owned, and controlled by a company, not available to competitors.

Streaming solutions: Technology services that deliver live or on-demand audio and video content over the internet.

Integrity services: Tools and processes designed to detect and prevent fraud or manipulation in sports and betting.

Risk management services: Offerings that help organizations identify, assess, and mitigate financial or operational risks.

Digital marketing solutions: Services that use online channels to promote products, engage audiences, and drive business results.

Fan engagement tools: Digital products designed to increase interaction and connection between sports organizations and their audiences.

Data feeds: Streams of real-time or regularly updated information provided to clients, often for analytics or decision-making.

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

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Genius Sports. The Motley Fool has a disclosure policy.