Upslope Capital Management, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Upslope aims to provide attractive, equity-like returns while reducing market risk and keeping low correlation with traditional equity strategies. The fourth quarter marked a strong end to an exceptional year for the firm. The Fund delivered strong results with reduced downside risk. The Fund returned +2.0% (net) in Q4 compared to +1.6% for both the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index. For the year 2025, the Fund returned +14.8% compared to +7.2% and +10.1% returns for the indexes, respectively. The firm observed that markets are increasingly dynamic, and most investment decisions are driven by aggressive, thematic, and very short-term-focused strategies. As a closing note, the letter states that identifying investment opportunities is straightforward, but returns remain uncertain given the current economic landscape. In addition, you can check the Fund’s top five holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Upslope Capital Management highlighted stocks such as Henry Schein, Inc. (NASDAQ:HSIC). Henry Schein, Inc. (NASDAQ:HSIC), a distributor of dental products and services, has recently been added to the portfolio. On January 16, 2026, Henry Schein, Inc. (NASDAQ:HSIC) stock closed at $79.98 per share. One-month return of Henry Schein, Inc. (NASDAQ:HSIC) was 3.09%, and its shares gained 9.23% of their value over the last 52 weeks. Henry Schein, Inc. (NASDAQ:HSIC) has a market capitalization of $9.699 billion.
Upslope Capital Management stated the following regarding Henry Schein, Inc. (NASDAQ:HSIC) in its fourth quarter 2025 investor letter:
“Henry Schein, Inc. (NASDAQ:HSIC) is the leading distributor of dental products in the U.S. and various countries around the world. The company also distributes more general healthcare products. Within its core Dental business, the company holds the leading market share position in all major countries (52% of Dental sales are from the U.S., 28% EMEA, 20% Canada/RoW) in which it operates – generally holding ~25-40% share. Historically, the company has been a slow, steady and mostly a-cyclical grower.
In January 2025, KKR announced an agreement to take a strategic stake in Henry Schein. Given their now 15% stake (up from an initial 12%), KKR has actively worked with the board and management to enhance shareholder value. In addition to cost controls, the company has also focused on and seen accelerated growth in its smaller, but (much) higher margin segments (Specialty Products, which includes the company’s private label offerings, and Technology). At just 15x 2026 consensus earnings (vs. 12-25x historically), with a highly defensive business model, and optionality surrounding KKR’s stake and involvement (continue to improve the business or potentially take it private), HSIC shares appear attractive.
Key risks for the company and shares include: uncertainty surrounding KKR’s stake, CEO transition (potentially a positive as efficiency efforts accelerate, but still presents uncertainty), consolidating end markets, and broader healthcare policy uncertainty.”
Henry Schein, Inc. (NASDAQ:HSIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Henry Schein, Inc. (NASDAQ:HSIC) at the end of the third quarter, up from 48 in the previous quarter. Henry Schein, Inc. (NASDAQ:HSIC) generated global sales of $3.3 billion in Q3 2025, with sales growth of 5.2% from Q3 2024. While we acknowledge the risk and potential of Henry Schein, Inc. (NASDAQ:HSIC) 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 Henry Schein, Inc. (NASDAQ:HSIC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Henry Schein, Inc. (NASDAQ:HSIC) and shared the list of stocks Jim Cramer discussed. 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.
