Alger Spectra Fund on QXO, Inc.
Thesis
Alger views QXO as an attractive vehicle for consolidating the large and fragmented building-products distribution industry. The company is led by Brad Jacobs and is building a national-scale platform by acquiring and integrating distributors of roofing, waterproofing and related construction materials. The main near-term pressures are softer building-products conditions and financing and regulatory considerations around 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