Kessler Investment Group Sells $11.5 Million Robinhood Stake as Stock Hits Record Highs

On Thursday, Indiana-based Kessler Investment Group disclosed in a U.S. Securities and Exchange Commission filing that it sold out its Robinhood (HOOD -8.77%) position, an estimated transaction value of $11.5 million.

What Happened

Kessler Investment Group fully exited its position in Robinhood during the third quarter, according to a U.S. Securities and Exchange Commission filing released on Thursday. The fund sold all 122,349 shares for an estimated $11.5 million. The position previously accounted for 4.7% of fund assets.

What Else to Know

Top holdings after the filing:

• NASDAQ:GOOGL: $15.7 million (6.8% of AUM)
• NASDAQ:CRWD: $13.5 million (5.8% of AUM)
• NYSE:DELL: $12.2 million (5.3% of AUM)
• NASDAQ:ROKU: $11.5 million (4.9% of AUM)
• NYSE:ANET: $11.4 million (4.9% of AUM)

As of Friday morning, Robinhood shares were priced at $152.14, up a staggering 497% over the past year, and far outperforming the S&P 500's nearly 17% gain.

Company Overview

Company Snapshot

• Robinhood offers a digital-first financial services platform for trading stocks, ETFs, options, gold, and cryptocurrencies.
• The brokerage operates on a commission-free model, generating revenue from payment for order flow, interest on cash balances, and premium subscriptions.
• Robinhood serves a large U.S. retail investor base, focusing on accessibility and a streamlined user experience.

Robinhood operates a digital-first investment platform in the United States. It offers a streamlined user experience and a broad product offering, aiming to make investing accessible to a wide range of retail customers.

Foolish Take

Kessler Investment Group’s $11.5 million sale of its Robinhood Markets (NASDAQ: HOOD) stake is one of at least three high-flying tech exits the Indiana-based fund disclosed this quarter, along with divestments of Palantir Technologies and Shopify. The move comes even as Robinhood shares continue to hit record highs, up nearly 500% in the past year and handily eclipsing the S&P 500’s 17% gain.

Robinhood’s second-quarter earnings underscored the strength behind that rally: Revenue climbed 45% year-over-year to $989 million, and net income more than doubled to $386 million, or $0.42 per share. Transaction-based revenue surged 65%, led by options and crypto trading, while assets on the platform jumped 99% to $279 billion. The company also closed its Bitstamp acquisition, adding global crypto licenses and an institutional foothold, and expanded into 30 European markets.

CEO Vlad Tenev called tokenization “the biggest innovation in a decade,” reflecting Robinhood’s ambitions well beyond retail trading. So why sell? Well, with the stock’s meteoric rise and rich valuation, the move might be part of a disciplined effort to lock in outsized gains while keeping tech exposure diversified.

Glossary

13F reportable assets: Assets that institutional investment managers must report quarterly to the U.S. Securities and Exchange Commission, disclosing certain equity holdings.

AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm on behalf of clients.

Quarterly average price: The average price of a security calculated over a specific quarter, used for estimating transaction values.

Stake: The ownership interest or investment held in a particular company or asset.

Position: The amount of a particular security or asset owned by an investor or fund.

Outperforming: Achieving a higher return compared to a benchmark or index over a specific period.

Filing: An official document submitted to a regulatory authority, often containing financial or ownership information.

Digital-first: A business approach prioritizing online platforms and technology over traditional physical channels.

Platform: A digital service or system that enables users to access financial products or services.

TTM: The 12-month period ending with the most recent quarterly report.