Helix Partners Management LP has liquidated its entire stake in SLM Corporation, selling 200,000 shares for approximately $5.54 million during the fourth quarter. The divestment occurs as Sallie Mae's stock has underperformed significantly, declining 14.6% over the past 12 months compared to a 13% gain in the S&P 500, representing a 27.5 percentage point gap in relative performance.
The fund's exit coincides with emerging credit challenges at the student loan servicer. SLM reported loan delinquencies rising to 4.0% and provided guidance indicating increased net charge-offs anticipated for 2026, suggesting a normalization of credit conditions following the extended federal student loan payment moratorium. These metrics contrast with the company's otherwise solid operational performance, which included $3.46 in GAAP diluted earnings per share in recent results.
Despite these headwinds, Sallie Mae's board authorized a $500 million share repurchase program, indicating management confidence in the company's long-term value. However, rising credit stress and elevated delinquency rates may limit stock appreciation near term as investors assess the trajectory of loan performance in a higher-rate environment.