Steadfast Capital Liquidates Pool Corporation Position With $156 Million Exit
Key Points
Steadfast sold 504,418 shares of Pool Corporation, with an estimated trade size of $156.40 million based on the quarterly average price.
Quarter-end position value declined by $156.40 million, reflecting both trading and price movement effects.
The change represented 2.69% of Steadfast Capital Management LP’s 13F reportable assets under management.
Post-trade, the fund holds zero shares in Pool Corporation, with a reported position value of $0.
The position previously accounted for 2.7% of the fund’s AUM as of the prior quarter, marking a significant allocation shift.
What happened
According to a Feb. 17, 2026, SEC filing, Steadfast Capital Management LP reported the sale of its entire Pool Corporation (NASDAQ:POOL) holding -- a reduction of 504,418 shares. The estimated transaction value was approximately $156.40 million, calculated using the quarter’s average share price. The quarter-end position value for Pool Corporation decreased by $156.40 million, encompassing both the share sale and any price changes during the period.
What else to know
The fund sold out of Pool Corporation, taking the position from 2.7% of its AUM in the prior quarter to zero.
- Top five holdings as of March 4, 2026:
- Planet Fitness: $559.36 million (9.0% of AUM)
- Amazon: $372.44 million (6.0% of AUM)
- Alphabet: $301.54 million (4.9% of AUM)
- Wingstop: $226.82 million (3.7% of AUM)
- Texas Roadhouse: $217.05 million (3.5% of AUM)
As of March 4, 2026, Pool Corporation shares were priced at $220.31, down 36.0% over the prior year, underperforming the S&P 500 by 53 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2026-03-04) | $220.31 |
| Market Capitalization | $8.21 billion |
| Revenue (TTM) | $5.29 billion |
| Net Income (TTM) | $404.2 million |
Company snapshot
Pool:
- Offers a comprehensive range of swimming pool supplies, equipment, maintenance products, repair parts, and outdoor living accessories, with revenue primarily generated from the distribution of these goods.
- Operates as a wholesale distributor, sourcing products from manufacturers and supplying them through a network of sales centers to professional and commercial customers.
- Has main customer segments like pool builders, remodelers, specialty retailers, service businesses, irrigation contractors, and commercial facility operators.
Pool Corporation is a leading distributor of swimming pool and outdoor living products, serving both residential and commercial markets across North America, Europe, and Australia. The company leverages its extensive distribution network and broad product portfolio to maintain a strong market presence and support recurring demand from professional customers.
What this transaction means for investors
Just two quarters after opening a position in Pool Corporation at around $291 per share, Steadfast Capital has liquidated its position at a double-digit-percentage loss in Q4. It’s possible the firm was trying to time the trough of Pool’s cyclical operations, but it can’t be known for sure. While the prospect of falling interest rates may have made the stock look like a solid buying opportunity as the housing market might rebound, that has yet to materialize, and rates have not dropped as quickly as once predicted.
That said, I’m not as interested in trying to time the exact bottom of Pool’s current down cycle. My daughter and I both own shares of the company and will continue to buy shares from time to time as we plan to hold the stock for a decade or more. Pool dominates its niche and has grown total returns by 21% since its IPO, so I am confident in the company’s turnaround ability. With shares now trading at just 1.55 sales -- its lowest level since 2017 -- I’ll happily scoop up shares today while receiving a steadily growing dividend with a 2.3% yield.
While Pool’s sales growth is primarily tied to new home starts, 86% of its revenue comes from maintenance, remodeling, and renovation purchases that are mandatory and non-discretionary. This makes the stock much less “risky” than it appears -- at least to me. I can’t tell you when Pool will return to its previous high-growth days, but it will eventually, and I’m happy to collect a well-funded dividend while I wait. I understand Steadfast’s decision to sell, but I’d only consider buying at today’s discount given the stock’s well-funded dividend and the market’s harsh pessimism.
Josh Kohn-Lindquist has positions in Alphabet, Pool, and Wingstop. The Motley Fool has positions in and recommends Alphabet, Amazon, Planet Fitness, and Texas Roadhouse. The Motley Fool recommends Pool and Wingstop. The Motley Fool has a disclosure policy.