HF Sinclair Up 45% in a Year, but One Fund Quietly Cut $6.5 Million From the Position

DDD Partners reduced its stake in HF Sinclair (NYSE:DINO) by 125,198 shares in the fourth quarter, an estimated $6.45 million transaction based on quarterly average pricing, according to a January 22 SEC filing.

What happened

According to a January 22 SEC filing, DDD Partners sold 125,198 shares of HF Sinclair in the fourth quarter. The estimated transaction value was $6.45 million based on the average closing price during the fourth quarter. Meanwhile, the firm’s quarter-end position in HF Sinclair declined by $8.37 million, a figure that includes both the effects of share sales and changes in the stock’s price.

What else to know

DDD Partners’ HF Sinclair position now accounts for 0.85% of its 13F reportable assets.

Top holdings after the filing:

• NASDAQ: MSFT: $555.66 million (35.4% of AUM)
• NYSE: BRK-B: $57.31 million (3.6% of AUM)
• NASDAQ: AAPL: $44.69 million (2.8% of AUM)
• NASDAQ: AMZN: $41.45 million (2.6% of AUM)
• NASDAQ: AVGO: $30.14 million (1.9% of AUM)

As of January 21, HF Sinclair shares were priced at $50.03, up 44.8% over the past year and vastly outperforming the S&P 500’s roughly 14% gain in the same period.

Company overview

Company snapshot

• HF Sinclair Corporation produces and markets gasoline, diesel, jet fuel, renewable diesel, lubricants, specialty chemicals, and asphalt, with refining operations across the central and western United States.
• The company generates revenue through the sale of refined petroleum products, renewable fuels, and specialty chemicals, as well as through transportation, storage, and licensing of the Sinclair brand.
• It serves wholesale fuel distributors, independent Sinclair-branded stations, and industrial customers primarily in the Southwest, Rocky Mountains, Pacific Northwest, and Plains regions.

HF Sinclair Corporation is a leading independent energy company focused on the production and marketing of refined petroleum products and renewables. The company leverages a diversified portfolio of refineries and established distribution channels to maintain a strong market presence in key U.S. regions. Strategic integration of renewables and specialty products supports its competitive positioning and long-term growth objectives.

What this transaction means for investors

HF Sinclair has delivered exactly what energy investors wanted over the past year: strong cash generation, disciplined capital returns, and leverage to refining margins that stayed resilient longer than many expected. In its most recent quarterly release, the company reported net income of $403 million, up from a loss of $76 million one year ago, and reaffirmed its capital return framework, including a regular quarterly dividend and ongoing shareholder distributions. Management highlighted steady performance across refining and renewables, underscoring a balance sheet that remains flexible even as crack spreads normalize.

Against that backdrop, the trim stands out less as a bearish call and more as portfolio math. HF Sinclair now represents just 0.85% of DDD Partners’ reported assets, a rounding error next to its mega-cap exposure to Microsoft, Berkshire Hathaway, and Apple. When a stock outperforms the S&P 500 by roughly 30 percentage points in a year, harvesting gains is often prudent, especially in a fund dominated by technology-heavy positions.

In other words, HF Sinclair’s fundamentals did not suddenly break. But energy remains cyclical, and outsized runs invite rebalancing. The stock’s future returns likely hinge less on momentum and more on refining margins, renewable diesel economics, and management’s ability to keep returning cash when conditions soften.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Microsoft. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.