General Dynamics’ largest shareholder, a family office that first acquired shares in the massive US defense contractor in 1959, has slashed its stake by nearly $1 billion and was responsible for 9.6% of all General Dynamics stock that traded during the month of September.

Those sales have cut its stake in the $89 billion military equipment provider by approximately 10% since August 26.

Manager of the Henry Crown family fortune, Longview Asset Management, sold roughly one out of every 10 General Dynamics shares that traded last month: 2,638,137 shares of September’s 27,591,000 in total volume.

Longview’s filings with the SEC show the fund dropping its stake from 27,096,788 shares of GD, General Dynamics’ NYSE-listed common stock, as of August 26, to 24,388,917 by October 1.

The timing has been brutal. General Dynamics has declined 13% since August 26, making the selling only more conspicuous, especially when broad indices like the S&P 500 have actually rallied over the same time period.

Longview disclosed its sale in advance, although the selling obviously had an effect. Specifically, an August 28 filing notified investors of its intention to conduct open-market sales of up to 3,387,098 shares, i.e. up to 12.5% of its position and approximately $1.3 billion at the time.

In 25 separate sales between September 1 and October 1, totaling 2,707,871 shares for gross proceeds of about $954 million, Longview has liquidated a substantial portion of its General Dynamics shares.

The selling does not have a particularly obvious reason, and a spokesperson for Longview simply explained the sale as general portfolio diversification.

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