A 45% Trim Inside a 12-Stock Fund Tells You More Than the Share Count

On April 24, 2026, Magnolia Group, LLC disclosed a sale of 1,170,437 shares of Alliance Resource Partners (NASDAQ:ARLP), an estimated $30.30 million trade based on quarterly average pricing, according to a new SEC filing.

Alliance Resource Partners, L.P. operates seven mining complexes and manages coal, mineral, and royalty assets across key U.S. basins.

• Sold 1,170,437 shares; estimated transaction value $30.30 million (quarterly average pricing)
• Quarter-end position value decreased $20.95 million, reflecting both share sale and price changes
• Total 13F reportable AUM decreased 11.4% quarter over quarter, from $606.51 million to $537.51 million
• Post-trade holding: 1,411,260 shares valued at $39.02 million
• Alliance Resource Partners, L.P. now accounts for 7.26% of fund AUM, the fund's fifth-largest position

What happened

According to a SEC filing dated April 24, 2026, Magnolia Group, LLC sold 1,170,437 shares of Alliance Resource Partners, L.P. The estimated transaction value was $30.30 million, based on the mean unadjusted closing price during the 2026 first quarter. The fund's quarter-end position in Alliance Resource Partners, L.P. was valued at $39.02 million, a $20.95 million decrease from the prior quarter, reflecting both trading activity and market price changes.

What else to know

• The April 24, 2026, filing shows a sell transaction; Alliance Resource Partners, L.P. now represents 7.26% of Magnolia Group, LLC's $537.51 million 13F reportable AUM.
• Top holdings after the filing:
  • NYSE:NNI: $215.23 million (40.0% of AUM)
  • NYSE:BOC: $65.28 million (12.1% of AUM)
  • NYSE:CNR: $63.10 million (11.7% of AUM)
  • NYSE:ABG: $56.28 million (10.5% of AUM)
  • NASDAQ:ARLP: $39.02 million (7.26% of AUM)
• As of April 23, 2026, Alliance Resource Partners, L.P. shares were priced at $25.23, up 2.4% over the prior year, underperforming the S&P 500 by 29.88 percentage points.

Company overview

Company snapshot

• ARLP produces and markets thermal and metallurgical coal, manages coal loading terminals, and owns oil and gas royalty interests; also offers mining technology solutions.
• Alliance Group generates revenue primarily through coal sales to utilities and industrial users, as well as from leasing mineral rights and providing mining-related services.
• The company serves electric utilities, industrial customers, and oil & gas operators across the United States.

Alliance Resource Partners, L.P. is a leading U.S. natural resource company focused on coal production and mineral leasing, with a diversified portfolio spanning coal mining, royalty interests, and mining technology. The company operates seven underground mining complexes and manages significant coal reserves and mineral rights in key U.S. basins. Its integrated approach and broad customer base provide resilience and scale within the energy sector.

What this transaction means for investors

The headline number — 1,170,437 shares sold — doesn't tell you much on its own. What matters is the proportion. Magnolia cut its ARLP stake by roughly 45%, dropping from 2,581,697 shares to 1,411,260. That's meaningful in any context, but it's especially notable inside a portfolio that holds only 12 names and concentrates 40% of its $537 million in 13F AUM in a single position. Concentrated funds don't trim casually — every move reshapes the book. Magnolia hasn't said publicly why it sold, so readers shouldn't fill in a thesis. What the filing does show is that this wasn't an isolated coal call. The fund also exited Lamb Weston Holdings (NYSE:LW) entirely, opened a small new position in NVR (NYSE:NVR), and saw total AUM drop about 11% quarter over quarter. The ARLP sale sits inside a wider portfolio reshape rather than standing alone. For investors who watch 13F filings to mirror manager moves, that distinction is the whole game: copying one trade out of a coordinated rebalance is not the same as copying one trade out of an otherwise stable book. The latter implies a thesis change on the stock itself. The former implies the fund is in motion, and the trade you're mirroring may be a portfolio-construction decision rather than a view on the underlying business. Knowing which one you're copying is what separates a useful 13F signal from a noisy one.

Seena Hassouna has positions in Nelnet. The Motley Fool has positions in and recommends Boston Omaha and Nelnet. The Motley Fool has a disclosure policy.