Alger Mid Cap Growth Fund on QXO, Inc.
Thesis
Alger views QXO as an attractive way to participate in consolidation of the fragmented building-products distribution market. Brad Jacobs is pursuing a strategy of acquiring and integrating distributors of roofing, waterproofing and related construction materials to build a national-scale platform. Softer building-products conditions and financing and regulatory considerations around a large pending acquisition pressured the shares in the quarter.
“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