Alger Focus Equity Fund on QXO, Inc.
Thesis
Alger views QXO as an attractive way to participate in consolidation of the fragmented building-products distribution industry. Under Brad Jacobs, the company is pursuing a strategy of acquiring and integrating roofing, waterproofing and related-material distributors to create a national-scale platform. Near-term results were pressured by softer building-products conditions and by financing and regulatory issues surrounding a large pending acquisition.
“We view QXO as an attractive way to participate in the consolidation of a large and fragmented distribution industry.”
Key risks
- Softer building-products market conditions
- Financing and regulatory considerations tied to a large pending acquisition