On November 12, Hong Kong-based Athos Capital disclosed a new position in TXNM Energy (TXNM +0.25%), revealing it acquired 142,842 shares valued at $8.08 million.
What Happened
Athos Capital initiated a new position in TXNM Energy (TXNM +0.25%), reporting ownership of 142,842 shares valued at $8.08 million as of September 30. The transaction was detailed in a Form 13F filed on November 12. The new stake accounts for 5.06% of the fund’s $159.62 million in reportable U.S. equity assets. SEC filing.
What Else to Know
Top holdings after the filing:
- NYSE:BEKE: $47.50 million (30.7% of AUM)
- NYSE:KVUE: $40.58 million (26.2% of AUM)
- NYSE:GTLS: $11.58 million (7.5% of AUM)
- NASDAQ:LBRDK: $10.75 million (6.9% of AUM)
- NYSE:TXNM: $8.08 million (5.2% of AUM)
As of Monday, shares of TXNM Energy were priced at $58.92, up 23% over the past year and outperforming the S&P 500, which is up 16% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market capitalization | $6.42 billion |
| Revenue (TTM) | $2.11 billion |
| Net income (TTM) | $176.92 million |
| Price (as of Monday) | $58.92 |
Company Snapshot
- TXNM Energy provides electricity generation, transmission, and distribution services, as well as regulated transmission and distribution through its PNM and TNMP segments.
- The company operates a regulated utility business model, generating revenue primarily from the sale and delivery of electricity to residential, commercial, and industrial customers in New Mexico and Texas.
- It serves a diversified customer base of end-users of electricity, including households, businesses, and industrial facilities across its service territories.
TXNM Energy is a regulated electric utility with a long-standing presence in the southwestern United States, operating through subsidiaries focused on power generation and grid infrastructure. The company's integrated business model leverages a diverse energy mix, including renewables, to deliver reliable service and stable cash flows. Its regional scale and regulated operations provide a competitive position in the electricity market.
Foolish Take
This move is interesting not only for its timing, but also a ceiling. TXNM Energy is no longer trading like a sleepy regional utility. With shares around $59 and a pending $61.25 per-share acquisition by Blackstone Infrastructure, the upside is effectively capped, but the downside is unusually structured. That asymmetry explains why a concentrated, fundamentally driven fund would be comfortable allocating more than 5% of assets here while keeping even larger weights in names like KE Holdings and Kenvue.
Operationally, TXNM remains steady. Third-quarter GAAP earnings came in at $1.22 per share, with ongoing earnings of $1.33, supported by approved rate increases in New Mexico and transmission recovery in Texas. Revenue rose year over year, and management continues to invest heavily in grid infrastructure and energy storage, including a $78 million battery project tied to existing solar assets. Ultimately, this is not a growth swing, but it is a likely return tied to regulatory approval rather than quarterly beats. Still, there are some risks. TXNM is not reaffirming 2025 guidance while the transaction is pending, and regulatory approvals could stretch into late 2026. But for patient investors, this stake looks less like chasing highs and more like locking in a narrow but visible outcome inside a diversified portfolio.
Glossary
13F: A quarterly SEC filing by institutional investment managers disclosing their holdings of U.S. publicly traded securities.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable holdings: Securities positions that must be disclosed in regulatory filings, such as the 13F, due to size or type.
Initiated a position: When an investor or fund buys shares of a company for the first time.
Regulated utility: A company whose rates and operations are overseen by government agencies to ensure fair pricing and reliable service.
Transmission and distribution: The process of delivering electricity from power plants to end-users through high-voltage lines and local networks.
Diversified customer base: Serving a wide range of clients, such as residential, commercial, and industrial users, reducing reliance on any single group.
Integrated business model: A company structure that combines multiple stages of production or service, such as the generation and delivery of electricity.
Stake: The ownership interest or investment a person or entity holds in a company.
Outperforming: Achieving a higher return or better performance compared to a benchmark, such as the S&P 500.
Subsidiaries: Companies controlled by a parent company, often operating in related or supporting business areas.
TTM: The 12-month period ending with the most recent quarterly report.
