SCHEDULE: Bandera Partners Boosts Stake in Star Group to 8.7%

Bandera Partners LLC and its managing members, Gregory Bylinsky and Jefferson Gramm, have disclosed an increased beneficial ownership in Star Group, L.P., reaching up to 8.7% of common units.

Summary

• Bandera Partners LLC, Gregory Bylinsky, and Jefferson Gramm collectively reported beneficial ownership in STAR GROUP, L.P.
• Jefferson Gramm holds the largest individual beneficial ownership at 2,951,843 Common Units, representing 8.7% of the class.
• Bandera Partners LLC beneficially owns 2,745,360 Common Units, equating to 8.1% of the class.
• Gregory Bylinsky beneficially owns 2,750,187 Common Units, also representing 8.1% of the class.
• The ownership percentages are based on 33,865,975 Common Units outstanding as of May 30, 2025, after accounting for a 700,000 unit repurchase by the Issuer.
• Bandera Partners LLC serves as the investment manager for Bandera Master Fund L.P., which directly holds 2,745,360 Common Units.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 6

Explanation: The filing indicates a significant and slightly increased stake by an investment firm and its principals, suggesting confidence. However, the mention of potential Rule 14a-11 nominations introduces a minor element of potential future governance activity, which could be seen as neutral to slightly positive depending on the investor's perspective.

Positives

• Increased stake by an investment firm and its principals may signal confidence in the company's future prospects.
• The disclosure explicitly states the holdings are for ordinary course of business, not for control, which can reduce concerns about activist intervention, though a nomination under Rule 14a-11 is mentioned.

Risks

• The filing mentions "activities solely in connection with a nomination under Rule 14a-11," which could imply potential future proxy contests or efforts to influence board composition, introducing a degree of governance risk or potential for management distraction.

Future Outlook

NA

Industry Context

This filing indicates a significant passive investment by an institutional investor in STAR GROUP, L.P., a company likely operating in the energy distribution or related services sector given its name. Such disclosures are common for publicly traded companies and reflect investor interest.

Corporate Governance

Stakeholder Impact

• Shareholders: Increased institutional ownership may provide a perception of stability and confidence. Potential for future shareholder activism (Rule 14a-11 nomination) could lead to governance changes or strategic shifts, which may impact shareholder value.

Next Steps

• Monitor for any future filings related to Rule 14a-11 nominations by the reporting persons.
• Observe any further changes in beneficial ownership by Bandera Partners LLC or its managing members.

Key Dates

Recommendation

The filing indicates a substantial and slightly increased stake by a sophisticated investment firm and its principals, which generally signals confidence. However, the explicit mention of potential Rule 14a-11 nominations suggests a possible future intent to influence governance, which could introduce uncertainty or lead to strategic changes. For a seasoned investor, this situation warrants a 'hold' to observe how these potential governance activities unfold and their impact on the company's strategy and performance before making a more definitive 'buy' or 'sell' decision.

Keywords

STAR GROUP L.P., Bandera Partners, Schedule 13G, Beneficial Ownership, Common Units, Investment Manager, Institutional Ownership, SEC Filing, 85512C105