Fund Opens $7.8 Million Position in Farmer Mac Despite 20% S&P Underperformance

On February 13, 2026, First Sabrepoint Capital Management LP disclosed a new position in Federal Agricultural Mortgage Corporation (AGM 2.89%), acquiring 44,500 shares with an estimated trade value of $7.81 million.

What happened

According to a SEC filing published February 13, 2026, First Sabrepoint Capital Management established a new position in Federal Agricultural Mortgage Corporation by acquiring 44,500 shares during the fourth quarter of 2025. The estimated transaction value was $7.81 million.

What else to know

• This was a new position for the fund, now representing 3.01% of its 13F reportable assets under management.
• Top holdings after the filing:
  • NYSE: TPB: $43.36 million (17.8% of AUM)
  • NASDAQ: FCFS: $31.08 million (12.8% of AUM)
  • NASDAQ: LAUR: $16.84 million (6.9% of AUM)
  • NASDAQ: CVCO: $15.95 million (6.6% of AUM)
  • NYSE: ATGE: $13.97 million (5.7% of AUM)
• As of February 12, 2026, AGM shares were priced at $179.14, down 7.85% over the past year and underperforming the S&P 500 by 20.75 percentage points.

Company overview

Company snapshot

• Federal Agricultural Mortgage Corporation offers a secondary market for agricultural, rural utility, and USDA-guaranteed loans, including purchasing, securitizing, and guaranteeing loan-backed securities.
• The firm generates revenue primarily through interest income, guarantee fees, and securitization activities across Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit segments.
• It serves agricultural lenders, rural utility cooperatives, and financial institutions seeking liquidity and risk transfer solutions for rural and agricultural lending portfolios.

Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for agricultural and rural infrastructure loans in the United States.

What this transaction means for investors

Farmer Mac has lagged the S&P 500 by more than 20 percentage points over the past year, yet the underlying business keeps expanding. In the third quarter, outstanding business volume topped $31.1 billion, net interest income rose 13% year over year to $98.5 million, and core earnings hit a record $49.6 million, or $4.52 per diluted share. Net effective spread reached a record $97.8 million, underscoring pricing power even in a volatile rate backdrop.

Within the portfolio, Farmer Mac’s secondary market model, spanning farm and ranch, rural utilities, broadband, and renewable energy, adds a kind of credit exposure tied to essential infrastructure rather than consumer spending.

Meanwhile, the balance sheet remains sturdy, with $1.7 billion in core capital and a Tier 1 ratio of 13.9% demand and net spreads stay resilient. If they do, today’s relative underperformance could look more like an entry point than a warning sign.