Mangrove Partners Im 13F Portfolio

The biggest dollars went into connectivity and the components that feed it, not into anything compute-adjacent. That is a deliberate stance against the crowded AI trade, and several of these entries were bought before the tape agreed.

• Vistance Networks: the quarter's headline add, $91.3M, now 6.01% of the book. Broadband access, fiber and wireless networking gear — a levered turnaround trading 24.1% below the fund's $15.20 average cost.
• Bel Fuse: the share count jumped 8,105.8% to a $30.5M position. Electronic components — magnetics, connectors, power — a picks-and-shovels way to own networking and defense buildouts, sitting 5.6% above cost.
• Open Text: up 64.9% to $36.3M and held 2.4% below cost. Cheap enterprise information-management software with a deleveraging story attached.
• Acadia Healthcare: new at $41.2M and 2.71% of the book. Behavioral-health capacity is genuinely supply-constrained, and this position is already 16.6% above cost.
• Aptiv: new at $37.7M and 23.1% below cost. Auto electrical architecture was sold off on tariff and EV-slowdown fears; Mangrove is buying the cash flow, not the narrative.

Almost all of the quarter's selling traces back to one line. Ethereum is the funding source: the Grayscale Ethereum Staking position fell 37.2%, a $19.8M reduction, and still sits at 2.2% of the book. Mangrove is monetizing an asset it no longer needs to make its point.

• Grayscale Ethereum Staking: -37.2% and -$19.8M; still 2.2%, still 24.9% below the average cost. This is capital recycling as much as a crypto call.
• Indivior: -2.4% and -$2.7M. A 188.0% winner trimmed at the margin; at 7.22% it stays the largest position, which makes this position-sizing rather than a broken thesis.
• Atmus Filtration: -7.9% and -$5.3M, but still 4.06% of the book and 99.3% above cost.
• Axiom Intelligence Acquisition: -49.0%. The blank-check stake was halved, consistent with a manager culling SPACs rather than adding them.
• Flywire: -1.0%, effectively cosmetic, leaving a 3.44% position intact.

The pattern matters more than any single trim: the fund is not de-risking, it is raising cash from a position it has stopped believing in and from the edges of winners it still owns.

The headline move looks dramatic and is narrower than it appears. Technology goes from 5.60% to 13.54% of the book, but that is essentially two names — Vistance and Open Text — and Vistance is a communications equipment company the screener happens to file under technology.

• Consumer discretionary and industrials fall a combined 3.5 points, yet the industrials bucket is not industrial: it carries Bio-Rad, a life-sciences tools maker, and REX American Resources, an ethanol producer.
• Utilities, real estate and financials drop roughly 4.8 points combined. Utilities at 7.39% includes ONEOK, a midstream pipeline operator rather than a regulated utility.
• The real-estate sleeve is more than half payments software: Flywire and FIS together are 5.12 points out of that bucket's 7.82%. Genuine property exposure is Apartment Investment & Management at 0.87% plus Millrose, filed under finance.
• Unclassified rises to 13.97%: Ethereum shrank, but the iShares Russell 2000 ETF, Bel Fuse and Greif were added.

Strip out the labeling noise and the real shift is away from rate-sensitive income and financials toward connectivity hardware, cheap software and selective small-cap cyclicals.

Mangrove needs three things to work at once: a networking refresh cycle that rewards broadband and fiber suppliers, a re-rating of small-cap value, and company-specific deleveraging at Vistance. It is a bet that does not require AI capex to keep compounding, which is exactly why it looks odd next to most 13F books this quarter.

The clearest thing to watch is whether Vistance gets more money. At 24.1% below the average cost, a further add would be the strongest conviction signal this book can send; a stall or a trim would suggest the turnaround is drifting. Ethereum remains a live funding lever at 2.2% — rallies there probably get sold into more value.

The blank-check sleeve, roughly two dozen vehicles worth about 8% of the book, is dormant optionality on deal flow rather than thesis exposure. Meanwhile Acadia, Aptiv and Apartment Investment & Management were all bought near or below cost, which tells you the manager is content to be early.

A book with 28.17% three-year annualized performance has earned the right to be early. What it cannot afford is being early on a levered supplier into a flat capex cycle.