REEx Inside Scoop: Alyeska Cuts USA Rare Earth (Nasdaq: USAR) Stake Below 5%

Highlights

• Alyeska reduced its USAR holdings by 5,280,456 shares, a 31.9% drop, as of June 30, 2026.
• The stake fell from 7.60% to 4.61%, crossing below the SEC's 5% Schedule 13G reporting threshold.
• Alyeska manages approximately $41.7 billion in assets and is known for long/short equity strategies.
• Dropping below 5% means Alyeska is no longer required to file ongoing Schedule 13G amendments unless ownership rises again.
• The filing provides no explanation for the reduction, leaving Alyeska's reasoning unknown.

Alyeska Investment Group (opens in a new tab), the Chicago-based hedge fund, reported beneficial ownership of 11,290,321 USA Rare Earth Inc. (Nasdaq: USAR) shares as of June 30, 2026—5,280,456 fewer than at March 31. Its reported stake fell from 7.60% to 4.61%, crossing below the Securities and Exchange Commission’s 5% disclosure threshold. One major investor has reduced its exposure while USA Rare Earth attempts an unusually ambitious mine-to-magnet buildout with considerable execution (including integration) risk. The position changed sharply. The filing does not explain why.

What Changed?

Alyeska’s previous amended Schedule 13G reported 16,570,777 shares. The August 14 amendment reported:

• 11,290,321 shares
• 4.61% ownership
• 5,280,456 fewer shares
• A 31.9% reduction in reported beneficial ownership

Alyeska Investment Group, Alyeska Fund GP, and Chief Executive Officer Anand Parekh (opens in a new tab) report shared authority over the same shares. The three figures are not separate positions and must not be added together. The filing establishes that Alyeska’s reported share count declined. It does not identify when or how the reduction occurred, so REEx cannot conclude that every share was sold in the open market. Growth in USA Rare Earth’s outstanding share count also magnified the percentage decline.

Who Is Alyeska?

Alyeska Investment Group (opens in a new tab) is a Chicago-based, Securities and Exchange Commission-registered investment adviser founded in 2008. Its March 2026 Form ADV reported approximately $41.7 billion in regulatory assets under management, 60 employees, and three pooled investment-vehicle clients. The firm is led by founder and Chief Executive Officer Anand Parekh and is associated with long/short equity investing.

REEx Reality Check

Dropping below 5% generally suspends Alyeska’s continuing Schedule 13G amendment requirement unless ownership again exceeds a reporting threshold. Its remaining position is still substantial—but future changes may become less visible.

Bottom Line: Alyeska materially reduced its reported USAR exposure. That is fact. Its reasoning remains unknown. See REEx pieces of late on USAR, the opportunities, and the considerable risks.

Sources: Securities and Exchange Commission Schedule 13G/A filings dated May 15 and August 14, 2026; Alyeska Form ADV, March 23, 2026.