New York City-based OCO Capital Partners fully exited its stake in OneMain Holdings (OMF 2.06%), a move reported in a November 14 SEC filing with an estimated $31.35 million net position change.
What Happened
According to a November 14 SEC filing, OCO Capital Partners sold its entire position of 550,000 shares in OneMain Holdings (OMF 2.06%). This sale resulted in a net position change estimated at $31.35 million based on quarterly average prices.
What Else to Know
The OMF position previously reflected 13.5% of fund assets. It now reports holding just three assets.
Top holdings after the filing:
- NASDAQ:VSAT: $175.80 million (56.4% of AUM)
- NASDAQ:COOP: $79.05 million (25.4% of AUM)
- NYSE:APO: $56.64 million (18.2% of AUM)
As of Wednesday, shares of OneMain Holdings were priced at $67.79, up about 30% over the past year and well outperforming the S&P 500, which is instead up about 17% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.87 billion |
| Net income (TTM) | $705.00 million |
| Dividend yield | 6% |
| Price (as of Wednesday) | $67.79 |
Company Snapshot
- OneMain Holdings offers personal loans (secured and unsecured), credit cards, and insurance products, generating revenue primarily from interest income and fees.
- The company operates a branch-based and digital lending model, underwriting and servicing consumer loans across a nationwide network.
- It operates in 44 states with approximately 1,400 branches in the United States.
OneMain Holdings, Inc. is a financial service holding company engaged in consumer finance, personal lending, and related financial products. The company operates through approximately 1,400 branch offices in 44 states in the United States, as well as through its website, to provide consumer loans and related products.
Foolish Take
This move is interesting because OneMain is doing exactly what long-term shareholders might usually want consumer lenders to do late in a cycle: generate capital, tighten credit performance, and return cash aggressively. In the third quarter, OneMain posted diluted EPS of $1.67, up from $1.31 a year earlier, while managed receivables climbed 6% to $25.9 billion. Net charge-offs fell year over year, and capital generation reached $272 million, reflecting improved credit trends and portfolio yield.
Just as important, management leaned into shareholder returns. The company raised its quarterly dividend to $1.05 per share and authorized a new $1 billion buyback program through 2028, replacing the prior authorization. During the quarter alone, it repurchased roughly $32 million of stock.
Against that backdrop, the full exit looks less like a fundamental call on OneMain and more like portfolio concentration management. The position had grown to roughly 13.5% of assets, and trimming risk after a strong run can be prudent. For long-term investors, however, OneMain remains a cash-generating machine whose returns increasingly hinge on disciplined credit and capital allocation, not just loan growth.
Glossary
13F reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
Net position change: The total change in value of a fund's holdings in a security due to buying or selling.
Dividend yield: Annual dividends per share divided by the stock price, expressed as a percentage.
Forward P/E: Price-to-earnings ratio using forecasted earnings for the next year, indicating valuation based on expected profits.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a specified period.
Branch-based lending model: A business approach where loans are originated and serviced through physical branch locations.
Unsecured loan: A loan not backed by collateral; approval is based on the borrower's creditworthiness.
Secured loan: A loan backed by collateral, such as a car or home, which the lender can claim if unpaid.
Net position: The total value of a fund's investment in a particular security after all transactions.
Consumer finance: Financial services focused on providing loans and credit to individual consumers rather than businesses.
Underwriting: The process of evaluating and approving loan applications based on credit risk and borrower qualifications.
