Curreen Capital: Fortrea (FTRE) is an Example of Our “Crazy Cheap” Strategy

Investment management company Curreen Capital released its fourth-quarter 2025 Investor letter. A copy of the letter can be downloaded here. Curreen Capital Partners reported robust results in 2025, retuning 10.5% in Q4 and 30.97% for the full year. The firm focuses on investing in “ugly ducklings”, i.e., companies that are good, well-managed, and trading at an attractive price. The firm was consistent with its investment plan, and the “ugly duckling” holdings performed well and exhibited solid results. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Curreen Capital highlighted Fortrea Holdings Inc. (NASDAQ:FTRE). Fortrea Holdings Inc. (NASDAQ:FTRE) is a contract research organization that serves pharmaceutical, biotechnology, and medical device customers. The one-month return of Fortrea Holdings Inc. (NASDAQ:FTRE) was 1.14%, and its shares gained 7.28% of their value over the last 52 weeks. On January 30, 2026, Fortrea Holdings Inc. (NASDAQ:FTRE) stock closed at $16.81 per share, with a market capitalization of $1.553 billion.

Curreen Capital stated the following regarding Fortrea Holdings Inc. (NASDAQ:FTRE) in its fourth quarter 2025 investor letter:

“Curreen Capital’s performance over the year was primarily driven by three positions: Fortrea Holdings Inc. (NASDAQ:FTRE), Siemens Energy, and GetBusy. Fortrea is an example of our “Crazy Cheap” strategy: buying excellent businesses priced as if their current struggles will last forever. These are ugly ducklings that are especially unpopular, and their stock prices have often fallen hard for months. I get very interested when a stock falls below my downside valuation, and as it falls further—specifically, trading at a discount of 33% or more to my downside valuation—I classify the opportunity as “Crazy Cheap”.

Fortrea faced headwinds, with weak financial results, the loss of a star CEO, and swirling fears about changing US health policy. “Crazy Cheap” stocks like Fortrea are often going through a painful period, but their low price creates an extremely attractive upside-to-downside. There is still downside risk, but it is dwarfed by the probability and magnitude of the upside. Overall, buying good businesses at “Crazy Cheap” prices has worked well for us.”

Fortrea Holdings Inc. (NASDAQ:FTRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 37 hedge fund portfolios held Fortrea Holdings Inc. (NASDAQ:FTRE) at the end of the third quarter, compared to 38 in the previous quarter.While we acknowledge the risk and potential of Fortrea Holdings Inc. (NASDAQ:FTRE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Fortrea Holdings Inc. (NASDAQ:FTRE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Fortrea Holdings Inc. (NASDAQ:FTRE) and shared the list of best young stocks to buy and hold for 3 years. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.