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$10 Million Exit: Why a Fund Would Walk Away From CoreCivic Despite a $604 Million Quarter

Motley Fool - Thu Feb 12, 5:36PM CST

Key Points

  • Turiya Advisors exited a stake in CXW during the fourth quarter, selling 479,000 shares.

  • The quarter-end position value decreased by $9.75 million as a result of the exit.

  • The position previously represented 2.6% of AUM in the prior quarter.

Turiya Advisors Asia Ltd sold its entire position in CoreCivic(NYSE:CXW) during the fourth quarter, according to a February 11 SEC filing, with an estimated transaction value of $9.75 million.

What happened

According to an SEC filing dated February 11, Turiya Advisors Asia Ltd reported selling all 479,000 shares of CoreCivic in the fourth quarter. The estimated transaction value was $9.75 million.

What else to know

Top holdings after the filing:

  • NASDAQ:GOOGL: $225.77 million (34.6% of AUM)
  • NASDAQ:TSEM: $172.85 million (26.5% of AUM)
  • NYSE:CLF: $96.28 million (14.7% of AUM)
  • NYSE:GEO: $91.00 million (13.9% of AUM)
  • NYSE:PSTG: $67.01 million (10.3% of AUM)

As of February 11, shares of CoreCivic were priced at $18.50, up 2.5% over the past year and underperforming the S&P 500 by 11.8 percentage points.

Company overview

MetricValue
Price (as of market close February 11, 2026)$18.50
Market capitalization$1.98 billion
Revenue (TTM)$2.09 billion
Net income (TTM)$109.24 million

Company snapshot

  • CoreCivic, Inc. operates correctional, detention, and residential reentry facilities, and provides government real estate solutions across the United States.
  • The company generates revenue primarily through long-term contracts with government agencies for facility management, rehabilitation programs, and property leasing.
  • Its main customers are federal, state, and local government entities seeking corrections, detention, and reentry services.

CoreCivic, Inc. is a leading U.S. provider of partnership correctional and detention management services, with a diversified portfolio spanning safety, community reentry, and real estate segments. The company leverages its scale and experience to deliver secure facility operations and rehabilitation programs for government partners. Its integrated service offerings and long-term contracts support stable cash flows and position CoreCivic as a key player in the specialty REIT sector.

What this transaction means for investors

When a concentrated portfolio reallocates capital away from a government services operator that just posted $604.0 million in quarterly revenue and $26.5 million in fourth quarter net income, it likely signals positioning, not necessarily pessimism.

CoreCivic grew full-year 2025 revenue to $2.2 billion and net income to $116.5 million, with normalized funds from operations per diluted share of $2.05. Management expects 2026 net income between $147.5 million and $157.5 million and EBITDA as high as $445.0 million. That is not a business in retreat.

For a portfolio already heavily weighted toward cyclical and policy-sensitive names like Cleveland-Cliffs and GEO Group, trimming or exiting another corrections exposure may simply reduce thematic overlap or open up opportunities for targeted bets in other names. CoreCivic’s leverage of 2.8 times net debt to adjusted EBITDA and expanding credit facility provide flexibility, but the stock still carries headline and regulatory risk.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Pure Storage. The Motley Fool has a disclosure policy.

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