Rivermont Capital Management, based in New York City, sold 205,939 shares of Sensient Technologies Corporation, reducing its stake by $20.65 million in the third quarter. The fund reported holding 76,627 SXT shares valued at $7.19 million as of September 30. Top holdings post-filing included NASDAQ:STX, NYSE:FERG, NASDAQ:WTW, NYSE:CLH, NASDAQ:WDC.

Sensient Technologies Corporation, a leading global supplier of specialty ingredients, saw its shares priced at $96.11 as of Friday, up 32% over the past year, outperforming the S&P 500. The company develops and markets specialty ingredients for various industries and operates through three segments—Flavors & Extracts Group, Color Group, and Asia Pacific Group.

Despite Sensient’s strong third-quarter performance, Rivermont Capital Management trimmed its position, reflecting a rebalancing decision after the stock’s 32% climb over the past year. This move was not a bearish call on fundamentals, as the company continues to generate reliable cash flow and maintain pricing power in natural colors. Rivermont’s 13F reportable AUM showed a decrease in its SXT position.

Rivermont Capital Management’s sale of Sensient shares may seem counterintuitive but reflects a careful portfolio management strategy. While Sensient has been performing well, a concentrated fund must manage risk, especially in a steady-growth business. Rivermont’s decision to trim its stake was a valuation-driven move, not a lack of confidence in Sensient’s fundamentals.

Read more at Yahoo Finance: Why One Investor Took $20 Million in Sensient Stock Off the Table Amid a 32% Rally