M.D. Sass Exits Sallie Mae -- Selling Its Entire $33.1 Million Stake
Key Points
M.D. Sass sold 1,399,804 SLM shares during Q1 2026, with an estimated transaction value of $33.1 million.
The fund's SLM stake dropped from roughly 3.0% of its assets under management (AUM) to zero, representing a complete exit from the position.
SLM shares have declined about 29% over the past year, underperforming the S&P 500 by roughly 52 percentage points during that stretch.
What happened
According to a recent SEC filing, M.D. Sass, LLC sold 1,399,804 shares of SLM Corporation during the first quarter of 2026. The estimated transaction value was $33.1 million, based on the quarter’s average closing price.
What else to know
- M.D. Sass fully exited SLM -- the stake now makes up 0% of 13F reportable assets, down from 3.0% in the previous quarter.
- Top holdings after the filing include:
- NASDAQ: HSIC: $93.8 million (7.1% of AUM)
- NYSE: WMB: $85.4 million (6.5% of AUM)
- NYSE: AME: $77.6 million (5.9% of AUM)
- NYSE: CLH: $72.4 million (5.5% of AUM)
- NYSE: SASS: $66.9 million (5.1% of AUM)
- As of June 8, 2026, SLM shares were trading at $22.39 -- down about 29% over the past year, and underperforming the S&P 500 by roughly 52 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Market Cap | $4.2 billion |
| Revenue (TTM) | $1.9 billion |
| Net Income (TTM) | $732.9 million |
| Dividend Yield | 2.32% |
Company Snapshot
Sallie Mae is the largest provider of private student loans in the United States, helping students and families finance higher education through a focused suite of banking and lending products.
- Originates and services private education loans, with average loans outstanding of approximately $23.3 billion as of Q1 2026.
- Offers retail deposit accounts and credit card products to support the company's funding and liquidity needs.
- Operates as Sallie Mae Bank, a federally chartered bank headquartered in Newark, Delaware.
What this transaction means for investors
M.D. Sass's complete exit from SLM is an interesting move. The position previously accounted for roughly 3% of the fund's total reportable holdings, so the decision to sell every share in a single quarter is worth exploring, even if the rationale isn't spelled out in the filing itself.
That said, there's a meaningful disconnect between this institutional exit and SLM's most recent results. The company delivered a solid Q1 2026 -- diluted earnings per share came in at $1.54, up from $1.40 a year earlier, and private education loan originations grew 5% from the prior-year quarter. Management liked what they saw enough to raise their full-year 2026 earnings guidance to a range of $3.10 to $3.20 per diluted share.
Still, SLM shares have struggled. The stock is down roughly 29% over the past year -- steep underperformance relative to the broader market -- and analysts project earnings to decline modestly over the next few years, in part due to uncertainty around federal student loan policy and longer-term enrollment trends. The stock price drop itself may have accelerated M.D. Sass's decision; the fund's SLM position had already lost significant value before the sale.
For long-term investors, this is a reminder that institutional selling doesn't always signal a broken business. SLM remains the dominant name in private student lending, and for investors who believe in the long-term demand for higher education financing, the sell-off may be worth a closer look. Those who prefer broader exposure to the consumer finance space might also consider ETFs like the iShares U.S. Financial Services ETF (NYSEMKT:IYG) or the SPDR S&P Bank ETF (NYSEMKT:KBE), which provide diversified access to the sector without the concentration risk of a single lender.
SLM is an advertising partner of Motley Fool Money. Andy Gould has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.