David Nierenberg Exits Cantaloupe Inc, Portfolio Down 10.6%

David Nierenberg's Q2 2025 13F filing reveals his investment moves, including a -10.6% impact from exiting Cantaloupe Inc. He added Lyft Inc and OraSure Technologies Inc, increased stakes in Criteo SA and Green Dot Corp, and exited 10 holdings, including Flushing Financial Corp. His portfolio now consists of a concentrated mix of undervalued, domestic, micro-cap growth companies.

David Nierenberg, the founder and president of Nierenberg Investment Management Company, recently submitted his second-quarter 2025 13F filing, offering insights into his investment activities during this period. The filing highlights significant changes in his portfolio, including a notable exit from Cantaloupe Inc (CTLP) and new additions such as Lyft Inc (LYFT) and OraSure Technologies Inc (OSUR). Additionally, Nierenberg increased stakes in Criteo SA (CRTO) and Green Dot Corp (GDOT) while exiting 10 holdings, including Flushing Financial Corp (FFIC).

Nierenberg's portfolio, which now consists of 49 stocks, is concentrated in undervalued, domestic, micro-cap growth companies. The top holdings include Mr. Cooper Group Inc (COOP) at 23.47%, Potbelly Corp (PBPB) at 19.4%, and EQT Corp (EQT) at 16.63%. The portfolio is diversified across nine industries: Financial Services, Consumer Cyclical, Energy, Communication Services, Technology, Industrials, Healthcare, Basic Materials, and Real Estate.

One of the most impactful moves was Nierenberg's exit from Cantaloupe Inc, which resulted in a -10.6% impact on his portfolio. This decision followed a significant acquisition by Providence Equity Partners, who agreed to pay $848 million for CTLP, reflecting a premium to its trading price. The acquisition was driven by CTLP's strong customer retention rates, valuable patents, and growing profitability.

Among the new additions, Lyft Inc was the most significant, with 42,555 shares added, representing 0.36% of the portfolio. This move aligns with Nierenberg's focus on undervalued domestic companies, as Lyft has been a beneficiary of the growing ride-sharing market. OraSure Technologies Inc, with 11,555 shares, was the second-largest addition, contributing approximately 0.02% to the portfolio.

Nierenberg also increased his stakes in Criteo SA by 101.02% and Green Dot Corp by 337.25%, indicating his confidence in these companies' growth prospects. His increased positions in Criteo SA and Green Dot Corp reflect his belief in the potential of the technology and financial services sectors, respectively.

The filing also reveals that Nierenberg reduced his positions in several stocks, including Mr. Cooper Group Inc and Adtran Holdings Inc. These adjustments suggest a strategic rebalancing of his portfolio to align with his investment thesis and risk tolerance.

Overall, David Nierenberg's Q2 2025 13F filing offers a glimpse into his investment strategy, focusing on undervalued domestic micro-cap growth companies. His portfolio adjustments reflect a cautious yet strategic approach to navigating market volatility and identifying promising investment opportunities.

References:
1. [1] https://finance.yahoo.com/news/datadog-ddog-releases-q2-2025-120025178.html
2. [2] https://www.gurufocus.com/news/3054052/david-nierenbergs-strategic-moves-cantaloupe-inc-exit-impacts-portfolio-by-106
3. [3] https://seekingalpha.com/article/4812068-third-avenue-small-cap-value-fund-why-cantaloupe-and-visteon-made-the-cut