SPRUCE HOUSE INVESTMENT MANAGEMENT LLC

The AUM reduction from $3.45B to $2.80B is the headline number, and it requires context. The prior quarter's $3.45B implies Spruce House ran a larger book in Q4 2025, and the Q1 compression comes from both net selling and the natural depreciation that accompanies Q1 volatility in equity markets. The reduction is not, by itself, a strategy signal — funds shrink in down quarters. What IS a strategy signal is the concentration level that accompanied the shrinkage. Top names moved to larger weights, and the sold-out positions (12 positions fully liquidated, including prior-quarter stocks that appeared in the data) represent deliberate pruning rather than forced selling.

The remaining book has a distinct bias: JPMorgan, BNY Mellon, and other financial-services names anchor the financial pillar; Microsoft and Alphabet provide the technology growth core; healthcare names add the defensive overlay. That combination is a common quality mandate profile, but Spruce House's execution is distinctive in its narrowness. A 22-holding book that runs 12 full exits in a quarter is a manager actively curating — deciding what does not belong rather than what does.