Hedge Fund Shuts the Door on Retail Brokerage, According to Latest SEC Filing
Key Points
Sold 5,000,000 shares of Webull Corporation, an estimated $32.39 million trade based on quarterly average pricing
Quarter-end position value declined by $38.85 million, reflecting both share sale and price movement
Represents a 14.27% decrease in fund’s 13F reportable assets under management
Post-trade, the fund holds zero shares of Webull Corporation, with a stake value of $0
The position previously accounted for 11.8% of fund AUM.
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On May 4, 2026, Yong Rong (HK) Asset Management Ltd disclosed in a Securities and Exchange Commission (SEC) filing that it sold its entire 5,000,000-share stake in Webull Corporation (NASDAQ:BULL), an estimated $32.39 million transaction based on quarterly average pricing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated May 4, 2026, Yong Rong (HK) Asset Management Ltd sold its entire 5,000,000-share stake in Webull Corporation. The estimated transaction value was $32.39 million, calculated using the average unadjusted closing price over the first quarter. The quarter-end position value dropped by $38.85 million, which includes both trading and market price effects.
What else to know
The fund sold out of Webull Corporation, reducing its stake from 11.8% of AUM in the previous quarter to zero; post-trade, the position represents none of AUM.
Top holdings after the filing:
- NYSE: CRCL: $110.01 million (50.3% of AUM)
- NASDAQ: MU: $45.58 million (20.9% of AUM)
- NYSEMKT: KORU: $19.89 million (9.1% of AUM)
- NASDAQ: SUPX: $17.12 million (7.8% of AUM)
- NASDAQ: SNDK: $12.64 million (5.8% of AUM)
As of May 4, 2026, shares of Webull Corporation were priced at $7.17, down 50.7% over the past year, underperforming the S&P 500 by 81.70 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close May 4, 2026) | $7.17 |
| Market capitalization | $3.81 billion |
| Revenue (TTM) | $571.00 million |
| Net income (TTM) | $24.77 million |
Company snapshot
- Offers a digital investment platform providing trading services, wealth management product distribution, market data, a user community, and investor education.
- Targets retail investors and individuals seeking accessible, technology-driven investment solutions.
- Operates primarily in the United States, leveraging scalable technology to deliver financial services to a broad customer base.
Webull Corporation is a technology-driven financial services company focused on delivering digital investment tools and trading solutions to retail clients. The company leverages an integrated platform to provide a broad suite of services, including trading, wealth management, and market data, aiming to enhance user engagement and financial literacy.
With a scalable technology infrastructure and a user-centric approach, Webull seeks to differentiate itself through product breadth, ease of use, and educational resources, positioning the company to capture growth in the evolving digital investing landscape.
What this transaction means for investors
Yong Rong (HK) Asset Management, a Hong Kong-based hedge fund, recently disclosed the sale of its entire position in Webull during the first quarter (the three months ending on March 31, 2026). The position was valued at $38.9 million at the end of the prior quarter (the three months ending on Dec. 31, 2025). Here are some key takeaways for investors.
To start, we must discuss Webull’s recent performance. The stock is still quite new, having debuted on April 11, 2025. However, after an initial 300% surge immediately following its initial public offering (IPO), shares have declined significantly. Indeed, for those who acquired shares during the first week following the IPO, their position has plummeted by more than 72%.
At any rate, Webull appears to have gained momentum in recent weeks. Shares have surged by nearly 50% as regulators are poised to hand the stock a catalyst — removal of the so-called Pattern Day Trader (PDT) rule. The removal of this rule should increase retail trading volumes, which should benefit retail brokerages like Webull.
In summary, Webull stock has underperformed in its relatively short time as a public company. However, a pending regulatory change has bolstered the stock in recent weeks, making it more appealing to speculative growth investors.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
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