What happened
According to its latest SEC filing dated Feb. 13, 2026, Pale Fire Capital SE initiated a new position in Baxter International (BAX 0.22%), purchasing 2,074,016 shares. The estimated transaction value, calculated using the quarter’s average price, was $39.63 million. At quarter-end, the stake’s value also stood at $39.63 million, with the total change in position value reflecting both the share acquisition and any stock price movements during the period.
What else to know
- The new Baxter International Inc. position accounts for 2.66% of Pale Fire Capital SE’s $1.49 billion reportable U.S. equity AUM as of Dec. 31, 2025
- Top five holdings after the filing:
- NASDAQ: COIN Puts: $287.60 million (19% of AUM)
- NASDAQ: TSLA Puts: $233.85 million (16% of AUM)
- NASDAQ: HOOD Puts: $187.29 million (13% of AUM)
- NASDAQ: GRPN: $179.29 million (12% of AUM)
- NYSEMKT: BTG: $177.30 million (12% of AUM)
- As of February 13, 2026, shares of Baxter International Inc. were priced at $19.79, down 34.2% over the prior year, underperforming the S&P 500 by 46.0 percentage points
- The company reported $11.24 billion in trailing-twelve-month revenue, $1.14 billion in net income, and a 2.6% trailing dividend yield
- Baxter International Inc.’s position is not among the fund’s top five holdings by value
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $11.24 billion |
| Net Income (TTM) | ($900 million) |
| Dividend Yield | 2.63% |
| Price (as of market close 2/13/26) | $19.79 |
Company Snapshot
- Offers a diversified portfolio of healthcare products including dialysis therapies, intravenous solutions, infusion pumps, anesthesia and critical care products, surgical devices, and connected care solutions.
- Operates a global business model focused on the development, manufacturing, and direct distribution of medical devices, pharmaceuticals, and related services to healthcare providers and alternate site facilities.
- Serves hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and home-care patients in approximately 100 countries.
Baxter International Inc. is a leading provider of essential healthcare products and services, leveraging a broad product suite and global reach to address critical needs in patient care. The company’s integrated approach spans from acute hospital settings to home-based therapies, supporting both acute and chronic care markets. Its established presence and diverse offerings provide a strong foundation for operational resilience and market competitiveness.
What this transaction means for investors
It looks like Pale Fire Capital bet heavily against Coinbase, Tesla, and Robinhood during the fourth quarter by purchasing heaps of put options. It appears the fund is repositioning its portfolio to focus on healthcare stocks. Baxter International was the largest new stock addition the firm made during the fourth quarter. The firm also added new shares of Teladoc Health (TDOC 1.74%), Fractyl Health (GUTS 0.13%), and Syndax Pharmaceuticals (SNDX 1.64%) to its portfolio.
In addition to acquiring new shares of several healthcare stocks, Pale Fire Capital also significantly raised its stake in RegenexBio (RGNX 3.31%), Geron (GERN 3.01%), and Day One Biopharmaceuticals (DAWN +0.09%) during the fourth quarter.
Baxter International reported significant net losses in 2025 and 2024, but there could be light at the end of the tunnel. Fourth-quarter sales from continuing operations rose by 8% on a reported basis, or 3% on an operational basis. The company’s international segment has been particularly encouraging. International sales grew by 8% year over year on an operational basis.
