This Fund Just Disclosed a $29 Million Sale of a Beauty Stock Up 20% This Past Year

On February 17, 2026, Portolan Capital Management disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it sold 295,203 shares of e.l.f. Beauty (ELF 0.91%) in the fourth quarter, an estimated $29.06 million trade based on quarterly average pricing.

What happened

According to an SEC filing dated February 17, 2026, Portolan Capital Management reduced its position in e.l.f. Beauty by 295,203 shares during the fourth quarter. The estimated value of the shares sold was $29.06 million, based on the average share price for the quarter. The quarter-end value of the position dropped by $49.96 million, a figure that includes both the impact of the share sale and changes in the stock price.

What else to know

• Following the reduction, e.l.f. Beauty represents 0.8% of Portolan Capital’s 13F assets.
• Top five holdings after the filing:
  • NASDAQ:TTMI: $79.12 million (4.2% of AUM)
  • NYSE:MOD: $71.55 million (3.8% of AUM)
  • NASDAQ:CSTL: $67.28 million (3.6% of AUM)
  • NYSE:CLS: $50.93 million (2.7% of AUM)
  • NASDAQ:AKAM: $45.75 million (2.5% of AUM)
• As of February 17, 2026, shares of e.l.f. Beauty were priced at $87.28, up 21% over the past year and outperforming the S&P 500.

Company overview

Company snapshot

• e.l.f. offers cosmetic and skin care products under brands including e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare, with a portfolio spanning eye, lip, face, and skin care categories.
• The company generates revenue through sales to national and international retailers, direct-to-consumer e-commerce channels, and international distributors, leveraging a multi-channel distribution model.
• Headquartered in Oakland, California, it operates within the consumer defensive sector.

The company has demonstrated strong financial performance, supported by robust revenue growth and expanding profitability. e.l.f. Beauty, Inc. offers products through national and international retailers, direct-to-consumer e-commerce, and international distributors, positioning it within the consumer defensive sector.

What this transaction means for investors

Trimming a winner often says more about portfolio construction than business fundamentals. e.l.f. Beauty remains one of the fastest-growing brands in cosmetics, and its latest results reinforced that narrative. Net sales jumped 38% year over year in the most recent quarter to about $489.5 million, while adjusted EBITDA surged 79% to roughly $123 million as the company continued gaining share in both retail and e commerce channels.

That growth helps explain why the stock has climbed more than 20% over the past year, even as many consumer companies struggled with slowing demand. e.l.f. has leaned heavily into viral marketing, value pricing, and rapid product launches, a combination that has consistently resonated with younger shoppers.

Within a portfolio dominated by industrial technology, infrastructure components, and semiconductor supply chain names, a consumer beauty brand has always been somewhat of an outlier. Reducing the position to less than 1% suggests the fund may simply be recycling gains into sectors where it has deeper conviction.