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Pelican Bay Capital Exits CME Group and On Semiconductor After Rally, Cites Portfolio Limits

The firm cited valuation discipline under a strict 20-stock cap.

Overview

  • PBCM disclosed in its Q4 2025 investor letter that it sold CME Group and On Semiconductor to make room for a new holding while maintaining a 20-stock portfolio.
  • PBCM said CME had reached the high end of fair value, with the stock closing at $297.38 on Feb. 5 after a 13.31% one-month gain and a 21.46% 52-week rise.
  • CME reported $1.65 billion in Q4 2025 revenue, an 8% year-over-year increase, underscoring solid operating performance during the period.
  • The ON sale reflected a prolonged slump in EV demand tied to changes in U.S. EV tax credits and automakers’ plans to scale back production capacity.
  • PBCM’s Concentrated Value Strategy returned 8.5% in Q4 and 20.6% for 2025, outperforming the Russell 1000 Value Index as AI-related stocks and commodities drove results.