McIntyre Partnerships, a specialized fund concentrating on small and mid-cap value investments, has achieved a 3% net return for the year to date as of November's close. The firm's strategy revolves around identifying high-quality companies, particularly those involved in unique situations, where its focused approach can yield significant returns. The fund maintains a concentrated portfolio, typically holding five to ten thoroughly vetted investments, aiming to optimize risk-adjusted returns across various economic cycles.
During the third quarter of 2025, the fund's gross returns were approximately 1%, with net returns hovering around 0% for the year. This performance contrasts with its benchmark, the Russell 2000 Value Index, which saw an increase of about 9% over the same period. Since its inception, McIntyre Partnerships has delivered a gross annual return of approximately 17% and a net annual return of around 12%, significantly outpacing the benchmark's 7% annual return. Noteworthy contributors to recent gains include SHC, which boosted performance by over 500 basis points, alongside GTX and FTRE, each contributing between 100 and 500 basis points. Conversely, positions in LESL and STHO, along with market hedges, recorded losses within the 100-500 basis point range.
A major development in the fund's portfolio is the substantial accumulation of shares in a company referred to as "Stock A." This investment has rapidly become the fund's largest holding. Management views "Stock A" as a rare investment opportunity with the potential for exponential growth over the coming years, coupled with limited downside risk. Despite its current volatility, the fund has expressed confidence in the long-term prospects of "Stock A." Due to strategic considerations and the potential for increased activity in this stock, detailed information about "Stock A" is being withheld from public disclosure. However, existing limited partners have the option to contact management directly for more comprehensive insights.
At the close of the month, the fund's overall exposure comprised 110% long positions and 10% short positions, resulting in a net exposure of 100%. After accounting for options hedges, the net long position stood at approximately 96%. The top five holdings—SHC, STHO, SEG, MDRX, and SWIM—collectively represent about 72% of the fund's total assets. Following the quarter's end, "Stock A" emerged as the single largest holding, reflecting its strategic importance within the portfolio. This concentrated approach underscores the fund's conviction in its carefully selected investments.
Looking ahead, McIntyre Partnerships is currently not accepting new outside investors, with plans to potentially reopen to external capital in 2026. In an initiative designed to offer additional investment avenues, the fund is also launching a co-investment vehicle specifically dedicated to "Stock A." This vehicle is open for participation to existing limited partners, with a possibility of limited availability for a select number of new outside investors. These measures reflect the fund's commitment to maximizing value for its partners while managing its growth and strategic focus.
McIntyre Partnerships maintains a disciplined investment philosophy, prioritizing deep research and a focused portfolio to achieve superior long-term returns. The strategic emphasis on "Stock A" highlights the fund's proactive approach to identifying and capitalizing on unique market opportunities, reinforcing its commitment to value creation for its investors.
