Pelican Bay Capital Management Bets on Zoetis (ZTS) to Capitalize on Expanding Pet Care Market

Company Performance - Pelican Bay Capital Management (PBCM) reported a return of 8.5% for its Concentrated Value Strategy in Q4 2025, outperforming the Russell 1000 Value Index, which returned 3.8% [1] - For the full year, the Strategy achieved a return of 20.6%, compared to 15.9% for the Index [1] - The strong performance was attributed to AI-related stocks and commodities exposure [1] Company Addition - PBCM highlighted Zoetis Inc. (NYSE:ZTS) as a new addition to its portfolio [2] - Zoetis Inc. focuses on animal health medications, vaccines, and diagnostic products, with a market capitalization of approximately $56.165 billion [2] - As of February 4, 2026, Zoetis Inc. stock closed at $126.73 per share, with a -0.35% return in the past month and a decline of 26.07% over the past twelve months [2] Industry Insights - The global animal health market was valued at approximately $50 billion last year and is expected to grow at a rate of 5-6% per year over the next decade [3] - Growth in the animal health market is driven by trends such as pets living longer and increasing acceptance of medicines and vaccines by pet owners [3] - PBCM initiated new positions in Zoetis Inc., along with AECOM (ACM) and FactSet Research (FDS), indicating a strategic focus on high-quality companies in the animal health sector [3]