SCHEDULE: Madison Avenue Group Divests Entire CARGO Therapeutics Stake

Madison Avenue Partners and affiliated entities have filed an amended Schedule 13G, indicating they no longer beneficially own any shares of CARGO Therapeutics, Inc.

Summary

• Madison Avenue Partners, LP, Madison Avenue International LP, EMAI Management, LLC, Madison Avenue GP, LLC, Caraway Jackson Investments LLC, and Eli Samaha (collectively, the "Reporting Persons") have filed an Amendment No. 2 to Schedule 13G.
• The Reporting Persons now beneficially own 0 shares of CARGO Therapeutics, Inc. common stock, representing 0% of the class.
• The beneficial ownership percentage is based on 46,364,311 common shares outstanding as of August 1, 2025, as disclosed in CARGO Therapeutics' Quarterly Report on Form 10-Q filed on August 6, 2025.
• The event requiring this filing occurred on September 30, 2025.
• The Reporting Persons certify that the securities were not acquired or held for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 4

Explanation: The filing indicates a complete divestment by Madison Avenue Partners and its affiliates, moving from a previous beneficial ownership to 0% of CARGO Therapeutics, Inc. This action by a significant institutional investor could be perceived as a negative signal by the market regarding the reporting group's confidence in the issuer, though no reasons for the divestment are provided.

Negatives

• The complete divestment by Madison Avenue Partners and its affiliated entities, reducing their beneficial ownership to 0%, could be interpreted by the market as a negative signal regarding their confidence in CARGO Therapeutics, Inc.

Future Outlook

This filing does not contain any forward-looking statements or guidance from CARGO Therapeutics, Inc. or the Reporting Persons regarding the issuer's future performance.

Management Comments

• Eli Samaha, on behalf of the Reporting Persons, certified that, to the best of his knowledge and belief, the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer.

Industry Context

CARGO Therapeutics operates in the biotechnology sector. A complete divestment by an institutional investor group, such as Madison Avenue Partners, can sometimes influence market perception within the biotech industry, which is often sensitive to investor sentiment and institutional backing.

Stakeholder Impact

• Shareholders of CARGO Therapeutics, Inc. may react to the news of a significant institutional investor group fully divesting its stake, potentially influencing trading behavior and stock price.

Key Dates

Recommendation

The reporting group, Madison Avenue Partners and its affiliates, has fully divested its stake in CARGO Therapeutics, Inc., reducing its beneficial ownership to 0%. This action by a significant institutional investor could signal a lack of confidence or a strategic reallocation of capital away from the issuer, which may prompt other investors to reconsider their positions and potentially lead to a 'sell' recommendation based on this observed institutional behavior.

Keywords

CARGO Therapeutics, 13G, ownership disclosure, Madison Avenue Partners, institutional ownership, divestment, common stock, biotech