Upslope Capital Management, an investment management firm, has released its fourth-quarter 2025 investor letter, showcasing a strong performance for the year and highlighting its recent investment in Henry Schein, Inc. (NASDAQ:HSIC), a leading distributor of dental and healthcare products. The firm achieved a net return of +2.0% in Q4 2025, outperforming both the S&P Midcap 400 ETF and the HFRX Equity Hedge Index, which returned +1.6%. For the entire year, Upslope’s fund delivered an impressive +14.8%, compared to +7.2% and +10.1% for the respective indexes.
Upslope’s strategy focuses on providing equity-like returns while mitigating market risk and maintaining low correlation with traditional equity approaches. According to the firm, the investment landscape is becoming increasingly dynamic, with a shift towards aggressive, thematic, and short-term strategies dominating market decisions. Despite this, Upslope maintains that while identifying investment opportunities is relatively straightforward, the potential for returns remains uncertain amid the current economic climate.
Investment Insight on Henry Schein
In its recent letter, Upslope Capital Management emphasized its investment in Henry Schein, Inc. The company’s stock closed at $79.98 per share on January 16, 2026. Over the past month, Henry Schein’s shares increased by 3.09%, marking a 9.23% rise over the last 52 weeks. With a market capitalization of approximately $9.699 billion, Henry Schein holds a significant position in the dental products distribution sector.
The investor letter detailed that Henry Schein is the leading distributor of dental products in the U.S. and several other countries. The company controls a substantial market share, with approximately 52% of its dental sales coming from the U.S., followed by 28% from Europe, the Middle East, and Africa (EMEA), and 20% from Canada and other regions. Historically, the company has demonstrated steady, cyclical growth.
In January 2025, KKR announced its strategic investment in Henry Schein, increasing its stake from 12% to 15%. KKR’s involvement aims to enhance shareholder value through cost controls and accelerated growth in higher-margin segments, including specialty products and technology. Upslope noted that Henry Schein’s shares are currently trading at 15 times the consensus earnings for 2026, which is favorable compared to historical multiples ranging from 12 to 25 times.
Despite the positive outlook, several risks may impact Henry Schein’s performance. These include uncertainties surrounding KKR’s involvement, potential leadership changes, consolidating end markets, and broader healthcare policy uncertainties.
Market Position and Future Prospects
Although Henry Schein was not among the top 30 most popular stocks among hedge funds, it saw an increase in interest, with 51 hedge fund portfolios holding the stock by the end of Q3 2025, up from 48 in the previous quarter. The company reported global sales of $3.3 billion in Q3 2025, reflecting a sales growth of 5.2% compared to the same period in 2024.
While Upslope Capital Management acknowledges the potential risks associated with Henry Schein, the firm also expresses a preference for certain artificial intelligence stocks, which they believe may offer higher returns in a shorter timeframe. The firm encourages investors to explore these opportunities while remaining aware of the volatility within the healthcare sector.
For more detailed insights, readers are directed to the hedge fund investor letters Q4 2025 page for additional perspectives from other leading investors.
