SCHEDULE 13G: Pacer Funds and Affiliates Disclose 6.75% Beneficial Ownership in Fortrea Holdings Inc.

Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer Advisors, Inc., and Joe M. Thomson have jointly disclosed a combined beneficial ownership of 6.75% in Fortrea Holdings Inc. as of December 31, 2024.

Summary

• Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer Advisors, Inc., and Joe M. Thomson (collectively, the "Reporting Persons") have filed a Schedule 13G with the SEC.
• The filing reports beneficial ownership in Fortrea Holdings Inc. (the "Issuer"), a Delaware corporation with common stock (CUSIP 34965K107).
• As of December 31, 2024, the Reporting Persons collectively beneficially own 6,053,606 shares of Fortrea Holdings Inc. common stock.
• This aggregate ownership represents 6.75% of the Issuer's common stock outstanding, based on 89,700,000 shares outstanding as of December 31, 2024.
• Pacer US Small Cap Cash Cows ETF individually holds 3,679,249 shares, representing 4.1% of the class, with shared voting and dispositive power.
• Pacer US Cash Cows 100 ETF individually holds 2,374,357 shares, representing 2.65% of the class, with shared voting and dispositive power.
• Pacer Advisors, Inc. serves as the investment adviser to the Funds and maintains discretionary investment and voting authority over the combined 6,053,606 shares.
• Joe M. Thomson, as the majority stockholder of Pacer Advisors, Inc., is deemed a beneficial owner of the same 6,053,606 shares.
• The Reporting Persons certify that the shares were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the Issuer.

Sentiment

Score: 6

Explanation: The filing is a routine disclosure of beneficial ownership by institutional investors, indicating a passive, long-term investment in Fortrea Holdings Inc. without any stated intent to influence control. This suggests a stable investment by the reporting entities.

Positives

• The filing indicates a significant, passive investment by institutional funds and an individual, suggesting confidence in the company's long-term prospects without seeking control.
• The ownership is held in the ordinary course of business, implying a stable, non-activist investment.

Risks

• The document itself does not detail specific risks related to Fortrea Holdings Inc.'s operations or financial health, as it is solely a disclosure of beneficial ownership.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding Fortrea Holdings Inc.'s future performance or strategic direction. It is a historical ownership disclosure.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This Schedule 13G filing is a routine disclosure of significant passive ownership by investment funds and their advisor, common in the financial industry for transparency regarding large equity positions. It does not provide specific insights into Fortrea Holdings Inc.'s industry trends or competitive landscape.

Comparison to Industry Standards

• This document is a standard regulatory filing for disclosing beneficial ownership exceeding 5% as required by the SEC.
• It does not contain information for direct comparison to industry-specific operational or financial benchmarks of comparable companies or projects.
• The ownership percentage of 6.75% is a significant stake, but its implications are primarily related to shareholder structure rather than operational performance.

Stakeholder Impact

• Shareholders: The disclosure provides transparency regarding a significant institutional ownership stake, which can be viewed positively as it indicates investor confidence. The passive nature of the investment suggests no immediate intent to influence corporate strategy, which might reassure existing management and other shareholders.
• Management: The filing explicitly states the shares are not held for the purpose of changing or influencing control, which could reduce concerns about potential activist pressure.

Key Dates

Keywords

Fortrea Holdings Inc., FTRH, Schedule 13G, beneficial ownership, Pacer US Small Cap Cash Cows ETF, Pacer US Cash Cows 100 ETF, Pacer Advisors Inc., Joe M. Thomson, institutional ownership, SEC filing, common stock