Fidelity's Major Share Sale in Next Vision Shakes Israeli Market

Fidelity, a major global investment group, surprised the Israeli market by selling most of its holdings in Next Vision in an off-exchange transaction valued at 1.3 billion shekels. The sale has caused a sharp decline in the company's stock on the Tel Aviv Stock Exchange. A senior executive at a large foreign institutional body told Calcalist that Fidelity's move is unusual for a long-term investor, especially selling shares so soon after acquiring them. "This is a bad sign for Next Vision and perhaps for the entire industry," the executive stated, contrasting Fidelity's action with typical behavior of institutional investors like Blackstone and BlackRock, who are known for long-term commitments. The executive further noted that selling such a large block of shares is not characteristic of foreign institutional investors, unless forced by circumstances, unlike domestic institutions. However, the executive acknowledged that the fact that other foreign investors purchased a significant portion of the shares is a positive indicator for Next Vision.

Fidelity initially acquired its shares in Next Vision in two tranches in March and July 2025, reaching a 9.5% stake. The recent sale reduced its holding to approximately 4%. Fidelity invested about $280 million in the shares and sold about 60% of them for approximately $450 million (1.3 billion shekels). The total profit from the investment, including the remaining shares, is estimated at $150 million.

Sources close to the deal suggested the sale was due to procedural changes within a specific Fidelity fund, necessitating the divestment from several companies, including Next Vision. However, the senior institutional executive expressed skepticism about this explanation, calling it "a strange explanation for a strange deal" given the shares were sold all at once, not gradually. The executive also commented on Next Vision's management, suggesting they are overly focused on the stock price. While Next Vision has succeeded in its niche by providing precisely what customers needed, the executive argued the company needs to diversify its revenue streams through acquisitions, comparing its situation to discovering an oil well that requires further development.

Next Vision reported a second-quarter profit of $53.5 million on revenues of $88 million and updated its annual revenue forecast to $335 million. The company's chairman is Chen Golan.