Curreen Capital Partners LP experienced a 14% decline in the first quarter of 2026. Despite this, the fund maintains confidence in its existing portfolio, citing attractive valuations and strong operational performance of its holdings. The firm emphasizes its consistent investment approach, focusing on undervalued businesses, including spinoffs, that meet specific criteria for upside potential and downside protection.
Q1 2026 Performance and Investment Philosophy
In the first quarter of 2026, Curreen Capital Partners LP saw its value decrease by 14%. This performance stands in contrast to the broader market, with the S&P 500 down 4.33% and the MSCI World (US Gross) down 3.51% over the same period. Despite this short-term setback, the fund's long-term performance remains robust, showing a 245.6% return since inception with an annualized return of 10.1%. This quarter's results underscore the fund's strategic perspective, prioritizing long-term value over transient market fluctuations. The fund's philosophy centers on identifying and holding attractively priced businesses with strong operational fundamentals, a strategy that often leads to periods where market prices diverge from intrinsic value.
The investment manager maintains that the core businesses within the portfolio continue to perform admirably, exhibiting sound operational health and trading at valuations considered very favorable. This confidence has led to a decision to retain all existing positions, as no new investment opportunities reviewed during the quarter presented a superior risk-reward profile. The firm’s ongoing commitment is to uncover spin-offs and other well-understood businesses that are trading significantly below their intrinsic value, thereby offering substantial upside potential while limiting downside exposure. This disciplined approach ensures that capital is allocated only to opportunities that truly enhance the portfolio's overall quality and potential returns.
Strategic Holdings and Future Outlook
Curreen Capital's portfolio includes several key positions, each selected for its strategic value and potential for future growth. Advance Auto Parts (AAP) is undergoing a significant turnaround, having stabilized its balance sheet and improved operations, making its current valuation appealing. Fortrea (FTRE), a recent spin-off from Labcorp, is focused on clinical trials and is also engaged in a business transformation, presenting an attractive upside-to-downside ratio. Frontdoor (FTDR), specializing in home service plans, consistently generates free cash flow, which is strategically used for organic growth, debt reduction, share repurchases, and complementary acquisitions. These diverse holdings reflect the fund's strategy of investing in companies with strong underlying businesses and clear catalysts for value creation.
Other notable holdings include GetBusy (GETB:GB), which provides online document exchange systems and, despite not yet generating profits due to growth investments, operates profitable and sustainable core businesses in the U.K. and U.S. Siemens Energy (SMEGF) benefits from a strong electrical power generation and transmission business, alongside a wind turbine segment undergoing a turnaround, poised to capitalize on increasing electricity demand, particularly from AI. Lastly, VF Corp (VFC) manages established apparel brands like The North Face and Vans, and has made strides in balance sheet improvement and management restructuring, positioning it for renewed growth. The fund's continued focus on such well-positioned companies, including spin-offs, highlights its commitment to long-term value creation and disciplined investment, even amidst market volatility.
