Robocap Exits Entire NICE Stake Amid AI Pivot and Prolonged Underperformance
In a significant portfolio adjustment, Robocap Asset Management Ltd. has completely exited its longstanding investment in NICE Ltd., according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The London-based fund sold 34,940 shares in the fourth quarter of 2025, a transaction valued at approximately $5.06 million based on the period's average share price.
The move eliminates what was once a 3.22% allocation within Robocap's U.S. equity assets, reducing its reported exposure by 4.5%. The sale comes as NICE, a provider of AI-driven cloud platforms for customer experience and compliance, grapples with a stark performance gap. The company's shares, trading around $106.41 as of late January 2026, have plummeted 35.5% over the past year, dramatically underperforming the S&P 500 by nearly 50 percentage points.
Analysts point to a deeper, multi-year trend as the likely catalyst for Robocap's exit. Over a five-year horizon, NICE has delivered a total return of -60%, starkly contrasting with the S&P 500's 98% gain. This decline coincides with fundamental pressures on NICE's core business model. The rise of generative AI and large language models presents both a disruption and an imperative, challenging traditional enterprise software suites. In response, NICE management has committed to an "AI-first" strategic overhaul, warning investors of potential margin compression during the transition.
"Robocap's exit is a sobering vote of no confidence," said Michael Thorne, a portfolio manager at Veritas Capital. "While NICE's pivot to AI is necessary, the execution risk is high. They're playing catch-up in a field where native AI startups and cloud hyperscalers are setting the pace. The margin guidance suggests this turnaround won't be cheap or quick."
Offering a more critical take, Sarah Chen, founder of the tech-focused hedge fund Apex Insight, was blunt: "This isn't just a strategic shift; it's a fight for survival. Selling off a position after a -60% return is closing the barn door after the horse has bolted. It begs the question: what took Robocap so long? NICE's legacy products are becoming obsolete, and their AI story feels reactive, not visionary. Investors should see this filing as a red flag, not a buying opportunity."
Conversely, David Reeves, an independent equity research analyst, urged perspective. "The sell-off is severe, and the strategic challenges are real. However, NICE still possesses a deep enterprise client base and recurring revenue streams. If they can successfully integrate AI to enhance their existing compliance and CX suites, there could be value here for patient investors. Robocap's sale might simply reflect their specific fund mandate or risk tolerance."
As of December 31, 2025, Robocap reported $112 million in total 13F assets across 25 holdings. The firm's representatives declined to comment on the specific rationale behind the NICE disposal.