McIntyre Partnerships highlights Sotera Health litigation wins and leadership overhaul
McIntyre Partnerships’ Q2 investor letter outlines positive legal developments and executive changes at Sotera Health Company, while noting the removal of private equity selling pressure.
US investment firm McIntyre Partnerships reported a flat performance for the first half of 2026, recording a 0 per cent gross return and a 1 per cent net return. This result significantly underperformed the Russell 2000 Value Index, which returned 23 per cent during the same period. However, the firm’s portfolio experienced a sharp reversal in the second quarter, appreciating 23.0 per cent on a gross basis and 23.3 per cent on a net basis, outperforming the index’s 17.3 per cent gain.
In its second-quarter investor letter, the firm highlighted Sotera Health Company (SHC), a provider of sterilization solutions and lab testing services for the healthcare industry. McIntyre cited positive legal developments in Georgia, where a judge dismissed five lawsuits against the company. The firm noted that the reasoning behind the dismissal implies the remaining 450 cases are likely to be rejected as well.
McIntyre estimated that SHC’s current liability is sub-$50 million. Even in a worst-case scenario where appeals reverse the decision, the firm calculated a maximum liability of $180 million, based on a $400,000 settlement per case. This figure is modest compared to SHC’s estimated 2026 EBITDA of approximately $640 million.
The letter also detailed a leadership transition at SHC, with former CEO Petras moving to the role of Executive Chairman while Shader, formerly CEO of medical device services company Viant, was appointed as CEO. McIntyre stated that Petras remains on the board and intends to play an active role in ensuring a smooth transition.
Additionally, the firm pointed to the sale of remaining shares by former private equity owners as a critical development. McIntyre argued that the selling pressure from these owners, which had created a significant overhang on the stock, has now been removed. The firm estimates SHC can earn approximately $1.30 in 2028, implying a valuation of roughly 25 times earnings per share, which is double the current share price.
SHC closed at $18.86 per share on August 7, 2026, with a market capitalisation of $5.38 billion. The stock posted a one-month return of 5.04 per cent and a 52-week gain of 25.61 per cent. According to data from the end of the first quarter, 42 hedge fund portfolios held SHC, an increase from 41 in the previous quarter.
