From Seekingalpha · White Falcon Capital · · 2m
White Falcon Capital Q3 2026 Partner Letter
White Falcon Capital's Q3 2026 portfolio shows strong August gains reversed in September amid rising interest rates.
In brief
White Falcon Capital's Q3 2026 portfolio shows strong August gains reversed in September amid rising interest rates. White Falcon Capital's Q3 2026 portfolio reversed half its August gains in September due to rising interest rates, with a focus on Rocket Companies and Real Matters as key holdings. Originally reported…
Q3 2026 Portfolio Performance
The portfolio performed well through August but more than half of those gains were reversed during September.
Interest Rate Impact
The portfolio has been affected by the sharp rise in interest rates this year which weighed on valuation of certain holdings.
Portfolio Allocation Strategy
White Falcon believes its approximately 10% combined allocation to Rocket Companies and Real Matters offers an attractive risk-reward opportunity.
Canadian Solar Analysis
Canadian Solar has one of the highest upside potentials in the portfolio based on a conservative sum of the parts analysis.
Top 5 Portfolio Holdings
The top 5 positions in the portfolio are Precious Metals royalty companies, Nu Holdings, Unity Software, Rocket Companies, and Amazon.
Rocket Companies Overview
Rocket Companies helps consumers find, buy and finance a home then maintains customer relationships through mortgage servicing and refinancing.
Rocket Companies Subsidiaries
Rocket operates through three subsidiaries: Redfin for home search, Rocket Mortgage for mortgages, and Mr. Cooper for loan servicing.
Real Matters Platform
Real Matters runs a platform that assigns home valuations using local appraisers and matches orders with providers.
Rate Sensitive Holdings
Rocket Companies and Real Matters have been the big detractors over the quarter due to elevated mortgage rates.
AI Impact on Investments
AI is accelerating the pace of change across industries putting even competitive advantages at risk.
Grifols Investment Thesis
Grifols generates cash and pays down debt with strong demand for plasma derived medicines supporting recovery.
Canadian Solar Growth
Canadian Solar continues to expand its U.S. solar cell and module manufacturing footprint while growing battery storage business.
CoStar Group Concerns
CoStar Group's residential business faces uncertainty due to potential ai threats to its apartment matching model.
Rentokil Position
White Falcon sold its position in Rentokil Initial after three years of ownership due to ai changing customer acquisition.
Portfolio Diversification
White Falcon's portfolio is diversified across Compounders, Value Today, and Value Tomorrow ideas in different industries.
Partner Referral Opportunity
White Falcon believes this is an opportune time for referrals given recent portfolio performance.
The short version
White Falcon Capital's Q3 2026 portfolio reversed half its August gains in September due to rising interest rates, with a focus on Rocket Companies and Real Matters as key holdings.
