CastleKnight De-Risks Holdings
CastleKnight Management Opts for Selective De-Risking, Trimming Stakes in Several Public Holdings
Anonymous
Key Points
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In Ingevity, CastleKnight reported owning 74,443 shares after selling 25,300 shares (25.4% cut), and the filing period also included an insider trade: SVP Terrance M. Dyer sold 496 shares at an average price of $68.49, reducing his stake by 6.44% (to 7,202 shares).
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In Ingevity, other investors’ increases were quantified in the same disclosures—for example, Simcoe Capital Management LLC boosted its stake by 49.4%, buying an additional 308,520 shares to reach 933,455 shares valued at about $51.5 million.
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In Ardent Health, CastleKnight held 1,167,947 shares after selling 570,969 shares (a 32.8% trim), while some peers bought heavily—Goldentree Asset Management increased its position by 99.7% and Goldman Sachs increased it by 1,684.9%—and analyst coverage in the same period included Weiss Ratings restating a “sell (d+)” rating (June 12).
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In Magnera, CastleKnight cut its position to 183,495 shares after selling 72,505 (28.3% reduction), and Wells Fargo simultaneously raised its Magnera target price from $12.00 to $13.00 while reiterating an “equal weight” rating.
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In Mattel, CastleKnight reduced its stake by 43.4%—selling 266,100 shares to hold 346,500 shares worth about $6.88 million—and the report notes hedge funds and other institutional investors own 97.15% of Mattel’s stock.
CastleKnight Management LP quietly trimmed five major stock positions in its most recent 13F filings, cutting its Mattel stake by 43.4% and selling off more than a third of its Macy's shares, according to MarketBeat. The New York-based hedge fund, founded by Tiger Cub alumnus Aaron Cowen, appears to be locking in gains or limiting risk across consumer and healthcare names — even as some of Wall Street's biggest players are moving in the opposite direction.
The filings, dated June 18, 2026, reveal a pattern of selective de-risking rather than a full retreat. CastleKnight still holds positions worth tens of millions of dollars across the five companies it trimmed.
CastleKnight Cuts Mattel and Macy's by Nearly Half
The deepest cut came in Mattel. CastleKnight sold 266,100 shares, reducing its stake by 43.4% to 346,500 shares worth roughly $6.88 million, according to MarketBeat. The toy giant is already under pressure from activist investor Southeastern Asset Management, which publicly urged Mattel's CEO Ynon Kreiz in May 2026 to consider a go-private deal or strategic sale, per TIKR.com.
In Macy's, CastleKnight sold 153,760 shares — a 34.5% reduction — leaving it with 291,740 shares valued at about $6.4 million. The cut reflects broader hedge fund concern about department store chains as consumer spending shifts away from traditional retail, according to Fintel.
Goldman Sachs Piles Into Ardent Health as CastleKnight Exits
CastleKnight's most striking move may be in Ardent Health. The fund sold 570,969 shares — a 32.8% trim — leaving it with 1,167,947 shares worth about $10.1 million. That's a sharp pullback from a company already facing headwinds: Weiss Ratings restated a "sell (d+)" rating on June 12, and Ardent Health is fighting a securities class action lawsuit over alleged failures to disclose problems with accounts receivable, according to MarketBeat.
But not everyone is running. Goldman Sachs grew its Ardent Health position by a stunning 1,684.9%, while Goldentree Asset Management nearly doubled its stake — up 99.7%. New CEO Dave Caspers, appointed June 2, 2026, now inherits a turnaround effort following a $43 million revenue adjustment in late 2025, per Healthcare Dive.
Ingevity Trim Comes Despite a Strong Earnings Beat
CastleKnight sold 25,300 shares of Ingevity (NGVT), cutting its position by 25.4% to 74,443 shares. That's roughly 0.21% of the specialty chemicals company. The sale is notable because Ingevity beat Q1 2026 earnings estimates by 38.5%, though it missed revenue targets due to weakness in its Performance Chemicals segment. Platforms like InvestingPro had flagged the stock as potentially overvalued after a 64% gain over the prior year.
Other investors saw it differently. Simcoe Capital Management LLC bought an additional 308,520 shares — a 49.4% increase — to reach 933,455 shares valued at about $51.5 million, according to Stockzoa. On May 28, Ingevity SVP Terrance M. Dyer also sold 496 shares at $68.49 each, trimming his personal stake by 6.44% to 7,202 shares, per an SEC Form 4 filing.
Magnera Divestiture and Wells Fargo Upgrade Add Backdrop to Trim
CastleKnight reduced its Magnera (MAGN) stake by 28.3%, selling 72,505 shares to hold 183,495 shares worth about $2.4 million. Magnera was formed in November 2024 through a $3.6 billion merger creating the world's largest nonwovens manufacturer, according to Packaging Dive. The company carries heavy debt and holds an S&P Global "B+" credit rating.
Despite CastleKnight's exit, Wells Fargo analyst Gabe Hajde raised Magnera's price target from $12.00 to $13.00 while keeping an "Equal Weight" rating. On June 15, Magnera announced the sale of its Caerphilly, UK operations to Polyart Group, a move CEO Curt Begle called part of staying "steadfast during this time of significant global uncertainty," per GlobeNewswire. The company is targeting $100 million in synergies and aims to push debt below 6x by late 2026.
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