# 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.
- Title: White Falcon Capital Q3 2026 Partner Letter · Seekingalpha
- Summary: White Falcon Capital's Q3 2026 portfolio shows strong August gains reversed in September amid rising interest rates.
- Keywords: white falcon capital, rocket companies, real matters, canadian solar, grifols, interest rates, q3 2026, portfolio, s&p 500, tsx, money, White
- Source: Seekingalpha — https://seekingalpha.com/article/4956129-white-falcon-capital-q3-2026-partner-letter
- Author: White Falcon Capital
- Published: 2026-10-22T01:15:00+00:00
- Read time: 2 min
- Topics: white falcon capital, rocket companies, real matters, canadian solar, grifols, ai, interest rates, q3 2026, portfolio, s&p 500, tsx, money
## 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.
## Key takeaway

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.