140 Summer Partners LP

2. Key Holdings

The portfolio is anchored by large-cap positions in financial services and industrials.

• Capital One Financial (COF): This is the largest holding, comprising 16.85% of the portfolio ($112.85M). The firm increased its stake by 6.5% during the quarter, adding $6.79M, indicating strong conviction in the financial sector, specifically in consumer banking and credit lending.
• CRH PLC: Representing 11.87% of the portfolio ($79.46M), this building materials supplier received the largest relative capital injection among top-tier holds, with a value increase of 4.1%. This suggests a bullish view on infrastructure and construction materials.
• AerCap Holdings (AER): The third-largest holding at 11.70% ($78.38M), AerCap is an aircraft leasing company. Despite being a top position, the firm reduced this stake by 15.0% ($10.79M), potentially taking profits or managing risk exposure to the aviation sector.
• Mr. Cooper Group (07WA): A significant financial services position accounting for 10.43% ($69.85M). Notably, this position was reduced by 29.4% during the quarter, a substantial trim that implies the manager is prioritizing capital elsewhere or de-risking.
• Vistra Corp (VST): The top utility holding represents 8.58% ($57.45M). While a core position, it was reduced by 8.3%, aligning with a trend of trimming exposure to existing winners to fund new ideas.

3. Sector Allocation

The portfolio displays a distinct tilt toward Financial Services and Industrials/Unknown (likely encompassing international industrials or diversified holdings).

• Financial Services: This is the largest identified sector, totaling $237.97M (approximately 35.5% of the portfolio). Concentration is high here, driven primarily by COF, Mr. Cooper, and the new position in PennyMac Financial Services (PFSI).
• Unknown ($298.95M): A significant portion of the portfolio (44.6%) is classified as "Unknown" in the data breakdown. Given the presence of CRH PLC, AerCap, and Viking Holdings in the top holdings list, it is highly probable that these positions fall under this classification due to categorization nuances regarding international entities or sector classification. Adjusting for this, the "Industrials/Travel/Leasing" exposure is massive, likely rivaling or exceeding Financial Services.
• Consumer Cyclical & Utilities: These sectors represent smaller but meaningful slices, at 8.8% (SomnioGroup) and 8.6% (Vistra), respectively. The "Technology" sector is minimal, comprising only 2.4% (Acuity Brands).