What happened
According to a filing with the Securities and Exchange Commission dated Oct. 6, 2025, Kawa Capital Management, Inc. reduced its stake in Delek US Holdings (DK -6.00%) by 150,000 shares during the third quarter of 2025. The estimated transaction value, based on the average price for the quarter, was $3.92 million. Following the trade, the fund reported a remaining position of 200,000 shares, valued at $6.45 million as of Sept. 30, 2025.
What else to know
This sale brought Delek US Holdings to 11.7% of Kawa Capital Management’s 13F reportable assets as of Sept. 30, 2025, making it the fund's fifth-largest holding.
Top holdings after the filing:
NYSE:BDN: $16.36 million (29.7% of AUM as of Sept. 30, 2025)
NYSE:ONL: $14.78 million (26.8% of AUM as of Sept. 30, 2025)
NYSE:VALE: $11.08 million (20.1% of AUM as of Sept. 30, 2025)
NYSE:GGB: $6.49 million (11.8% of AUM as of the third quarter of 2025)
NYSE:DK: $6.45 million (11.7% of AUM as of the third quarter of 2025)
As of Oct. 5, 2025, shares were priced at $32.21, up 58.1% in the year ending Oct. 5, 2025, outperforming the S&P 500 by 65.3 percentage points in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $10.82 billion |
| Net income (TTM) | ($769.70 million) |
| Dividend yield | 3.2% |
| Price (as of market close Oct. 3, 2025) | $32.21 |
Company snapshot
Delek produces and markets gasoline, diesel, aviation fuel, asphalt, and other petroleum-based products through refining, logistics, and retail operations.
The company generates revenue by processing crude oil at four refineries, distributing refined products via owned and leased pipelines and terminals, and operating a network of convenience stores.
Delek serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, as well as the U.S. government.
Delek US Holdings is an integrated downstream energy company with a diversified portfolio spanning refining, logistics, and retail operations. The company leverages its regional asset base and extensive distribution network to supply petroleum products and related services across key U.S. markets.
Foolish take
Investors probably shouldn't look at Kawa Capital's sale of Delek as a sign the fund is pessimistic about the downstream energy industry. It appears Kawa Capital was locking in profits from a stock that outperformed. Shares of Delek rose sharply in the third quarter. From the end of March through Sep. 30, 2025, the stock notched a 114% gain.
While Delek is the fund's fifth-largest holding, investors should know that it's also Kawa Capital's smallest holding. Its portfolio contained just five stocks at the end of September.
Delek was far and away Kawa Capital's best-performing stock in the third quarter. The runner-up was Orion Properties, which rose 26.2% during the three months ended September.
Brandywine Realty Trust was the largest holding in Kawa Capital's portfolio at the end of September. The real estate investment trust (REIT) has also been its worst performer. Shares of Brandywine Realty Trust, an integrated, full-service real estate company that develops, leases, and manages office buildings, have fallen about 17.5% since the end of March.
Glossary
AUM: Assets under management – The total market value of investments managed by a fund or firm.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the Securities and Exchange Commission (SEC) on Form 13F.
Downstream energy company: A business involved in refining, distributing, and selling petroleum products, rather than extracting crude oil.
Dividend yield: Annual dividend payments divided by the stock's price, expressed as a percentage.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a given period.
Integrated: Operating across multiple stages of an industry’s value chain, such as refining, logistics, and retail.
Convenience stores: Small retail outlets selling everyday items, often attached to gas stations.
TTM: The 12-month period ending with the most recent quarterly report.
Quarter (third quarter of 2025): The third three-month period of a company’s fiscal year, here referring to July–September 2025.
Filing: An official document submitted to a regulatory agency, such as the SEC, disclosing financial or ownership information.
Position: The amount of a particular security or asset held by an investor or fund.
Asset base: The collection of a company’s physical and financial resources used to support operations and growth.
