McIntyre Fund Sees QDEL Sale, SHC Legal Win, STHO Cash Return

McIntyre Partnerships, the hedge fund run by Chris McIntyre, returned roughly flat in the second quarter after a sharp reversal from Q1 losses. The fund's net long exposure stands at 90%, concentrated in five names: QDEL, SHC, STHO, MDRX, and SWIM. McIntyre attributed the portfolio's broad-based rally in Q2 to positive idiosyncratic events, including a reported sale of QDEL's point-of-care business and legal wins for SHC.

McIntyre sees the most opportunity in QDEL. The Financial Times reported that QDEL is in late-stage talks to sell its Point of Care division for about $1.5 billion, a multiple of roughly 10x EBITDA. The sale would undo the 2022 merger of Quidel and Ortho, McIntyre said. The remaining company would be levered at about 2.5x and consist of the legacy Ortho business, which has been a steady performer. McIntyre believes the stock can trade at 12x EBITDA, yielding a $100 share price. He called the setup a 'once-in-five-to-ten-year opportunity.'

SHC, the medical device company, also has catalysts. The company's Sterigenics segment returned to high-single-digit organic growth in Q1, following a destocking period. A Georgia judge threw out five lawsuits, with reasoning that suggests the remaining 450 cases are likely to be dismissed, McIntyre said. He estimates a worst-case $180 million liability, small relative to SHC's 2026 EBITDA of $640 million. The company hired a new CEO from Viant, while the former CEO stays on as executive chairman. The private equity owners sold their remaining shares after Q1 earnings, removing an overhang that McIntyre said had weighed on the stock. He sees SHC earning $1.30 in 2028, and a 25x P/E would roughly double the current share price.

STHO, the holding company with a stake in Safehold (SAFE), has rallied 14% this year. McIntyre said the fundamental picture is stronger. SAFE itself is up 20%, and based on that alone, STHO should have appreciated 36%. STHO is unwinding legacy real estate holdings. McIntyre estimates its net asset value at $24.50, a 160% premium to the stock price. SAFE sold a portfolio at a 4.1% cap rate, compared to its own implied cap rate of 5.3%. Applying that 4.1% cap rate would value SAFE at $37, versus its $16 trading price. Safehold, which trades under the ticker SAFE, carries an Alpha Score of 65 from AlphaScala, indicating a moderate risk profile. The stock page is available here. McIntyre expects STHO to begin returning capital in the fall, after the company reaches a net cash position.

McIntyre plans to reopen the fund in the first half of 2027, citing improved portfolio liquidity. The partnership has been closed since Q1 2025. Existing limited partners will get priority. The fund's five largest positions account for roughly 88% of assets. McIntyre said he retains high conviction in the portfolio despite the flat first half.