Florida-based Gator Capital Management eliminated its position in OneMain Holdings (OMF +0.16%), reducing exposure by $4.78 million, according to a November 13 SEC filing.

What Happened

Gator Capital Management disclosed in a November 13 SEC filing that it exited its entire holding in OneMain Holdings (OMF +0.16%), selling 83,850 shares. The transaction’s estimated value was $4.78 million based on quarterly average pricing.

What Else to Know

The fund's OneMain Holdings position represented 1.48% of AUM in the previous period -- before the third-quarter sale.

Top holdings after the filing include: 

• NASDAQ: HOOD: $76.63 million (19.7% of AUM)
• NYSE: HOUS: $27.15 million (7.0% of AUM)
• NASDAQ: FCNCA: $16.99 million (4.4% of AUM)
• NYSE: AX: $13.04 million (3.3% of AUM)
• NASDAQ: UMBF: $12.03 million (3.1% of AUM)

As of Friday, shares of OneMain Holdings were priced at $69.08, up 30% over the past year and well outperforming the S&P 500, which is up about 15% in the same period.

Company Overview

Company Snapshot

• OneMain Holdings offers personal loans, credit cards, and insurance products through branch offices and an online platform.
• The company generates revenue primarily from interest income on consumer lending, ancillary insurance products, and related service fees.
• It serves non-prime and near-prime consumers across most U.S. states, focusing on individuals seeking personal financial solutions.

OneMain Holdings provides personal installment loans and related financial products to non-prime consumers in the United States. The company leverages an extensive branch network and digital channels to reach a broad customer base, emphasizing accessible credit solutions and cross-sold insurance offerings.

Foolish Take

Over the past year, OneMain has delivered exactly what income-oriented shareholders might hope for: steady earnings, improving credit metrics, rising dividends, and aggressive buybacks. The stock’s roughly 30% climb reflects that execution, not hype. But portfolio management is more about trade-offs. In the third quarter, OneMain posted $1.67 in GAAP EPS (up from $1.31 one year prior), raised its dividend again to $1.05 per share, and authorized a fresh $1 billion buyback program. Managed receivables grew to nearly $26 billion while net charge-offs continued to trend lower -- meaning that, operationally, the business looks solid.

The decision to exit appears more about concentration and redeployment than concern. OneMain had been a modest position, and trimming a lender after a strong run frees capital for higher-conviction ideas elsewhere in the portfolio. That is especially true when other top holdings skew toward growth and platform-driven businesses rather than consumer credit.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
13F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the SEC.
Stake: The ownership interest or investment a fund or individual holds in a particular company.
Dividend Yield: The annual dividend payment expressed as a percentage of a stock's current price.
Non-prime: Refers to borrowers with lower credit scores, considered higher risk than prime borrowers.
Near-prime: Borrowers whose credit scores are just below prime, typically presenting moderate credit risk.
Ancillary insurance products: Additional insurance offerings sold alongside primary financial products, such as loans.
Installment loans: Loans repaid over time with a set number of scheduled payments, typically monthly.
Cross-sold: The practice of selling additional products or services to existing customers.
Outperforming: Achieving a higher return or better performance compared to a benchmark or index.
Branch network: A group of physical office locations operated by a financial institution to serve customers.
TTM: The 12-month period ending with the most recent quarterly report.