On November 14, BeaconLight Capital, an investment management firm headquartered in New York City, disclosed through a Securities and Exchange Commission (SEC) filing that it had slightly decreased its holdings in Resideo Technologies Inc. (ticker: REZI), a residential comfort and security solutions provider. According to the Form 13-F filed, the fund reduced its position by 175,624 shares in the third quarter. Despite this reduction, BeaconLight retains a considerable equity stake in Resideo, with 645,028 shares remaining under its management, valued at approximately $27.85 million as of the end of the quarter.
This retained holding represents 13.74% of BeaconLight's total $202.73 million in reportable U.S. equity assets, indicating that Resideo still constitutes the firm’s most significant individual stock investment. Prior to the share sale, Resideo accounted for about 10.33% of the fund's assets under management (AUM), making the current proportion a higher percentage of the slightly adjusted portfolio value.
The fund’s portfolio, as outlined in the filing, shows a concentration in industrial and infrastructure-related equities. Besides Resideo, other leading positions include Costamare Inc. (NYSE: CSTM) at $18.95 million (9.35% of AUM), Cheniere Energy Inc. (NYSE: LNG) at $14.13 million (6.97%), Sensient Technologies Corporation (NYSE: SXT) at $10.72 million (5.29%), and Teck Resources Limited (NYSE: TECK) with a $10.26 million holding (5.06% of AUM).
Resideo Technologies has experienced a remarkable appreciation of 48% over the last year, with its share price closing at $35.99 recently. This performance significantly outpaces the S&P 500 index’s 15% gain during the same period, highlighting the company’s strong market momentum.
Financially, Resideo reported trailing twelve-month revenues of $7.44 billion and net income of $640 million, reflecting solid profitability. The company operates primarily through two segments: Products & Solutions, and ADI Global Distribution. It designs, manufactures, and distributes an array of temperature and humidity controls, security systems, sensors, and smart home devices mostly under the Honeywell Home brand umbrella. Its customer base includes contractors, original equipment manufacturers (OEMs), service providers, and both residential and commercial retail channels worldwide.
The firm has been executing consistently, as evidenced by its recent quarterly results. Resideo delivered a record net income of $156 million during the quarter, marking a 680% year-over-year increase. Its adjusted EBITDA reached a new high of $229 million, rising 21% compared to the prior year, while gross margins approached 30%. Both operating segments continued to expand margins, sustaining an ongoing positive trend beyond temporary cost reductions.
In light of these robust financials and operational progress, the decision by BeaconLight Capital to trim its Resideo stake should not be interpreted as a loss of confidence. Instead, it appears to be a prudent portfolio adjustment aimed at balancing exposure after substantial price gains. The company remains the fund’s largest holding, maintaining a sizable double-digit allocation, which aligns with a disciplined investment strategy emphasizing risk management and rebalancing.
BeaconLight’s portfolio focus on industries such as industrials, materials, and infrastructure positions Resideo well within its investment theme. Resideo’s asset-heavy, cash-generating business model centered on essential residential and safety products complements this concentration.
Additionally, management’s outlook anticipates up to $832 million in adjusted EBITDA for the full year, with plans underway for a business separation. This strategic maneuver points to ongoing evolution in Resideo’s corporate structure rather than short-term market timing concerns.
In summary, BeaconLight Capital’s partial divestiture of Resideo shares amid a strong earnings backdrop and rising stock price exemplifies measured portfolio stewardship rather than shifting investment convictions. Holding a significant stake while capturing gains balances growth potential with prudent risk exposure, consistent with long-term institutional asset management practices.