Private Capital's Strategic Moves: Second Quarter 2025 13F Filing Review

Private Capital's Q2 2025 13F filing reveals strategic investments, including a 1.36% portfolio impact from First American Financial Corp (FAF). The firm added 14 stocks, increased stakes in 57 holdings, and exited 7 positions, with notable increases in Ligand Pharmaceuticals (LGND) and International Business Machines (IBM). Private Capital adheres to a value investing philosophy, focusing on acquiring stocks at 40% below intrinsic value and managing downside risk.

Private Capital's Q2 2025 13F filing offers a comprehensive look into the firm's strategic investment decisions. The filing, submitted to the Securities and Exchange Commission (SEC), reveals a portfolio that includes 162 stocks, with notable additions, increases, and exits. Private Capital, founded by Bruce Sherman in 1986, adheres to a value investing philosophy, focusing on acquiring stocks at 40% below their intrinsic value and managing downside risk [2].

Key Additions and Increases

Private Capital added 14 new stocks to its portfolio during the second quarter of 2025. The most significant addition was First American Financial Corp (FAF), with 229,028 shares, accounting for 1.36% of the portfolio and a total value of $14.06 million. The firm also added Papa John's International Inc (PZZA), Molson Coors Beverage Co (TAP), and other notable stocks.

In addition to new additions, Private Capital increased stakes in 57 existing holdings. The most significant increase was in Ligand Pharmaceuticals Inc (LGND), with an additional 81,128 shares, representing a 54.77% increase in share count and a total value of $26.06 million. The firm also increased its stake in International Business Machines Corp (IBM) by 24,419 shares, resulting in a 195.63% increase in share count and a total value of $10.88 million [2].

Exits and Reductions

Private Capital exited 7 holdings in the second quarter of 2025. The firm sold all shares of National Fuel Gas Co (NFG) and American Electric Power Co Inc, resulting in a -0.09% and -0.08% impact on the portfolio, respectively. Additionally, the firm reduced positions in 41 stocks, with notable reductions in Everi Holdings Inc (EVRI) and StoneX Group Inc (SNEX) [2].

Portfolio Overview

At the end of the second quarter of 2025, Private Capital's portfolio was concentrated in 11 industries, with the top holdings including 6.46% in QuinStreet Inc (QNST), 5.74% in Harrow Inc (HROW), and 4.62% in Barrett Business Services Inc (BBSI). The portfolio's concentration in various sectors reflects Private Capital's diversified investment approach [2].

Conclusion

Private Capital's Q2 2025 13F filing highlights the firm's strategic focus on value investing and long-term portfolio gains. The addition of First American Financial Corp, increases in Ligand Pharmaceuticals and IBM, and selective exits and reductions demonstrate the firm's commitment to identifying undervalued opportunities and managing risk. Investors and financial professionals should closely monitor Private Capital's portfolio for further insights into its investment strategy.

References:
[1] https://www.danielscrivner.com/stockbridge-trades-and-holdings-q2-2025/
[2] https://finance.yahoo.com/news/private-capitals-strategic-moves-first-031722825.html