One Fund Cut $3 Million From This Cruise Stock Amid a Nearly 30% Slide

On January 29, Deltec Asset Management reported selling 146,667 shares of Norwegian Cruise Line Holdings (NYSE:NCLH), an estimated $3.10 million transaction based on quarterly average pricing.

What happened

According to a recent SEC filing dated January 29, Deltec Asset Management sold 146,667 shares of Norwegian Cruise Line Holdings during the fourth quarter. The estimated trade value was $3.10 million, calculated using the average unadjusted closing price for the quarter. The fund’s quarter-end position in Norwegian Cruise Line was valued at $7.67 million, reflecting both the share reduction and stock price fluctuations.

What else to know

Deltec’s sale reduced Norwegian Cruise Line Holdings to 1.27% of its 13F U.S. equity AUM.

Top holdings after the filing:

• NASDAQ: GOOGL: $59.17 million (9.8% of AUM)
• NASDAQ: AVGO: $37.23 million (6.2% of AUM)
• NASDAQ: AMZN: $35.78 million (5.9% of AUM)
• NASDAQ: MSFT: $34.45 million (5.7% of AUM)
• NASDAQ: NVDA: $31.84 million (5.3% of AUM)

As of January 28, Norwegian Cruise Line Holdings shares were priced at $20.79, down 26.9% over the past year and underperforming the S&P 500 by 41.9 percentage points.

Company overview

Company snapshot

• Norwegian Cruise Line operates cruise lines under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, offering itineraries ranging from three to 180 days across global destinations.
• The company generates revenue through ticket sales, onboard services, and ancillary offerings, leveraging a multi-brand strategy to capture various segments of the cruise market.
• It targets leisure travelers worldwide, with distribution through retail travel advisors, direct sales, and group bookings for meetings, incentives, and charters.

Norwegian Cruise Line Holdings Ltd. is a leading global cruise operator with a diversified fleet and a strong presence across major cruise markets. The company’s multi-brand approach enables it to serve a broad customer base, from mainstream to luxury segments, enhancing its competitive positioning.

What this transaction means for investors

Norwegian Cruise Line has delivered operationally, but its equity story remains tethered to leverage, cyclicality, and macro sensitivity in a way that stands out when compared with Deltec’s core holdings.

The company’s latest quarterly report was solid. Third-quarter revenue hit a record $2.9 billion, up 5% year over year, while adjusted EBITDA climbed 9% to just over $1.0 billion and adjusted EPS reached $1.20, topping guidance. Management raised full-year adjusted EPS guidance to $2.10 and continues to generate solid cash flow. Plus, demand remains healthy, with occupancy exceeding 106%.

Nevertheless, leverage still looms large. Net debt stood at roughly $14.4 billion at quarter end, with net leverage at 5.4 times adjusted EBITDA, primarily due to the delivery of the ship Oceania Allura. That capital structure contrasts sharply with Deltec’s largest holdings, which skew toward mega-cap tech and diversified platforms with cleaner balance sheets and structural growth tailwinds. Ultimately, this sale underscores a familiar trade-off. Norwegian offers earnings momentum and improving fundamentals, but it also carries balance sheet risk that can dominate returns when sentiment turns.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.