Sessa Capital IM, L.P.

Sessa Capital's Q1 2026 13F is a $5.51B (up from $5.35B, +3.0%) 36-position distressed-and-event-driven portfolio, among the most idiosyncratic and high-conviction books in this filing cohort. The portfolio's defining identity: two mega-cap media-and-healthcare anchors -- Warner Bros Discovery (WBD, 15.9%, $878M, -29.8% shares from $1.31B) as the largest position and Humana (HUM, 11.7%, $646M, +38.6% shares) as the second -- combined with deep exposure to healthcare (Illumina 7.33%, Air Products 6.25%, Sotera Health 6.00%, Teleflex 3.31%, Tandem Diabetes 1.65%, GRAIL 1.61%, Fortrea 0.79%, Minimed 0.54%, Sab Bio 0.15%) and financial-services (Ally Financial 6.05%, Capital One 5.16%, Coinbase 1.59%, Robinhood 1.39%, Strategy/MSTR 0.07%) idiosyncratic names. The Q1 2026 activity: 8 new opens, 8 increased, 8 decreased, 12 unchanged, 2 sold, 38 total changes -- very active for a 36-position book. Key new opens: Kimberly-Clark (KMB, $427M, 7.76%, consumer-staples -- the largest new opening); Teleflex (TFX, $183M, 3.31%, healthcare-devices); Robinhood (HOOD, $77M, 1.39%, fintech); Tesla (TSLA, $74M, 1.35%, auto/energy); Coinbase (COIN, $87M, 1.59%, crypto); Coupa/No, Coupa is not here; Coupang (CPNG, $98M, 1.78%, e-commerce); FTAI Aviation (G3730V105, $98M unchanged? No, this appears in holdings at $98M and was in previous at $79M -- increased 25.0%? Actually the changes data shows FTAI as unchanged at $98M. Let me re-read. changes.unchanged includes 12; FTAI is one of them. OK). Plus Minimed (MMED, $30M), Senseonics (SENS, $12M), Sab Bio (SABS, $8.4M), Ballys (BALY, $4.3M), Atrium (RNA, $7.4M), Flagstar (FLG, $423K). The most dramatic increases: Ally Financial surged +81.3% in shares to $333M; GRAIL surged +371% in shares from 365K to 1.72M to $89M; Coinbase increased +233% from 150K to 500K shares; Humana increased +38.6% but value dropped -$43M; Lexicon Pharmaceuticals surged +497% from 3M to 17.9M shares; Axalta increased +11.5%. The most dramatic decreases: Duolingo collapsed -85% (-$107M to $9.9M); Strategy/MSTR crashed -93.5% (-$68.2M to $3.9M); Solstice Advanced Materials crashed -62.4% (-$149M to $214M); Illumina fell only -3.8% in shares but -$43M in value; Performance Food Group fell -52.0% (-$29M to $24M); US Foods fell -75.2% (-$23M to $10M). Two sold: Moderna (MRNA, was $22M, SOLD); Treehouse Foods (THS, was $11M, SOLD). The AUM increase from $5.35B to $5.51B reflects mark-to-market on existing positions. The 76.00 whaleScore on $5.51B reflects AUM. The portfolio's identity is a concentrated distressed-and-event-driven long book with outsized exposure to media (WBD), healthcare (HUM, ILMN, APD, SHC, TFX, TNDM, GRAL), financials (ALLY, COF, COIN, HOOD, MSTR), and consumer-staples (KMB). The Q1 2026 delta is best read as: Sessa Capital executed a significant sector rotation in Q1 2026 -- dramatically increasing healthcare-and-financial-services conviction (Ally +81% shares, GRAIL +371% shares, Coinbase +233%, Lexicon +497%, Humana +38.6%, Teleflex new at $183M, Kimberly-Clark new at $427M as the largest add, Robinhood new at $77M) while slashing speculative crypto/tech/growth names (Duolingo -85%, Strategy/MSTR -93.5%, Solstice -62.4%, US Foods -75%, Performance Food -52%). The post-Q1 $5.51B book is more healthcare-and-consumer-staples-heavy and less speculative-growth-heavy than Q4, with the WBD mega-anchor at 15.9% still dominating.