SCHEDULE 13D/A: Kanen Wealth Management Group Reduces Stake in TheRealReal Amid Significant Stock Sales
Beneficial Ownership Report
Kanen Wealth Management LLC and its affiliated funds, including Philotimo Fund, LP and Philotimo Focused Growth & Income Fund, have disclosed a reduction in their beneficial ownership of TheRealReal, Inc. common stock through a series of sales.
Summary
- Kanen Wealth Management LLC (KWM) and its affiliates, Philotimo Fund, LP, Philotimo Focused Growth & Income Fund (PHLOX), and David Kanen, collectively reported beneficial ownership of 6,330,517 shares of TheRealReal, Inc. common stock as of January 6, 2025.
- This aggregate ownership represents approximately 5.8% of TheRealReal's outstanding shares, based on 109,691,196 shares outstanding as of October 30, 2024.
- Philotimo Fund, LP beneficially owned 3,495,965 shares (3.2%), with an aggregate purchase price of approximately $10,758,084.
- Philotimo Focused Growth & Income Fund beneficially owned 1,941,860 shares (1.8%), with an aggregate purchase price of approximately $5,611,162.
- KWM beneficially owned 6,308,323 shares (5.8%), including shares held by Philotimo, PHLOX, and 870,498 shares in Managed Accounts, which had an aggregate purchase price of approximately $2,308,583.
- David Kanen beneficially owned 6,330,517 shares (5.8%), including his direct holdings of 22,194 shares (aggregate purchase price of approximately $54,448) and shares beneficially owned by KWM.
- The shares were purchased using working capital and funds for customer accounts, which may include margin loans.
- The filing details numerous sales of common stock by all reporting persons between November 25, 2024, and January 3, 2025, with sale prices ranging from $4.9329 to $11.0215 per share.
Sentiment
Score: 3
Explanation: The sentiment is negative as a significant shareholder group has been actively selling shares, indicating a reduction in their investment in the company.
Negatives
- A significant shareholder group, Kanen Wealth Management and its affiliates, has been actively selling shares of TheRealReal, indicating a reduction in their stake.
- The sales occurred across various entities within the group, suggesting a coordinated reduction in exposure to the company's stock.
Future Outlook
The document does not provide any forward-looking statements or guidance from TheRealReal, Inc. or the reporting persons regarding the company's future performance.
Industry Context
This filing reflects a significant investor's decision to reduce exposure to TheRealReal, Inc., a company operating in the luxury resale market. Such actions by large institutional investors can sometimes signal a shift in their investment thesis or perception of market conditions within the industry, though no specific reasons are provided in this filing.
Stakeholder Impact
- Shareholders: The reported sales by a significant investor group could lead to increased selling pressure on the stock, potentially impacting share price negatively.
Key Dates
| Date | Description |
|---|---|
| 2024-10-30 | Date as of which 109,691,196 shares of TheRealReal, Inc. common stock were reported outstanding in the Issuer's Quarterly Report on Form 10-Q. |
| 2024-11-04 | Date TheRealReal, Inc. filed its Quarterly Report on Form 10-Q with the SEC. |
| 2024-11-25 | Earliest reported sale date by Kanen Wealth Management LLC (Managed Accounts). |
| 2024-12-16 | Earliest reported sale date by David L. Kanen. |
| 2024-12-23 | Sale date by Philotimo Focused Growth & Income Fund. |
| 2025-01-02 | Date of event which required the filing of this Schedule 13D Amendment No. 1; also a sale date by Philotimo Fund, LP. |
| 2025-01-03 | Sale date by Philotimo Fund, LP. |
| 2025-01-06 | Close of business date as of which beneficial ownership percentages were calculated for all reporting persons. |
Keywords
TheRealReal, TRRR, SEC filing, Schedule 13D, beneficial ownership, Kanen Wealth Management, Philotimo Fund, stock sales, investor activity, shareholder stake
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