Pale Fire Capital Bets Big on Healthcare With a 2.07 Million Share Baxter International (BAX) Investment

Group 1: Investment Strategy - Pale Fire Capital has heavily bet against Coinbase, Tesla, and Robinhood by purchasing put options during the fourth quarter, indicating a strategic shift in its portfolio towards healthcare stocks [1] - The firm initiated a new position in Baxter International, acquiring 2,074,016 shares valued at approximately $39.63 million, which represents 2.66% of its $1.49 billion reportable U.S. equity AUM as of December 31, 2025 [3] Group 2: Company Overview - Baxter International Inc. is a leading provider of essential healthcare products and services, with a broad product suite and global reach, addressing critical needs in patient care across acute hospital settings and home-based therapies [2] - The company operates a global business model focused on the development, manufacturing, and distribution of medical devices and pharmaceuticals to healthcare providers [3] Group 3: Financial Performance - Baxter International reported significant net losses in 2024 and 2025, but fourth-quarter sales from continuing operations rose by 8% on a reported basis and 3% on an operational basis, with international sales growing by 8% year over year on an operational basis [5]