Just saw that Portolan Capital disclosed they sold off a chunk of e.l.f. Beauty shares back in Q4 - like $29 million worth. Pretty interesting move considering the stock's been crushing it, up over 20% in the past year. The filing showed they cut their position pretty significantly, which dropped the holding to less than 1% of their portfolio.

What caught my eye is that even though they're trimming the position, e.l.f.'s fundamentals look solid. Latest quarter showed net sales jumping 38% year-over-year to around $489.5 million, and adjusted EBITDA surged 79%. The company's clearly winning with younger shoppers through viral marketing and aggressive product launches.

The move probably says more about portfolio construction than anything wrong with e.l.f. itself. Portolan seems to be rotating gains out of consumer names and back into their core industrial tech and semiconductor plays. Still, it's a reminder that even winning stocks get trimmed when they stop fitting the fund's thesis. The stock was trading around $87 when they disclosed the sale.