# Did Security Benefit Just Miss Out on a 60% Gain?

Institutional fund Security Benefit Life Insurance bailed on FIGS (healthcare apparel brand) back in Q3, dumping 565,560 shares worth ~$3.2M at roughly $6/share. Seemed like a solid move at the time—locked in quick profits after a position that was 1.5% of their fund's assets.

Then the market said "lol, hold my beer." FIGS has since rallied to $9.59, up 103% over the past year. That's a missed 60% upside right there.

**The thing is:** Security Benefit's exit wasn't unreasonable. FIGS only grew sales 8% last quarter—highest in two years, but still sluggish for a young company. Current net margin is just 6%, well below peers like Lululemon at ~15%. Stock's trading around 20x forward earnings assuming they hit that margin eventually—defensible but not a screaming bargain.

**The wild card:** International sales are only 14% of revenue with <1% market share overseas. If FIGS cracks double-digit growth there, the valuation math flips. That's the X-factor Security Benefit might've underestimated.

**Bottom line:** Sometimes institutions sell winners too early. But sometimes they're just right about the timing—just happened to be wrong about the direction this time. What do you think: is FIGS overheated or finally finding its groove?