Sander Capital Advisors disclosed in a U.S. Securities and Exchange Commission filing that it fully exited its Adobe (ADBE +0.04%) position in a sale valued at approximately $3.49 million as of September 30, 2025.
What Happened
Sander Capital Advisors reported a complete sale of its Adobe stake according to a U.S. Securities and Exchange Commission filing dated October 20, 2025 (SEC filing). The fund exited a holding of 9,013 shares, with the estimated value of the trade totaling approximately $3.49 million, based on the average share price for Q3 2025. This marks the full liquidation of the fund’s Adobe position.
What Else to Know
Sander Capital Advisors sold out its Adobe stake; the position now represents 0% of reported assets under management as of September 30, 2025.
Top holdings after the filing:
- NASDAQ:MSFT: $114.08 million (47.8% of AUM) as of September 30, 2025
- NASDAQ:AAPL: $31.20 million (13.1% of AUM) as of September 30, 2025
- NASDAQ:AMZN: $30.85 million (12.9% of AUM) as of September 30, 2025
- NASDAQ:GOOGL: $24.87 million (10.4% of AUM) as of September 30, 2025
- NYSE:ORCL: $23.74 million (10.0% of AUM) as of September 30, 2025
As of October 20, 2025, Adobe shares were priced at $343.40, down 31.0% year-to-date.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $23.18 billion |
| Net Income (TTM) | $6.96 billion |
| Market Capitalization | $143.75 billion |
| Price (as of market close 10/20/25) | $343.40 |
Company Snapshot
Adobe operates as a diversified software company with major digital media and marketing software segments worldwide. The company offers a diversified portfolio of software solutions, including Creative Cloud, Document Cloud, and Experience Cloud, generating revenue through subscription-based services and cloud platforms.
Adobe operates a model that includes cloud-based software-as-a-service (SaaS) offerings, reaching both individual and enterprise customers through direct sales, online channels, and a global reseller network. It serves a broad customer base comprising content creators, marketers, enterprises, agencies, and educators worldwide.
Adobe uses a subscription model for its creative products and has reported consistent revenue growth and profitability. The company’s integrated cloud platforms and best-in-class creative tools position it as a critical partner for enterprises and individual creators seeking to design, publish, and optimize digital content. Adobe offers scalable SaaS products and serves a wide range of industries through its extensive ecosystem.
Foolish Take
Sander Capital's decision to exit its $3.5 million stake in Adobe is another sign that institutional support for Adobe is waning.
What's more, it's another challenge for a company that seems to be struggling as AI-powered tools become ever more common and powerful. As a result, Adobe stock has consistently underperformed relative to technology sector and the broader stock market.
Since 2022, shares of Adobe have generated a total return of 14%, equating to a compound annual growth rate (CAGR) of 4.3%. Meanwhile, the S&P 500 has generated a total return of 92% over the same period, with a CAGR of 24.3%. The technology sector, as represented by the Technology Select Sector SPDR Fund (XLK), has performed even better, logging a total return of 144%, with a CAGR of 34.5%.
All that said, Adobe's financials are far from collapsing. Since 2022, the company's revenue has increased by about 33%; net income has grown by 46%. Margins have widened, with the company's operating margin standing at almost 37% -- a near-record level for the company.
The situation paints a mixed picture for Adobe. The company is performing alright -- but risks abound due to the rise of AI and threats to the company's business model. For some institutional investors, the risks appear to outweigh the reward. Retail investors should take note.
Glossary
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset held by an investor or fund.
Liquidation: The process of selling all holdings in a particular security, resulting in a zero position.
Reportable Assets: Investments that must be disclosed in regulatory filings due to size or regulatory requirements.
Stake: The ownership interest or investment held in a company by an individual or institution.
Subscription-based Services: Business model where customers pay recurring fees for ongoing access to products or services.
Cloud Platforms: Online infrastructure and services that allow users to access software and data over the internet.
Software-as-a-Service (SaaS): Software delivered via the internet, typically through a subscription, without local installation.
Reseller Network: Third-party companies authorized to sell a firm's products or services to end customers.
Filing: An official document submitted to a regulatory authority, often disclosing financial or operational information.
TTM: The 12-month period ending with the most recent quarterly report.
