Perimeter Solutions Surges 111% as Major Fund Recalibrates Substantial Position

Amid an extraordinary market rally, specialty chemicals firm Perimeter Solutions (NYSE: PRM) has attracted significant institutional attention, though recent fund moves reveal a nuanced investment strategy rather than outright enthusiasm loss.

The Strategic Rebalancing

According to SEC filings dated November 14, East Coast Asset Management—a Massachusetts-based investment fund—reduced its Perimeter Solutions holding by approximately 497,847 shares during the third quarter, translating to roughly $6.40 million in value reduction. Despite this trimming, the fund’s remaining position tells a compelling story: nearly 1.6 million shares valued at $35.24 million as of September 30.

What’s particularly telling is that Perimeter Solutions remains the fund’s second-largest holding, representing 11.04% of its 13F reportable assets. The reduction accounted for just 2.96% of the fund’s total $319.18 million in U.S. equity assets across 68 positions. This isn’t an exit strategy—it’s portfolio recalibration in the face of an exceptional stock run.

Market Performance and Valuation

The numbers speak volumes. Trading at $28.08 per share, Perimeter Solutions has delivered a breathtaking 111% return over the past twelve months, utterly dwarfing the S&P 500’s modest 15% gain. The company now commands a $4.15 billion market capitalization.

But underneath the stock price surge lies operational substance. Perimeter Solutions reported trailing twelve-month revenue of $636.34 million with net income of $78.03 million, demonstrating genuine profitability in a competitive sector.

Business Fundamentals Remain Solid

The specialty chemicals manufacturer supplies fire retardants, firefighting foams, and lubricant additives through recognized brands including PHOS-CHEK, FIRE-TROL, and SOLBERG. Its diversified revenue streams span Fire Safety and Oil Additives segments, serving federal agencies, state governments, and commercial clients across the United States, Germany, and international markets.

Most impressively, third-quarter results showed operating momentum: revenue climbed 9% year-over-year to $315.4 million, while adjusted EBITDA rose 9% to $186.3 million. The Fire Safety segment particularly impressed with 13% EBITDA growth. Year-to-date adjusted EBITDA stands up 20%, and quarterly adjusted earnings per share reached $0.82, up from $0.75 a year prior.

What This Fund Move Really Signals

The reduction should be interpreted through a disciplined risk management lens. After a stock has appreciated this dramatically, trimming a portion while maintaining a substantial position represents sophisticated portfolio discipline. East Coast Asset Management didn’t abandon conviction—it simply took profits while preserving meaningful exposure to the underlying business thesis.

For long-term investors monitoring this name, the takeaway is clear: even experienced fund managers occasionally harvest gains after outsized rallies. That’s not indecision. That’s mature investing.