Why One Fund Made Standex Nearly 18% of Its Portfolio as Shares Hit Record Highs

North Carolina-based Anchor Capital Management Company reported a buy of Standex International Corporation (NYSE:SXI), adding 29,998 shares for a net position increase of $10.15 million, according to an SEC filing on November 14.

What Happened

According to an SEC filing dated November 14, Anchor Capital Management Company increased its position in Standex International Corporation (NYSE:SXI) by 29,998 shares during the third quarter. The holding grew to 98,394 shares, bringing the position's value to $20.85 million as of September 30.

What Else to Know

The buy activity brings SXI to 17.95% of 13F AUM, making it the fund's second-largest position.

Top holdings after the filing:

• NASDAQ:LIND: $24.5 million (21.1% of AUM)
• NYSE:SXI: $20.9 million (17.9% of AUM)
• NASDAQ:VITL: $14.7 million (12.7% of AUM)
• NASDAQ:HLMN: $13.0 million (11.2% of AUM)
• NASDAQ:IRDM: $12.8 million (11.1% of AUM)

As of Wednesday, SXI shares were priced at $229.42, up about 20% over the past year and outperforming the S&P 500, which was up about 15% in the same period.

Company Overview

Company Snapshot

• Standex International Corporation offers a diversified portfolio including electronics sensors, custom transformers, mold texturizing, scientific refrigeration, engineered components for aerospace and defense, and specialty merchandising equipment.
• The company generates revenue through the design, manufacture, and sale of specialized industrial products across five business segments, leveraging proprietary technologies and value-added solutions.
• It serves commercial and industrial customers globally, with primary end markets in electronics, medical, aerospace, defense, energy, and retail sectors.

Standex International Corporation is a mid-cap industrial manufacturer with a global footprint, operating through five specialized segments that address diverse commercial and industrial needs. The company’s strategy emphasizes innovation in engineered products and customization to serve demanding end markets. Standex’s broad product offering and focus on specialized applications help to differentiate it within the industrial machinery sector.

Foolish Take

What matters here is not the share count but conviction. Making a single industrial name nearly one-fifth of a portfolio signals a view that something structural is changing, not just that the stock has momentum. Standex’s latest quarter helps explain why. Sales jumped 27.6% year over year to $217.4 million, driven by acquisitions and accelerating demand in fast-growth end markets like electrical grid infrastructure, defense, aviation, and space. Orders reached a record $226 million, pushing book-to-bill above one, a key signal for forward revenue visibility.

Profitability is moving in the right direction, too. Adjusted operating margin expanded 210 basis points year over year to 19.1%, while adjusted EBITDA climbed 38% to $47.1 million. Management also raised its full-year revenue outlook, now expecting more than $110 million of incremental sales in fiscal 2026, up from prior guidance. In context, this position sits alongside other concentrated bets rather than broad index exposure, reinforcing that this fund favors operational leverage over macro timing.

Glossary

AUM: Assets Under Management – The total market value of investments managed by a fund or investment firm.
13F: A quarterly SEC filing required from institutional investment managers to disclose their equity holdings.
Net position: The total value of a specific investment held by a fund after recent buy or sell activity.
Dividend yield: Annual dividends paid by a company as a percentage of its current share price.
Trailing 12-month (TTM): The 12-month period ending with the most recent quarterly report.
Mid-cap: A company with a market capitalization typically between $2 billion and $10 billion.
Business segment: A distinct part of a company’s operations, often with its own products, customers, and financials.
Proprietary technologies: Unique technologies owned and controlled by a company, often protected by patents or trade secrets.
Value-added solutions: Products or services enhanced to provide additional benefits beyond basic functions.
Reportable AUM: The portion of a fund's assets that must be disclosed in regulatory filings.
Position increase: An increase in the number of shares or value of a specific holding within a portfolio.
Outperforming: Achieving better returns than a specific benchmark or index over a given period.

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 and Vital Farms. The Motley Fool has a disclosure policy.