McIntyre Partnerships bets on QuidelOrtho spin-off as fund posts flat H1 2026 returns
McIntyre Partnerships’ Q2 letter outlines a strategy to exit volatile diagnostic markets, expecting QuidelOrtho to revalue towards 11-15x EV/EBITDA multiples following the proposed divestment.
US investment firm McIntyre Partnerships reported flat performance for the first half of 2026 in its Q2 investor letter, contrasting sharply with a 23 per cent gain in the Russell 2000 Value Index. The fund delivered a 0 per cent gross return and a -1 per cent net return for the period, marking a significant underperformance against the benchmark. However, the second quarter saw a reversal of the first quarter’s results, with the portfolio appreciating 23.0 per cent gross and 23.3 per cent net, outperforming the index’s 17.3 per cent return during that specific period.
Despite the mixed half-year results, the firm remains confident in its concentrated portfolio, identifying QuidelOrtho Corporation (QDEL) as a key holding. The investment thesis centres on reports that QDEL intends to sell its Point of Care (POC) division for approximately $1.5 billion to reduce debt. This transaction would effectively reverse the 2022 merger between Quidel and Ortho, leaving the legacy Ortho business as the remaining entity.
McIntyre Partnerships views the legacy Ortho business as a steady performer, distinct from the legacy Quidel business which has driven repeated missed estimates over the past three years. The firm expects that once Chinese regulatory news is finalised in the coming months, the legacy Ortho business will return to its historical, consistent high single-digit EBITDA growth. The firm also posits that the second quarter marks a low point for cash flow generation, a frequent concern for bears.
As QDEL delevers and exits the volatile flu and COVID testing markets, McIntyre expects the company to reweight towards peers in the 11-15x EV/EBITDA range. The firm estimates that a 12x multiple on RemainCo 2029 EBITDA yields approximately $100 per share. If this revaluation does not occur, the firm suggests the company may be sold to private equity.
Market data indicates that QuidelOrtho Corporation closed at $12.28 per share on August 7, 2026, with a market capitalisation of $837.72 million. Shares have lost 46.55 per cent over the past 52 weeks. At the end of the first quarter, 24 hedge fund portfolios held QuidelOrtho, a decrease from 26 in the previous quarter, reflecting a cautious sentiment among broader institutional investors despite McIntyre’s bullish stance.
