Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.9% | -19.8% | -19.8% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.9% | -19.8% | -19.8% |
McIntyre Partnerships declined 19.8% net in Q1 2026 versus a 5% gain for the Russell 2000 Value benchmark, primarily driven by a sharp pullback in life science tools stocks and specific issues at QDEL. The manager has made QDEL the fund's largest position at over 20% of capital, viewing the current $11 price as a once-in-five-to-ten-year opportunity. QDEL is a healthcare diagnostics company with a razor/razor blade model serving hospitals and labs under long-term contracts with 95% renewal rates. The manager believes five concurrent but unrelated issues have created a mispricing: COVID sales decline, ERP implementation problems, weak flu season, Chinese reimbursement changes, and LEX product launch costs. The core 75% of QDEL's business continues growing at 6% while trading at substantial discounts to peers. With projected $4 FCF per share in 2028 and comparable companies trading at 20x+ multiples, the manager targets $80 per share. Put options limit downside to under 20% of fund value.
QDEL represents a once-in-five-to-ten-year opportunity where multiple temporary issues have created significant mispricing in a stable, growing diagnostics business with high switching costs and recurring revenue model.
The manager expects QDEL's multiple temporary issues to resolve over the next two years, driving significant reweighting of shares. Key catalysts include China finalizing reimbursement rates, positive FCF generation in H2 2026, and potential relief rally in life science tools. The manager believes QDEL represents substantial value if the business returns to steady growth, with a target of $80 per share based on 20x multiple of projected $4 FCF per share in 2028.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 11 2026 | 2026 Q1 | CC, FTRE, ICLR, MDRX, QDEL, SEG, SHC, STHO, SWIM | Concentration, Diagnostics, healthcare, Life Sciences, Medical Devices, small cap, value | QDEL | McIntyre concentrated over 20% in QDEL at $11, viewing it as a once-in-a-decade opportunity. Five temporary issues mask a stable diagnostics business with 95% contract renewal rates and 6% core growth. Manager projects $4 FCF per share by 2028, implying $80 target versus current $11 price, with put protection limiting downside. |
| Feb 19 2026 | 2025 Q4 | MDRX, SAFE, SHC, STE | healthcare, liquidation, real estate, small cap, undervalued, value |
SHC STHO SEG MDRX |
McIntyre Partnerships underperformed in 2025 but manager believes portfolio is exceptionally positioned after rotating from winners to undervalued laggards. Key catalysts include tax benefits for SHC, capital returns from STHO liquidation, Meow Wolf opening for SEG, and MDRX relisting. Fund plans to reopen to investors in H2 2026. |
| Sep 3 2025 | 2025 Q2 | FTRE, HAYW, LESL, MDRX, SEG, SHC, STHO, SWIM | Concentration, healthcare, small caps, special situations, value, volatility |
SHC SEG SHC SEG |
McIntyre Partnerships recovered from -19% H1 underperformance to +4% YTD by August through concentrated small cap value investing. Key catalysts included Sotera Health volume recovery and Seaport Entertainment asset sale. The manager attributes H1 weakness to index fund flows and small cap special situations factor headwinds, positioning for continued outperformance as these factors reverse. |
| May 13 2025 | 2025 Q1 | BWA, FTRE, GTX, HAYW, LESL, MDRX, SEG, SHC, STE, STHO, SWIM | Concentration, Healthcare Software, small caps, special situations, value | MDRX | McIntyre Partnerships fell 17% in Q1 versus 8% for Russell 2000 Value as broad selling hit concentrated special situations portfolio. Largest holding SHC disappointed despite lower cyclical risk while MDRX was resized after failed deal. Manager maintains conviction in idiosyncratic ideas with strong catalysts, expecting fundamentals to drive recovery over time. |
| Feb 3 2025 | 2024 Q4 | CC, GTX, HAYW, LESL, MDRX, OSW, SAFE, SEG, SHC, SPHR, STHO, SWIM | Automotive, Concentration, Cyclical, Litigation, real estate, small cap, value |
SHC GTX STHO |
Small-cap value fund underperformed in 2024 due to declines in three concentrated positions but manager maintains conviction in core theses. New investments in pool construction market at cyclical lows offer significant recovery potential. Portfolio positioned defensively with market hedges given broad market valuation concerns while maintaining focus on less-followed opportunities with structural advantages. |
| Nov 20 2024 | 2024 Q3 | CC, GTX, HHH, LESL, MDRX, OSW, SEG, SHC, SPHR, STHO | Concentration, real estate, small caps, spinoffs, value | SEG | Concentrated small cap value fund delivered strong Q3 performance led by SHC's 40% rally on improving fundamentals. New position SEG represents classic spinoff opportunity trading below asset value with significant upside if Manhattan real estate turnaround succeeds. Portfolio remains concentrated with top five positions at 68% of assets targeting mispriced special situations. |
| Jul 31 2024 | 2024 Q2 | SHC, STE, UMG.AS, WMG | Concentration, healthcare, Legal Risk, small caps, Sterilization, value | SHC | Concentrated small-cap value fund underperformed in Q2 but maintains conviction in core holdings. Largest position SHC trades at 10x EBITDA versus peer at 15x, offering compelling value despite legal risks. Manager trimmed overvalued positions like UMG at 30x earnings, demonstrating discipline. Key catalysts include inventory destocking resolution and legal settlements. |
| May 31 2024 | 2024 Q1 | CC, GTX, KRO, MDRX, OSW, SHC, SPHR, TROX, UMG, WMG | Concentration, Cyclical, Opportunistic, small caps, value | CC | McIntyre Partnerships fell 4% in Q1 due to largest holding SHC's 30% decline from block trade issues, but demonstrated opportunistic value creation by rapidly scaling CC position during accounting crisis-driven selloff. The fund maintains concentrated exposure to cyclical recovery themes, particularly TiO2 chemicals, with 77% in top five positions and flexibility to capitalize on market dislocations. |
| Jan 24 2024 | 2023 Q4 | ALGN, FBIN, FOR, GTX, MBC, MSGE, OSW, SAFE, SHC, SPHR, STHO, TPHS, UMG.AS, WMG, ZWS | Concentration, Event Driven, Litigation, small caps, turnaround, value |
SHC GTX |
McIntyre delivered 38% net returns through concentrated value investing in litigation-discounted SHC and BEV-contrarian GTX. Portfolio benefits from baby with the bathwater purchases in record labels and entertainment assets during 2022 sentiment trough. Top five positions represent 80% of assets with asymmetric risk-reward profiles as temporary headwinds resolve and fundamental quality drives multiple expansion. |
| Oct 25 2023 | 2023 Q3 | GTX, MSGE, OSW, SHC, SPHR, STHO, UMG.AS, WMG | Buybacks, Concentration, Cruises, Entertainment, Music, small caps, value | OSW | McIntyre Partnerships' concentrated small-cap value strategy delivered 22% net YTD returns through Q3 2023, vastly outperforming benchmarks. The fund's largest holding OSW operates as a cruise spa quasi-monopoly with high-teens IRR potential from strong cash generation. Record labels and entertainment venue SPHR also contributed meaningfully. Manager maintains conviction while positioning for potential capital rotation opportunities. |
| Oct 8 2023 | 2023 Q2 | GTX, MSGE, SHC, SPHR, STE | Buybacks, Entertainment, GARP, healthcare, small caps, value | SHC | McIntyre delivered 36% H1 returns through concentrated small-cap value positions. SHC leads as largest holding with 40-70% upside potential post-legal settlement. SPHR benefits from viral Sphere marketing validating business model. GTX's 20% buyback creates reweighting catalyst. Manager rebuilt record labels after AI selloff, viewing displacement fears as overblown. Portfolio remains 96% long despite market caution. |
| Jan 5 2023 | 2023 Q1 | MSGE, OSW, SAFE, SHC, SPHR, STHO, WMG | Catalyst Driven, Entertainment, real estate, small cap, spinoffs, value |
STHO SPHR |
McIntyre delivered 28% net returns through concentrated catalyst-driven investing, with SHC litigation settlement and MSGE spinoff driving outperformance. The manager rotated from MSGE to SPHR post-spinoff, viewing the Sphere development as undervalued despite strong U2 ticket demand. Remains cautious on cyclicals while maintaining high conviction in defensive, catalyst-rich portfolio. |
| Jan 27 2023 | 2022 Q4 | MSGE, SHC, STE | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Life Science ToolsThe fund has significant exposure to life science tools companies which experienced a sharp pullback in Q1. The sector broadly declined amid fears that AI models will dramatically change drug development, though the manager believes these concerns are overblown for QDEL specifically. The manager expects potential recovery as AI fears prove unfounded. |
Diagnostics Medical Devices Healthcare Biotechnology Laboratory |
DiagnosticsQDEL is positioned as a healthcare diagnostics tools company with a razor/razor blade business model focused on routine blood testing and point-of-care respiratory testing. The manager views the current pricing as a once-in-five-to-ten-year opportunity despite multiple temporary headwinds affecting the business. |
Medical Testing Healthcare Laboratory Point of Care Blood Testing | |
ChinaChinese government reimbursement rate changes are negatively impacting QDEL's China revenues, which fell 15% in Q1 as distributors pulled back. The manager considers this a real negative and excludes the China segment from core 2027 EBITDA projections, modeling it as a $70MM EBITDA hit. |
Reimbursement Healthcare Policy Government Asia Revenue | |
AIThe life science tools sector declined amid fears that AI models will dramatically change drug development. However, the manager believes these concerns are overblown, stating that QDEL specifically has almost nothing to do with drug development and that AI fears proving unfounded could provide a relief rally catalyst. |
Artificial Intelligence Drug Development Technology Healthcare Innovation | |
| 2025 Q4 |
HealthcareSHC represents a stable, recession-proof sterilization business with predictable growth. The core Sterigenics segment posted 10% revenue growth in 2025, marking an inflection from previous years. Manager expects return to historical 10%+ EBITDA growth rates above Street estimates. |
Sterilization Medical Devices Healthcare Services |
Real EstateSTHO is a liquidating security making significant progress toward asset sales and capital returns. SEG owns valuable Manhattan real estate in the Seaport district with Meow Wolf as a transformational anchor tenant expected to drive traffic and rental income. |
Liquidation Manhattan Entertainment | |
ValueManager rotated capital from winners where value is fairly reflected to laggards where fundamentals are improving but share prices declined. Portfolio described as 'cranking a spring' with substantial opportunity despite modest returns. |
Rotation Mispriced Undervalued | |
| 2025 Q2 |
Small CapsThe fund focuses on small cap value and special situations, specifically targeting off-the-run situations in lesser-followed areas of the market. Small cap special situations significantly underperformed in H1 2025, with median decline of -15% among sub-$5B market cap companies that underwent spinoffs in the last three years. |
Value Special Situations Concentration Spinoffs Off-the-run |
ValueMcIntyre Partnerships is described as a small cap value fund that runs a significantly more concentrated portfolio than most investment funds. The manager emphasizes superior stock selection and concentration as key drivers of success, citing Buffett's philosophy that no one ever got rich off their eighth best idea. |
Concentration Stock Selection Undervaluation Fundamentals Long-term | |
| 2025 Q1 |
ValueThe fund focuses on concentrated special situations that are often complex, with a benchmark of Russell 2000 Value. The manager emphasizes idiosyncratic ideas with strong catalysts that should be less at the whims of macro forces over time. |
Special Situations Concentrated Catalysts Undervalued Complex |
Healthcare SoftwareMDRX represents mission-critical healthcare software with sticky revenue streams. The company should generate $0.50-$0.70 per share in adjusted FCF in a normal year, offering a ~30% FCF/EV yield on a stable business. |
Healthcare IT Software Mission Critical Sticky Revenue FCF Yield | |
| 2024 Q4 |
Building MaterialsPool market at cyclical lows similar to Great Financial Crisis with pool starts at 6% of single-family home starts versus historical 11% average. Pool construction highly correlated with residential construction and R&R spending which shows early signs of recovery. |
Pool Construction Residential R&R Building Products Cyclical Recovery Housing |
LitigationSHC facing mass tort litigation in California with market pricing in $2B liability for 29 plaintiffs, which manager believes significantly overestimates probable outcomes based on prior settlement patterns in Illinois and Georgia. |
Mass Tort Legal Risk Settlement Overreaction | |
Electric VehiclesBEV penetration slowing from 50% growth rates to 25% annually, creating opportunity in turbocharger manufacturer GTX which is investing heavily in zero emission vehicle technologies while maintaining strong position in traditional automotive. |
BEV Penetration Turbochargers ZEV Investment Auto Transition | |
LiquidationSTHO trading at significant discount to NAV with liquidation plan offering 33% IRR over four years as real estate assets including Asbury Park beachfront properties are sold and proceeds distributed to shareholders. |
NAV Discount Real Estate Asset Liquidation Special Situation | |
| 2024 Q3 |
SpinoffsManager discusses SEG as a bad bank spin from Howard Hughes Holdings, where troubled assets are spun off creating indiscriminate selling and bargain valuations. The spin dynamics created selling pressure from HHH shareholders who lacked mandate for smaller companies. |
Spinoffs Value Real Estate |
Commercial Real EstateExtensive analysis of SEG's Seaport development in Lower Manhattan, including construction costs, rental comparables, and turnaround potential. Manager estimates replacement costs and compares to current market pricing for Manhattan real estate assets. |
Real Estate Manhattan Development | |
| 2024 Q2 |
ValueManager focuses on buying companies at discounted valuations, exemplified by SHC trading at 10x 2025 EBITDA versus peer STE at 15x. Exited UMG position when it reached 30x earnings, stating unwillingness to underwrite multiple expansion beyond 50% premium to market. Portfolio concentrated in undervalued positions with clear catalysts. |
Valuation Multiples Discount Premium Undervalued |
Small CapsFund benchmarks against Russell 2000 Value and has benefited from recent sharp rally in small cap value stocks. Portfolio composition focuses on smaller companies with concentrated positions, with top five holdings representing 72% of assets in what appears to be a small-cap focused strategy. |
Russell 2000 Small Cap Concentration Rally Value | |
| 2024 Q1 |
Specialty ChemicalsThe fund is positioned for a cyclical recovery in the TiO2 market after a prolonged downcycle. CC's TiO2 segment EBITDA declined from $809MM in 2021 to $290MM in 2023, but peers are showing strong results with improving volumes and pricing. The manager estimates CC can earn $1.5B in 2025 EBITDA. |
TiO2 Cyclical Recovery EBITDA Pricing |
| 2023 Q4 |
Electric VehiclesManager discusses significant slowdown in battery electric vehicle growth and believes the stronger for longer tail of internal combustion engines and hybrid powertrains has materially increased in value. The slowdown in BEV is heading on a collision course with GTX's valuation and proper capital allocation. |
BEV Hybrid ICE Powertrains Decarbonization |
MediaRecord labels UMG and WMG were significant contributors to performance. Manager views these as high-quality businesses that were down due to prevailing negative market sentiment rather than long-term fundamental issues. The Las Vegas Sphere opened to broadly positive reviews. |
Record Labels Entertainment Sphere Content | |
Medical DevicesSHC is one of two scaled outsourced providers of medical device sterilization services with 100% retention rate and consistent 10% growth. Manager believes destocking at medical device manufacturers and GLP-1 fears have created temporary headwinds that will abate. |
Sterilization Medical Equipment Healthcare Services GLP1 | |
| 2023 Q3 |
CruisesOSW operates as a quasi-monopoly in cruise ship spa services with limited competition and modest cyclicality. The business has returned to profitability with ~$85MM EBITDA expected in 2023 and ~$100MM in 2024. Cruise demand has been improving throughout the year, helping OSW post its best quarter since COVID. |
Cruises Travel Monopoly Recovery |
MusicRecord label investments (UMG, WMG) saw strong results with share price appreciation. Worries around AI disruption have faded while WMG posted better results in new music. Both labels are benefitting from positive developments in artist-centric models and incremental price increases. |
Music Streaming AI Pricing | |
EntertainmentSPHR opened with U2 to sold-out crowds in late September with favorable reviews for both U2 and the original production Postcard From Earth. The venue is trending towards the higher end of expectations with sold-out residencies, strong demand for original content, and ramping advertising. |
Entertainment Venues Content Advertising | |
| 2023 Q2 |
EntertainmentMSGE completed its spin-off of SPHR (Sphere Entertainment). The Sphere has gone viral with its exosphere displays, which validates the innovative business model for selling naming rights and advertisements. Manager trimmed position but retains holding. |
Sphere Exosphere Viral Naming Rights Advertisements |
AIRecord labels fell significantly on fears that AI music would displace the labels. Manager finds this logic silly, believing people won't abandon favorite bands to listen to AI knockoffs. Used the dislocation to rebuild substantial position in record labels. |
Music Streaming Labels Displacement | |
Medical DevicesSHC is the fund's largest holding, serving as a sterilization provider to pharma and medical device manufacturers. Company has 100% renewal rate across top 10 customers, 25-year average relationships, and ~50% EBIT margins. Growth driven by medical procedures and device innovation. |
Sterilization Healthcare Procedures Innovation | |
BuybacksGTX bought back roughly half of the controlling PE fund's shares, reducing sharecount by ~20%. Manager views the buyback favorably and believes the share collapse could be a significant catalyst for reweighting. |
Share Reduction PE Exit Catalyst | |
| 2023 Q1 |
EntertainmentMSGE completed its spin-off of the MSG arena, with the new SPHR entity owning the Sphere development in Las Vegas. The Sphere's opening show with U2 sold out in days with tickets averaging close to $500, suggesting strong demand despite market skepticism about the project's viability. |
Sphere MSG U2 Las Vegas Venues |
CruisesOSW rallied 33% on faster than anticipated return to profitability and ongoing recovery in cruise travel. The manager believes the sector can improve further as capacity returns, even if overall consumer spending broadly pulls back, since cruise travel has not yet fully recovered from the pandemic. |
Cruise Recovery Capacity Travel | |
MusicThe manager reduced investment in record labels, particularly WMG, after shares rallied significantly despite only incremental news. While remaining bullish on the record labels' long-term prospects, the manager will consider resizing the investment if the recent selloff continues. |
Record Labels WMG Music Industry | |
Commercial Real EstateThe manager is keeping an exceptionally high bar for any new investment with cyclical end markets, particularly construction or commercial real estate. While identifying potential cyclical investments that could double in five years, the manager hopes they might fall 30-50% further if results worsen. |
CRE Cyclical Construction Real Estate |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 10, 2023 | Fund Letters | McIntyre Partnerships | SHC | Sotera Health Company | Health Care | Health Care Services | Bull | NASDAQ | defensive, GARP, growth, Healthcare services, Medical devices, Monopolistic, pharma, Sterilization | Login |
| May 11, 2026 | Fund Letters | McIntyre Partnerships | QDEL | QuidelOrtho Corporation | Medical Devices | Health Care Equipment & Supplies | Bull | NASDAQ | Concentrated Position, diagnostics, Healthcare Equipment, Hospital Contracts, Life Sciences Tools, Medical devices, Point-of-Care Testing, Razor Razorblade Model, turnaround, Value | Login |
| Feb 19, 2026 | Fund Letters | Chris McIntyre | SHC | Sotera Health Company | Health Care | Health Care Services | Bull | NASDAQ | duopoly, EBITDA, healthcare, litigation, Sterilization, Tax rate | Login |
| Feb 19, 2026 | Fund Letters | Chris McIntyre | STHO | Star Holdings | Real Estate | Real Estate Management & Development | Bull | NASDAQ | buybacks, Liquidation, NAV, Real Estate, spinoff | Login |
| Feb 19, 2026 | Fund Letters | Chris McIntyre | SEG | Seaport Entertainment Group | Real Estate | Diversified Real Estate Activities | Bull | New York Stock Exchange | Caprate, cash, Event-driven, Real Estate, Redevelopment | Login |
| Feb 19, 2026 | Fund Letters | Chris McIntyre | MDRX | Veradigm Inc. | Health Care | Health Care Technology | Bull | NASDAQ | Ehr, FCF, Relisting, SaaS, turnaround | Login |
| Sep 3, 2025 | Fund Letters | Chris McIntyre | SHC | Sotera Health Co. | Health Care | Health Care Services | Bull | New York Stock Exchange | compounding, Medtech, Re-rating, Sterilization, Volumes | Login |
| Sep 3, 2025 | Fund Letters | Chris McIntyre | SEG | Seaport Entertainment Group | Communication Services | Entertainment Facilities | Bull | New York Stock Exchange | cashflow, Catalyst, entertainment, realestate, turnaround | Login |
| Sep 3, 2025 | Fund Letters | McIntyre Partnerships | SHC | Sotera Health Company | Health Care | Health Care Services | Bull | NASDAQ | Bioprocessing, Healthcare services, Inventory Destocking, market leader, Medical Sterilization, Post-COVID Normalization, turnaround, Volume Recovery | Login |
| Sep 3, 2025 | Fund Letters | McIntyre Partnerships | SEG | Seaport Entertainment Group | Communication Services | Entertainment | Bull | NASDAQ | Asset Sale, cash generation, Entertainment Venues, FCF Generation, Meow Wolf, net cash, Operational Turnaround, Real Estate Monetization | Login |
| May 13, 2025 | Fund Letters | McIntyre Partnerships | MDRX | Veradigm | Health Care | Health Care Technology | Bull | NASDAQ | Delisted, Ehr, FCF yield, Financial Restatement, healthcare software, M&A Target, turnaround, Value | Login |
| Feb 3, 2025 | Fund Letters | McIntyre Partnerships | SHC | Sotera Health Company | Health Care | Health Care Services | Bull | NASDAQ | Customer Destocking, duopoly, Healthcare services, high margins, Mass Tort Litigation, Medical devices, Mission-Critical, Sterilization Services | Login |
| Feb 3, 2025 | Fund Letters | McIntyre Partnerships | GTX | Garrett Motion Inc. | Consumer Discretionary | Automotive Parts & Equipment | Bull | NASDAQ | Automotive Supplier, BEV Disruption, duopoly, high margins, R&D investment, Share Buybacks, Turbochargers, zero-emission vehicles | Login |
| Feb 3, 2025 | Fund Letters | McIntyre Partnerships | STHO | Star Holdings | Real Estate | Real Estate Management & Development | Bull | OTC | Asbury Park, Asset Convergence, Beachfront Real Estate, Illiquid Security, Liquidation Play, NAV discount, Rate Sensitive, REIT Holdings | Login |
| Nov 20, 2024 | Fund Letters | McIntyre Partnerships | SEG | Seaport Entertainment Group | Real Estate | Real Estate Development | Bull | NASDAQ | Asset-Based, entertainment, Las Vegas, Manhattan, real estate development, spinoff, Sum-of-parts, turnaround, Value | Login |
| Jul 31, 2024 | Fund Letters | McIntyre Partnerships | SHC | Sotera Health Company | Health Care | Health Care Services | Bull | NASDAQ | duopoly, Healthcare services, Inventory Destocking, Legal Overhang, multiple expansion, Sterilization, turnaround, Value | Login |
| May 16, 2024 | Fund Letters | McIntyre Partnerships | CC | Chemours Company | Materials | Specialty Chemicals | Bull | NYSE | Accounting Irregularities, Cyclical Recovery, EBITDA recovery, Management turnover, Peer Outperformance, specialty chemicals, TiO2, Titanium Dioxide, Value | Login |
| Oct 25, 2023 | Fund Letters | McIntyre Partnerships | OSW | OneSpaWorld Holdings | Consumer Discretionary | Leisure Products | Bull | NASDAQ | capital allocation, Cruise, defensive, FCF yield, Quasi-monopoly, Recession-Resilient, share repurchases, Spa Services | Login |
| May 1, 2023 | Fund Letters | McIntyre Partnerships | STHO | Star Holdings | Real Estate | Real Estate Management & Development | Bull | NASDAQ | ground leases, Liquidation, NAV discount, Orphaned Security, Real Estate, REIT, Special Situation, spinoff, Value, Waterfront Property | Login |
| May 1, 2023 | Fund Letters | McIntyre Partnerships | SPHR | Sphere Entertainment | Communication Services | Entertainment | Bull | NYSE | Asymmetric Risk, Entertainment Venue, execution risk, Las Vegas, Media Networks, premium pricing, Real Estate, Residency Shows, spinoff, Sum-of-parts | Login |
| Jan 24, 2024 | Fund Letters | McIntyre Partnerships | SHC | Sotera Health Company | Health Care | Health Care Services | Bull | NASDAQ | duopoly, Equity, Healthcare services, Litigation Overhang, Medical devices, multiple expansion, Sterilization, Value | Login |
| Jan 24, 2024 | Fund Letters | McIntyre Partnerships | GTX | Garrett Motion Inc. | Consumer Discretionary | Auto Parts & Equipment | Bull | NASDAQ | Asymmetric Risk, Auto parts, capital allocation, Electric Vehicles, Equity, Hybrid Powertrains, Turbocharging, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| QDEL | QDEL is now the fund's largest position, and we have accumulated a full position. To cut to the chase, I believe QDEL's current price is a once-in-five-to-ten-year opportunity. For the third time in ten years, I have decided to size a position at more than 20% of the fund's capital, though we have purchased put options which limit our total loss to under 20%. I do not make this decision lightly, and I lay out my thinking below. If I am correct, I believe we have the rare opportunity for substantially outsized gains with no realistic risk of permanent capital loss. While I am highly confident in my analysis, if I am wrong, our investment will result in a large yet survivable loss. QDEL is a healthcare diagnostics tools company focused on routine blood testing, primarily at hospitals and central labs, and point-of-care (POC) respiratory testing. I think QDEL can earn ~$4 in 2028 FCF/sh. with 2-3x net leverage. Comparable companies such as Siemens Healthineers, ABT, Roche, and DHR all trade >20x P/E. QDEL is presently trading $11. A 20x multiple would yield $80. |
| CC | In the winners column, CC, ICLR, and SEG contributed 100-500bps. CC experienced a significant rally, largely attributable to excitement around its cooling products being used in data centers. |
| ICLR | In the winners column, CC, ICLR, and SEG contributed 100-500bps. We also had a successful trade in ICLR around its accounting restatement. While I like ICLR's business and think its shares are attractively priced, I did not want to increase our exposure to healthcare, which accounts for over 50% of the fund's capital, so I exited the position after it partially rallied back. |
| SEG | In the winners column, CC, ICLR, and SEG contributed 100-500bps. SEG rallied modestly as its deal to sell 250 Water Street closed, which, along with the decision to close the Tin Building, has substantially reduced cash burn, restructured the balance sheet, and put SEG on a strong footing for success. |
| FTRE | In the losers column, FTRE, SHC, SWIM, and STHO lost 100-500bps. On the losing side, SHC and FTRE fell alongside other medical device and life science tool companies. |
| SHC | In the losers column, FTRE, SHC, SWIM, and STHO lost 100-500bps. On the losing side, SHC and FTRE fell alongside other medical device and life science tool companies. Our five largest positions are QDEL, STHO, SHC, SWIM, and MDRX, and account for roughly 92% of assets. |
| SWIM | In the losers column, FTRE, SHC, SWIM, and STHO lost 100-500bps. SWIM retrenched with other housing-related equities as the Iran war caused oil prices to surge, which dims the outlook for further rate cuts. Our five largest positions are QDEL, STHO, SHC, SWIM, and MDRX, and account for roughly 92% of assets. |
| STHO | In the losers column, FTRE, SHC, SWIM, and STHO lost 100-500bps. Finally, STHO fell modestly during the quarter for no particular reason. STHO is the second largest position in the fund. They recently received full repayment from a seller-financed JV and are now in a net cash position. STHO has now repurchased ~10% of the shares outstanding over the last 12 months, and I anticipate capital returns will accelerate now that the JV has been exited. Our five largest positions are QDEL, STHO, SHC, SWIM, and MDRX, and account for roughly 92% of assets. |
| MDRX | Our five largest positions are QDEL, STHO, SHC, SWIM, and MDRX, and account for roughly 92% of assets. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||