Curreen Capital's 'Crazy Cheap' Bet on Fortrea Pays Off as Fund Posts Strong 2025 Gains
Curreen Capital Partners, a boutique investment management firm, closed out a robust 2025 with a full-year return of 30.97%, according to its recently released fourth-quarter investor letter. The firm, which specializes in identifying deeply undervalued companies it calls "ugly ducklings," credited its disciplined approach for the strong performance.
In the letter, portfolio managers pointed to Fortrea Holdings Inc. (NASDAQ: FTRE), a global contract research organization (CRO), as a textbook case of their strategy. "Fortrea exemplifies what we look for: a good, well-managed business trading at what we consider a crazy cheap valuation," the letter stated. Despite not being among the most popular hedge fund holdings, Fortrea saw its shares gain 7.28% over the past year, with a market capitalization of approximately $1.55 billion.
The CRO sector, which provides outsourced clinical trial services to pharmaceutical and biotech companies, has faced headwinds from post-pandemic normalization and client budget pressures. However, analysts note that long-term industry drivers like aging populations and drug development complexity remain intact. Curreen's thesis appears to be that Fortrea's current price fails to reflect its solid operational foundation and potential in a stabilizing market.
Investor Commentary:
"This is value investing 101. Finding quality companies in out-of-favor sectors is where real alpha is generated. Curreen's focus on business fundamentals over momentum is refreshing." – David Chen, Portfolio Manager at Oakcrest Advisors.
"Calling a stock 'crazy cheap' is a marketing gimmick. The entire CRO space is struggling with margin compression and slower growth. This looks more like catching a falling knife than a shrewd investment." – Rebecca Vance, Independent Market Analyst.
"As a long-term biotech investor, I appreciate seeing funds recognize the essential role of CROs. Fortrea's stability is valuable, even if it's not a flashy AI play." – Dr. Arjun Mehta, Biotech Venture Partner.
While Curreen Capital remains bullish on its Fortrea position, the letter also acknowledged that certain AI stocks might present different risk-reward profiles in the short term. The firm's 2025 success underscores the ongoing debate between value-oriented and growth-focused investment strategies in a volatile market.
Disclosure: This analysis is based on publicly available investor letters and market data. It is not investment advice.