Just caught something interesting - Solas Capital picked up over 407k shares of Kyndryl back in late December. That's roughly $10.8M worth of the stock at the time. Not exactly tiny, but it didn't even crack their top 5 holdings, which tells you something about the fund's overall size.

The fund's been holding some solid tech names - FENC, EPSN, SNDA in the mix - so I get why Kyndryl caught their eye. It's IBM's old infrastructure business spun off, and it actually hit record highs early last year. Solas probably thought they were getting in at a decent spot after a pullback.

Turns out that timing wasn't great. By the time the position got disclosed in mid-February, the stock had already tanked hard - down 67% from its peak, underperforming the S&P by almost 80 percentage points. Then things got messier. The company delayed its 10-Q filing over accounting issues, their CFO and general counsel both bailed, and they started guiding lower. Longer sales cycles, data sovereignty headaches, ongoing friction with IBM - it all piled up.

Now the real question is what Solas did next. Did they hold? Sell? Double down? Their next 13-F filing should be interesting to watch. This is exactly why diversification matters - even solid fund managers can get caught holding the bag on individual positions.