This Fund Exited an $8 Million Cinemark Position Amid 20% Stock Drop Last Quarter

By Jonathan Ponciano – Mar 5, 2026 at 12:58PM ESTKey PointsMarathon Asset Management exited 300,000 shares of Cinemark Holdings in the fourth quarter.The quarter-end position value decreased by $8.41 million, reflecting the share sale.The position was previously 11.2% of the fund's AUM as of the prior quarter.On February 17, 2026, Marathon Asset Management disclosed in an SEC filing that it sold out its entire Cinemark Holdings (CNK 0.63%) position, an estimated $8.41 million trade based on last-disclosed position values.What happenedMarathon Asset Management reported in a recent SEC filing dated February 17, 2026, that it fully liquidated its Cinemark Holdings stake during the fourth quarter of 2025. The quarter-end value of the Cinemark position decreased by $8.41 million, reflecting the share sale.What else to knowMarathon Asset Management’s Cinemark stake previously represented 11.2% of AUM in the prior quarter.Top holdings after this filing:NYSEMKT:SPY: $24.22 million (38.9% of AUM)NYSE:EAF: $20.09 million (32.2% of AUM)NYSEMKT:JHHY: $3.24 million (5.2% of AUM)NYSE:UNH: $2.87 million (4.6% of AUM)NASDAQ:PYPL: $2.63 million (4.2% of AUM)As of February 17, 2026, shares of Cinemark Holdings were priced at $25.36, down 22.4% over the past year.Company overviewMetricValueRevenue (TTM)$3.1 billionNet Income (TTM)$136.6 millionDividend Yield1.30%Price (as of market close 2/17/26)$25.36Company snapshotCinemark Holdings operates multiplex movie theatres, generating revenue primarily from box office ticket sales, concessions, and on-screen advertising.Its business model centers on maximizing attendance and per-patron spend through a broad film slate, premium amenities, and ancillary revenue streams.The firm serves moviegoers in the United States and Latin America, targeting families, young adults, and entertainment-seeking consumers.Cinemark Holdings together with its subsidiaries, engages in the motion picture exhibition business. The company was founded in 1984 and is headquartered in Plano, Texas. Cinemark leverages its extensive theatre network and premium offerings to drive attendance and capture a broad customer base. Strategic focus on operational efficiency and diversified revenue streams supports its competitive positioning within the global entertainment industry.What this transaction means for investorsThis move highlights the challenge of investing in businesses that depend heavily on consumer behavior and unpredictable content cycles. Movie theater operators like Cinemark can deliver strong cash flow when the film slate hits, but the ride for shareholders is rarely smooth.Cinemark’s latest results showed a business that is stabilizing after the pandemic era, even if earnings remain uneven from quarter to quarter. The company generated more than $3.1 billion in revenue during 2025, its highest annual total since theaters reopened, while producing about $578 million in adjusted EBITDA and $141 million in net income.Those numbers demonstrate that theatrical exhibition is still a viable business, supported by blockbuster releases, premium viewing formats, and high-margin concession sales. Cinemark served roughly 193 million moviegoers in 2025 and generated a record $1.2 billion in concession revenue.Still, the stock tells a different story. Shares plunged nearly 20% during the fourth quarter before rebounding sharply this year, underscoring how sentiment around theatrical releases and streaming competition can swing quickly. Within a portfolio largely centered on broad market exposure and industrial companies, a highly cyclical theater operator seemed like an outlier, and during tough times for the stock, conviction might be better focused elsewhere.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedCinemarkNYSE: CNK$28.43(-0.63%)-$0.18*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.