Investment fund Legacy Capital Wealth Partners, LLC reported a significant reduction in its holdings of apparel retailer Gap Inc. (NYSE: GAP) according to a Securities and Exchange Commission (SEC) filing submitted on November 13, 2025. The document reveals that in the third quarter of 2025, Legacy Capital sold 200,000 shares of Gap stock, decreasing its position from 582,356 shares previously held to 382,356 shares. This transaction resulted in a net reduction of roughly $4.32 million in the value of its Gap stake.
At the close of the third quarter, the remaining shares in Legacy Capital’s portfolio were valued at approximately $8.18 million. This reduction marks a considerable adjustment in the fund’s allocation towards Gap, which now constitutes only about 1.8% of its total assets under management (AUM), effectively placing the stock outside its top five holdings.
Legacy Capital’s portfolio continues to be heavily weighted toward other equities, with its largest positions including Walmart (NYSE: WMT) at $54.54 million, making up 11.9% of AUM; JB Hunt Transport Services, Inc. (NASDAQ: JBHT) at $16.02 million (3.5% of AUM); Tesla Inc. (NASDAQ: TSLA) at $12.84 million (2.8% of AUM); the Invesco QQQ Trust Series 1 (NASDAQ: RDVY) valued at $10.04 million (2.2% of AUM); and the iShares Core S&P 500 ETF (NYSEMKT: IVV) at $8.81 million (1.9% of AUM).
As of November 12, 2025, Gap’s stock price stood at $24.91 per share, reflecting a one-year total return of 17.33%. However, this performance trails the S&P 500 by 2.79 percentage points during the same period.
Company Profile and Financial Condition
Gap Inc. operates diverse apparel and personal care brands serving a wide demographic worldwide. Its portfolio includes the well-known Old Navy, Gap, Banana Republic, and Athleta brands. The company markets various product lines such as denim, t-shirts, activewear, eyewear, footwear, handbags, and fragrances.
Revenue streams for the company are derived from multiple channels including company-managed stores, franchised locations, e-commerce platforms, and third-party collaborations. This multi-channel strategy combines both traditional brick-and-mortar retail and digital commerce to reach consumers globally across North America, Asia, Europe, Latin America, the Middle East, and Africa.
Financially, Gap reported $15.29 billion in revenue over the trailing twelve months (TTM) and achieved a net income of $851 million within the same period. The company maintains a dividend yield of approximately 2.65%, offering income potential to shareholders alongside capital appreciation opportunities.
Investment Analysis
Legacy Capital Wealth Partners initially acquired a significant position in Gap during the second quarter of 2024, where the stock ranked as its third-largest holding and represented around 2.9% of total assets at that time. The subsequent sale of half this position suggests a reassessment of Gap’s attractiveness within the context of Legacy Capital’s broader portfolio.
While the specifics behind this partial divestment remain undisclosed—standard for such 13F filings—the lack of considerable stock price movement since the fund’s original purchase may imply some level of dissatisfaction or a strategic shift away from lower-performing assets. Gap’s low price-to-earnings (P/E) ratio near 11 might indicate that the market views the stock as undervalued, yet this valuation metric alone does not guarantee stock appreciation, as performance and growth prospects also weigh heavily on investment decisions.
Market data shows that Gap’s revenue growth has been limited to low single digits, with profitability figures remaining largely flat. These factors arguably reduce the likelihood of the company delivering returns that exceed broader market indices, possibly diminishing its appeal for funds seeking robust growth or dynamic performance in their equity selections.
These dynamics might explain why an investment firm holding hundreds of different equities would choose to scale back its commitment to Gap. Despite the brand’s global reach and diversified product offerings, the business fundamentals and recent stock performance seem to have constrained compelling investment upside in the near term.
Summary of Key Financial Metrics
| Metric | Value |
|---|---|
| Revenue (TTM) | $15.29 billion |
| Net Income (TTM) | $851 million |
| Dividend Yield | 2.65% |
| Stock Price (2025-11-12 close) | $24.91 |
Conclusion
Legacy Capital Wealth Partners’ decision to reduce its Gap holding by nearly $4.5 million underscores the challenges facing the apparel retailer in attracting sustained investor enthusiasm. The combination of modest financial growth, limited stock appreciation relative to market benchmarks, and a portfolio strategy favoring more dynamic or larger positions seems to have influenced the fund’s adjustment.
While Gap remains a notable player in global apparel with a broad brand lineup and extensive distribution reach, current performance trends may present hurdles to substantial market-beating returns. Consequently, some institutional investors like Legacy Capital appear to be reevaluating their exposure, reflecting a cautious outlook toward the company’s near-term equity prospects.