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Thesis:
ADMA Biologics is a commercial-stage biopharma company focused on plasma-based biologics for immune deficiencies and infectious disease prevention, with strong growth prospects and a target of $1 billion in revenue by 2030.
Source: https://drive.google.com/file/d/1UA-rQjFhJ4k8GmNl4iJfaQ_X8yokTHzs/view?usp=drivesdk
Analysis:
A new position added this quarter was ADMA Biologics (ADMA), a commercial-stage biopharma company that provides plasma-based biologics for the treatment of immune deficiencies as well as the prevention of infectious diseases. The company’s strategy is to be an end-to-end, vertically integrated provider of plasma-derived biologics addressing patient populations with highly unmet needs. The company’s largest product, Asceniv, addresses primary immunodeficiency patients and has penetrated 3-5% of the target population. Moreover, demand is currently outstripping supply as ADMA’s treatments are preferred by patients versus standard IVIG products. The company is also building a pipeline of plasma-derived therapeutics with the lead product targeting pneumococcal pneumonia. The company is targeting $1.0 billion in revenue in 2030 which would more than double 2024’s level. We believe the company is well positioned to achieve its targets as the industry is capacity constrained and there are no known generic risks to the company’s two largest products.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
APG is a misunderstood and mispriced leader in fire and life safety, expected to deliver 15-25% annual returns through organic growth and strategic acquisitions, supported by strong management and significant free cash flow potential.
Source: https://drive.google.com/file/d/1uCzUOscusoYO1nmKSQfoD3tRdr82A2ZV/view?usp=drivesdk
Analysis:
Our investment in APG, our fire and life safety business, is a great example of our process identifying quality businesses with excellent management teams that are misunderstood and mispriced. APG shares have appreciated 5x since going public in 2020 and still check many of our boxes including scale advantages, durability, a growing industry and excellent management team who has proven to be strong operators and capital allocators. APG remains in our top five positions due to the runway for organic growth and M&A, which should increase free cash flow per share over time. Growing volumes within Safety Services, price increases and the continued mix shift toward inspection-related revenues should provide 5-7% organic growth revenue growth into the foreseeable future. That, mixed with cost leverage, lower capex and higher margin revenue means free cash flow conversion moves toward management’s target of 80%. As they’ve done historically, APG can use their free cash flow to acquire businesses which they can improve on both the gross margin and EBITDA margin fronts through further cost leverage and an inspection revenue focus. The recent acquisition of Elevated Facility Service Group broadens APG’s service offering outside of fire safety and brings with it additional organic growth opportunities. APG is still being valued closer to a cyclical industrial as opposed to the durable, recurring revenue, acyclical, cash generative business they are. I can conservatively underwrite a 15-25% return per year during the next 3-5 years, with growth in free cash flow and slight multiple expansion as the market continues to realize the strength of APGs business and the improved cash flow characteristics, deserving of a higher multiple. APG has the ability to generate around $1.3B in free cash flow by 2028, against a market cap of $14B. With continued execution APG could compound in value for years.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Arthur J. Gallagher (AJG) is the largest middle-market commercial insurance broker in the U.S. and third-largest globally, leveraging acquisitions and technology for sustainable growth in a resilient market.
Source: https://drive.google.com/file/d/1aJUncJs-x0Ip-0F14PY2g3tJRGc-WGbY/view?usp=drivesdk
Analysis:
Arthur J. Gallagher (AJG) is the largest middle-market commercial insurance broker in the United States and the third-largest globally by revenue. The company connects thousands of insurance carriers with small and medium-sized businesses, earning commissions—typically 10 percent to 20 percent—on premiums without assuming underwriting risk. AJG drives growth through acquisitions, consolidating a highly fragmented industry with nearly 40,000 independent brokers in the United States. Its decentralized structure, with 10 regional hubs, enables efficient integration, in our view. The company enhances its profitability by leveraging analytics, workflow automation, and preferential carrier agreements. Recurring demand mitigates the risk to the commercial insurance industry because businesses require coverage regardless of economic conditions, which suits our compounder classification of businesses. AJG has sustained strong financial performance throughout economic cycles. While insurance rate increases are moderating post-pandemic, AJG remains well-positioned for long-term growth, in our view, supported by industry consolidation and technological advancements.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Becton Dickinson is a global medical technology company with a strong market position, currently trading at a low P/E ratio, presenting growth opportunities despite recent headwinds.
Source: https://drive.google.com/file/d/14VgazPl2fx9vZQc7dev2IWUCf-rwqYTr/view?usp=drivesdk
Analysis:
Becton Dickinson (BDX) was purchased in the High Dividend Value Equity strategy. BDX is a global medical technology company engaged in the development, manufacture and sale of a broad range of medical supplies, devices, laboratory equipment and diagnostic products used by hospitals, medical offices, physicians, clinical laboratories, and the pharmaceutical industry. Its BD Medical (50% of 2024 sales) segment focuses on devices for medication delivery, including syringes, needles, infusion pumps, pre-filled syringes and related pharmaceutical services. BD is the world’s largest manufacturer of syringes, with over 80% market share in US hospital syringes. Its BD Life Sciences (26%) segment provides products and services for disease detection and research, with offerings including diagnostic systems, flow cytometry instruments, and reagents used in laboratories for disease identification and monitoring. Its BD Interventional (24%) segment offers surgical and interventional devices, such as catheters and vascular access tools.
BDX has historically been a consistent mid-single-digit top-line growth company given its leadership in medical device categories that are essential to hospitals and medical offices. However, the company has faced a number of short-term headwinds in recent years, including exiting the Covid pandemic, a slowdown in China’s demand for medical supplies, and the Trump Administration’s cuts to NIH funding. Consequently, BDX now trades at its lowest P/E multiple in over a decade, at 12.0x versus a 10-year average of approximately 19x.
While BDX has faced short-term headwinds, we believe there have been no long-term impairments to the company or its business model. Opportunities exist across the portfolio for management to accelerate growth via new product launches, including a next-generation Alaris infusion system and a next generation Pyxis medication and supply management system. Management expects double-digit topline growth from its leading Purewick catheter system, along with continued robust growth in pre-filled syringes driven by the popularity of GLP-1 weight loss drugs. Furthermore, in February of 2025, BDX announced its intention to separate its Biosciences and Diagnostic Solutions businesses, which we believe will result in a stronger business mix and allow BDX to de-lever the balance sheet and repurchase shares. This shift in business mix to higher growth segments should also result in operating margin expansion over time.
Given the essential nature of BDX’s medical products to hospitals, the company has historically been very defensive in recessions and slowing economic environments, with increased EPS during past crises. BDX shares were purchased at a P/E of 12.0x with a 2.5% dividend yield.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
BWX Technologies is a stable investment opportunity due to its crucial role in nuclear propulsion for the US Navy, government-backed revenue, and growth potential in nuclear technology and radiopharmaceuticals.
Source: https://drive.google.com/file/d/1QvQdzOFvzenStW_waEZ9BEPYSVnakRre/view?usp=drivesdk
Analysis:
BWX Technologies is a sole source provider of the components that allow for nuclear propulsion in the US Navy’s nuclear submarine fleet. These multi-decade programs support US superiority in nuclear submarine technology, which is a crucial deterrent to Chinese aggression. Roughly 80% of BWXT’s revenues are derived from government contracts, ensuring stability due to the sensitive nature of its role in the Navy’s nuclear submarine program. In addition to ongoing growth in the US Navy’s nuclear submarine program, agreements with Australia to sell nuclear submarines will act as a tailwind for BWXT. Furthermore, BWXT is involved in providing component parts for small modular nuclear reactors, which may offer innovative solutions for powering data centers amidst rising energy demands. The Trump administration’s focus on reducing regulatory burdens on nuclear power could further drive potential growth in this area. Additionally, BWXT is active in the radiopharmaceuticals sector, supplying isotopes to drug companies with multiple treatments in the FDA approval process. Hence, BWX Technologies represents a strong match for a stable investment portfolio, combining reliable core business growth with significant opportunities in ancillary markets. BWXT was added to the portfolio at a 3% weighting in April.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Carlisle Companies is the largest U.S. manufacturer of commercial roofing materials, benefiting from durable competitive advantages and a non-discretionary market that supports resilient earnings, driven by long-term growth in demand for roof replacement.
Source: https://drive.google.com/file/d/1IBFA1wFCvUI5toDYBLPb9B1NPr8C_-KJ/view?usp=drivesdk
Analysis:
Carlisle Companies is the largest manufacturer and supplier of commercial roofing materials in the United States by market share. The company primarily serves exterior contractors working on large-scale projects, with a business mix concentrated in commercial rather than residential, and on repair and replacement rather than new construction. This orientation has supported resilient earnings across economic cycles. Roofing is, in our view, the most attractive sub-sector within building materials, given its non-discretionary, recurring nature. Commercial roofs typically last 20 to 30 years and are replaced as needed, providing insulation from broader macroeconomic volatility. U.S. commercial floorspace has expanded by approximately 3 percent annually over the past 50 years, and a wave of pre-2008 construction is now reaching replacement age—creating a visible and compelling demand tailwind. Carlisle benefits from several durable competitive advantages, in our view, including a long-term warranty that reinforces contractor and distributor lock-in, a large certification and training program for new roofing contractors, limited incentives for distributors to diversify suppliers, and brand equity built over decades. We expect Carlisle’s long-term growth to be driven by a combination of volume expansion, pricing power, and selective M&A.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Carvana is transforming the fragmented used car industry by providing a superior online purchasing experience, aiming to capture a significant share of the market through convenience, transparency, and competitive pricing.
Source: https://drive.google.com/file/d/1aJUncJs-x0Ip-0F14PY2g3tJRGc-WGbY/view?usp=drivesdk
Analysis:
Carvana is the world’s largest ecommerce used car retailer by revenue. The business seeks to transform the used car industry, which is massive, fragmented, and characterized by a complicated customer experience. Used cars are one of the largest consumer verticals—with over $1 trillion in annual sales—but only a low single-digit percentage of vehicles is purchased online today. The industry is also highly fragmented, with the current market leader accounting for a roughly 2 percent share. The buying process is often emotional, cumbersome, and anxiety-inducing, which is worsened by low trust in traditional salespeople. Carvana seeks to improve this process through its vertically integrated platform, which provides a radically different experience through convenience, transparency, and competitive prices. Nationwide scale and verticalization also result in attractive unit economics, which we believe will drive strong margin expansion over our investment time horizon. Ultimately, we expect Carvana—by providing a service that is faster, better, and cheaper than brick-and-mortar car dealerships—to consolidate a significant portion of used car sales moving forward as more transactions shift online.
We believe a small weight is appropriate given the wide range of potential outcomes, while also allowing flexibility to add opportunistically if the macroeconomic environment deteriorates. In our view, the business remains early in its growth curve and stands to benefit from tariffs, as higher new car prices and limited new vehicle supply increase demand for used cars. However, potential second-order effects—such as weaker consumer demand or rising parts inflation—could put pressure on both earnings and valuation. While we believe the likelihood of a downside scenario is lower, the potential impact is greater than for other businesses we own, due to the compounding risks associated with Carvana’s vehicle financing operations.
Carvana is on firmer ground today than during our prior ownership in 2021–2022. It is now the most profitable U.S. car dealer, and solvency concerns have abated. Leverage is in line with traditional dealers, and structural improvements have driven stronger free cash flow generation.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Compass Group is a leading contract catering provider poised for continued growth in a $300 billion industry by outsourcing food service operations, delivering tailored solutions, and maintaining pricing advantages.
Source: https://drive.google.com/file/d/1iP6i0Dvpxv2ayacrjuxFdQVJqJGNw-8A/view?usp=drivesdk
Analysis:
Compass Group is a leading provider of contract catering and food service support services. We believe the company is well positioned to continue consolidating market share within a nearly $300 billion industry, as more organizations outsource food service operations in response to increasing complexity across labor, supply chains, and consumer preferences. Compass offers a compelling value proposition by improving quality, mitigating risk, and reducing costs for its clients. The company delivers tailored solutions through a diverse portfolio of brands targeting specific sectors such as college campuses, sports venues, healthcare, and senior living. These brands operate independently to enhance contract win rates, while benefiting from the scale of Compass’ group purchasing organization, Foodbuy—one of the largest in the industry. This structure enables Compass to maintain pricing advantages and a more stable margin profile relative to peers. Looking ahead, we expect Compass to deliver above-average earnings growth and stable cash flows, driven by new contract wins and bolt-on acquisitions in the United States and internationally.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
ConocoPhillips is an attractive investment due to its strong free cash flow outlook, disciplined capital allocation, and potential for significant shareholder returns through dividends and buybacks.
Source: https://drive.google.com/file/d/1S_vMSO7MPnN9dO5GXw-4ja2Ob1LFMt8u/view?usp=drivesdk
Analysis:
ConocoPhillips (COP) – The stock was purchased in the strategy during the quarter. ConocoPhillips is a leading independent exploration and production company with a global portfolio of low-cost, high-return assets and a disciplined capital allocation strategy. The company is approaching a free cash flow inflection as capital spending on major long-cycle projects begins to roll off in 2H25, improving its ability to return capital to shareholders. Management targets returning approximately 45% of operating cash flow through dividends and buybacks, supported by efficiency gains and a strong balance sheet. COP trades at 14.4x 2025 EPS and offers an ~8% capital return yield, presenting an attractive entry point amid a constructive long-term oil backdrop.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Dynatrace is a leading provider of observability services, benefiting from strong growth drivers such as the shift to cloud and AI, while consolidating customer demand onto a single platform.
Source: https://drive.google.com/file/d/1tQ9dTdANgFmtnwE1sWIxFcPxZSAxGoXF/view?usp=drivesdk
Analysis:
During the quarter, we upgraded the portfolio with the purchase of Dynatrace (DT), which provides observability services that help customers identify problems within their networks. The company places an emphasis on R&D, which has enabled it to establish a leadership position in the industry by adding capabilities, including security and a leading AI-powered platform, with the goal of having a complete end-to-end solution. There are several tailwinds that support attractive growth, including the shift to cloud and growth in AI which add huge quantities of data and complexity that are driving increased demand for observability solutions. At the same time, customers are looking to consolidate onto one platform, which positions the company favorably to take share.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Enterprise Group is strategically positioned for substantial long-term growth after acquiring exclusive rights to high-margin technology with significant recurring revenue potential across Canada.
Source: https://drive.google.com/file/d/1a-ANi-PFMgn9_BpDuPbCWoJyMUdDBKMT/view?usp=drivesdk
Analysis:
Enterprise announced the acquisition of Flex Energy Canada for $20M. We see this as an extremely important move as they now have exclusivity for the technology across Canada, but they also received current assets generating relatively significant earnings.
With Enterprise now having full exclusivity, they get high margin and recurring service contracts for ~60 permanently installed Flex units. The deal they made is even more attractive since they received 17 turbines that would have cost them ~$12M, plus these turbines are already under contract and bringing in cash.
This deal is similar to how Toromont (TIH) & Finning (FTT) have exclusive contracts for Western and Eastern Canada to supply and service Caterpillar equipment. The service revenue is exclusive, sticky, and has high margins.
We’ll highlight one example of the ~60 permanent Canadian installations of Flex’s nat gas turbines that illustrate the potential for Enterprise. One of the Flex installations is in Grand Prairie, Alberta, and the turbines power the local recreation centre which has been operational long enough to have real performance data. The Grand Prairie Eastlink Centre is powered by two 333 kWh Flex turbines that offload 5M kWh strain for the local electrical grid. In addition, it reduces emissions by 849 tons of carbon dioxide per year and reduces the rec centre’s energy costs by $336k/year. These turbines are a phenomenal ROI for the rec centre strictly based on savings and without factoring in reduced emissions and eliminating demand on the local electrical grid. This example reinforces the win-win dynamic for the end user, and Enterprise should see significant demand across industrial sites, data centers, and energy companies.
As Enterprise continues to scale and diversify end markets, the company will be viewed as a power/infrastructure business. We expect to hold this investment for years to come and it checks all the boxes of the next potential 10-bagger.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Galderma is a leading Swiss dermatology company positioned for long-term above-average earnings growth due to its strong market presence, innovative products, and focus on high-margin injectables and therapeutics.
Source: https://drive.google.com/file/d/10fmZ4ED9WoLZqYsCQUvyNaTPf2rmjXjR/view?usp=drivesdk
Analysis:
Galderma is a leading Swiss-based dermatology company selling injectables, skin care products, and pharmaceutical-grade drugs. Nearly 90 percent of its revenue comes from products that patients pay for directly, which helps insulate the business from insurance-related pricing pressures and government reimbursement risks. The company’s strong brand reputation, combined with a commercial strategy that emphasizes high-touch service for dermatologists, reinforces its leadership in this regulated market. In the United States, Galderma has continued to gain injectable market share by launching longer-lasting neurotoxins and deepening physician relationships. At the same time, its prescription therapeutics business is showing promise, led by Nemluvio, a new treatment for chronic skin conditions that has already delivered encouraging results. Looking ahead, Galderma is well-positioned to expand margins as high-growth, high-margin products scale and efficiencies from its recent spinout take hold. With steady growth in the broader dermatology market—especially in aesthetic treatments—the company’s specialized focus and global reach provide a clear path, in our view, for long-term, above-average earnings growth.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Intercontinental Exchange (ICE) is a leading financial exchange operator that has diversified its offerings across various derivatives, data services, and mortgage technology, positioning itself for sustained above-average earnings growth.
Source: https://drive.google.com/file/d/1IBFA1wFCvUI5toDYBLPb9B1NPr8C_-KJ/view?usp=drivesdk
Analysis:
Intercontinental Exchange (ICE) is one of the world’s largest operators of financial exchanges and clearinghouses. ICE develops proprietary, non-fungible contracts for derivatives and integrates execution and clearing. The company originally focused on futures contracts for power but has since diversified into contracts for crude oil and gas, agricultural commodities, interest rates, equity indexes, foreign exchange rates, and credit default swaps. ICE also monetizes the security pricing and trading data from its exchanges as well as interconnection for trading houses looking to participate. Lastly, through a series of mergers and acquisitions, ICE has developed the first fully integrated, end-to-end platform for mortgage origination, closing, and servicing. This business also contains a range of datasets that can be cross-sold to financial service companies participating in the mortgage finance business. We expect ICE to sustain above-average earnings growth through a combination of organic growth across all three business lines (exchanges, fixed income and data services, and ICE mortgage technology), margin expansion, capital returns, and strategic M&A.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
ITOCHU is a leading Japanese trading and investment company with a disciplined approach to capital allocation, focusing on steady returns and long-term growth across various industries.
Source: https://drive.google.com/file/d/1dAfFJL7406sRsME64O7hg2A17qL8S5ED/view?usp=drivesdk
Analysis:
Founded in 1858 by Ito Chubei, ITOCHU is a leading Japanese sogo sosha (trading and investment company). ITOCHU is like Berkshire Hathaway (which is one of its largest shareholders) without the insurance businesses. It even shares a similar beginning in the textiles business. The trading business focuses on a wide array of products from raw materials to finished products across industries like textiles, chemicals, energy and food. ITOCHU’s investment business takes strategic positions in companies and assets across the value chain. Its approach is hands on and long term, with a focus on integrating investments across the ITOCHU platforms. Currently, ITOCHU has more than 200 consolidated businesses.
ITOCHU is attractive due to its disciplined investment process and capital allocation. It makes no large directional bets and focuses on steady returns in boring businesses. ITOCHU attracts top talent in Japan and offers employees an opportunity to work in a variety of industries and geographies. The company has built its deep expertise trading for and owning businesses in all aspects of the local economy for decades and counts on this deep operating knowledge to make capital allocation decisions.
ITOCHU trades at under 12x P/E and 1.9x trailing price-to-book. We believe ITOCHU can generate a mid-teens return on equity over the medium term which should enable it to grow earnings by high single digits while paying a 2–3% cash yield and doing modest share buybacks.
The key risks with ITOCHU would be a change in investment culture and substantial capital allocation to businesses outside of its core competence.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
MediaTek is a leading fabless semiconductor designer in Asia, driving significant revenue from smartphone SoCs while also expanding into AI, automotive computing, and PCs, with limited geopolitical risks benefiting its market position.
Source: https://drive.google.com/file/d/16HK7d1ZFIQyTSwOHiNbuQIzT1Du97AIr/view?usp=drivesdk
Analysis:
MediaTek is one of the world’s largest fabless semiconductor designers and the largest in Asia. Its system-on-chip (SoC) solutions power billions of devices worldwide, including about one-third of all new smartphones. Smartphone SoCs remain the company’s largest and most critical revenue driver—and are central to our investment case. We expect both pricing and volumes to rise in the premium smartphone segment (devices priced above $500), driven by premiumization trends, 5G adoption, increasing AI functionality, and new form factors, such as foldable devices. Beyond smartphones, MediaTek is applying its design expertise and intellectual property portfolio to AI accelerators, automotive computing, and personal computers. Its project with Google for AI chips and its collaboration with NVIDIA—notably in PCs and automotive solutions—underscores its capabilities in high-performance chip design. We see limited geopolitical or tariff risk for MediaTek. The United States accounts for roughly 10 percent of MediaTek’s revenue, and continued tension between China and the U.S. could benefit non-U.S. suppliers like MediaTek at the expense of Qualcomm, its biggest competitor.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Medical Facilities Corp. is a solid value investment with a strong cash flow, consistent share repurchases, and resilient growth in a stable market.
Source: https://drive.google.com/file/d/1uCzUOscusoYO1nmKSQfoD3tRdr82A2ZV/view?usp=drivesdk
Analysis:
Medical Facilities Corp. is as boring as any value investment can get but has nonetheless done very well following the simple playbook of operating their portfolio of hospitals profitably and using excess cash to aggressively repurchase shares. The surgical hospitals under MFC’s control are durable businesses with minimal competition that have long operating histories and a lack of cyclicality. This allows MFC to grow patient volumes organically 3-4% per year while generating significant cash flow due to a renewed focus on cost controls. MFC is not directly exposed to tariffs, and while they were temporarily hurt by drugs and supplies inflation along with labor inflation for their nursing staff during and post-COVID, costs have returned to a more normalized level with recent quarterly results showing decreases across the board. Along with MFC’s Q1 results, they announced the completion of a Tender Offer via Modified Dutch Auction, whereby 3.4 million shares were repurchased, representing 14.7% of shares outstanding. It’s incredibly refreshing (and quite rare) to see management teams directing excess capital to the best and most valuable use consistently. As this continues, we will benefit. MFC is trading at a double-digit free cash flow yield, growing low single digits and repurchasing 7-10% of shares per year (potentially more with additional tender offers), setting the stage for an 18-20% IRR during the next few years. Optionality and increased upside exist with the sale of additional assets within their portfolio.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
National Grid is a regulated utility operator in the UK and US, poised for significant growth due to strong renewable energy initiatives, expected to drive a 6-8% earnings per share CAGR and consistent dividend growth through the end of the decade.
Source: https://drive.google.com/file/d/10O5wn6Io727_HxP9CeHXKwSuSK4s5a0W/view?usp=drivesdk
Analysis:
National Grid (United Kingdom, Utilities) is a regulated operator of electric transmission and distribution networks in Great Britain and the United States while also operating natural gas distribution in New York and Massachusetts. Around 55% of National Grid’s assets are located in Great Britain which has laid out an aggressive Clean Energy 2030 Plan requiring a significant increase in renewable energy usage. To reach these targets, OFGEM, the national utilities regulator, has pivoted its focus from pushing down consumer prices to facilitating a generational buildout of grid capacity to connect these renewable generation projects. As the largest operator of transmission & distribution networks in Great Britain, National Grid will be a key beneficiary with its regulated asset base growth expected to inflect toward 10% with attractive regulated returns approaching 6% on a real basis. In the US, National Grid’s assets have similar tailwinds with New York and Massachusetts both pursuing greater renewable energy generation that needs to be interconnected with the grid. These state-led plans are expected to generate double digit regulated asset base growth for National Grid’s US assets while simultaneously generating high-single digit to low double-digit returns. The combination of these growth profiles in National Grid’s US and UK businesses are expected to drive a 6-8% earnings per share CAGR through the end of the decade with limited downside given the regulated nature of the business tied to definitive government-led energy plans. This is a meaningful inflection for National Grid which has seen close to flat earnings per share growth over the last 10 years and is in-line to above Western European peers that trade at valuation premiums. In addition, National Grid’s defensive earnings per share growth profile is also expected to drive consistent dividend growth in-line with UK inflation. Finally, National Grid has secured its balance sheet by completing a £7B rights issue in 2024 that was well received by the market and provides sufficient funding through the end of the 2020s. Shares of National Grid are valued at 13.1 times earnings and offer a 4.9% dividend yield.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
NRP is a coal royalty business with a strategy focused on reducing debt, maintaining a cash-positive balance sheet, and offering long-term upside potential despite short-term challenges.
Source: https://drive.google.com/file/d/1uCzUOscusoYO1nmKSQfoD3tRdr82A2ZV/view?usp=drivesdk
Analysis:
NRP is our coal royalty business that was first introduced in our Q4 letter. As a reminder, NRP has been consistently paying down debt since 2017 with the aim of holding a net cash balance sheet, which I estimate they will reach within 12-15 months. Despite the less-than-stellar near-term outlook for NRP, we are playing for long term upside, with a number of attractive elements to this investment that could drive strong returns over time.
As management has telegraphed, if met coal prices linger at current levels, due to lower royalties received, free cash flow generated from NRP’s mineral rights business in 2025 will be less than previous years. This is weighing on the stock so far this year. Keep in mind that NRPs business was stress-tested remarkably during the past decade and remained cash flow positive even in the worst coal price environments. During 2016, when met coal production declined to its lowest levels since 1978, and spot prices for met coal touched below $80/Mt ($177/Mt today), NRP still generated $76mm in free cash flow. That year, they also paid $90mm in interest expense (versus an estimated $10mm during 2025), meaning unlevered free cash flow would have been $166mm, in the worst environment for met coal in 30 years. That is quite attractive.
During 2025, I estimate NRP will generate $130-140mm in unlevered FCF, representing a 10% FCF yield on the current market cap, despite what I consider to be trough met coal prices and trough soda ash prices. These cash flows will be coming back to us in short order, with massive upside on any cyclical upswing in China’s economy, lower global stockpiles and increased pricing. There is also further optionality in soda ash price increases and further carbon capture initiatives on NRPs land. I’d estimate met coal prices to be significantly higher than today’s levels by the end of the decade, as the supply/demand imbalance remains severe. Importantly, 2025 is projected to be another record year for global coal consumption. My estimate of intrinsic value is greater than 100% of today’s price.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Newmark Group (NMRK) is a leading commercial real estate services firm that is gaining market share and improving its revenue model while trading at an attractive entry point due to market over-discounting.
Source: https://drive.google.com/file/d/1-mwzki16jHlFnKAVMuYA66mXfz7RqTZC/view?usp=drivesdk
Analysis:
Newmark Group (NMRK) is a top-tier commercial real estate (CRE) services firm offering a full suite of advisory solutions across investment sales, debt brokerage, leasing, property and facility management, mortgage servicing, and valuation. The company is a structurally improving commercial real estate services platform that is gaining market share in capital markets and mortgage servicing while shifting toward a more resilient, recurring revenue model. Despite muted industry volumes, the company continues to execute well, supported by strong free cash flow, low leverage, and a substantial repurchase authorization. The recent removal of an insider ownership overhang further enhances governance clarity and capital return visibility. With shares trading well below historical levels and peer valuations, the market is over-discounting macro risks, creating an attractive entry point as volumes normalize and durable revenue streams compound.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Norfolk Southern is a rail network operator with a strong presence in the Eastern US, showing signs of recovery in freight volumes after a downturn, and aims to improve efficiency under new CEO Mark George.
Source: https://drive.google.com/file/d/1S_vMSO7MPnN9dO5GXw-4ja2Ob1LFMt8u/view?usp=drivesdk
Analysis:
Norfolk Southern (NSC) – Shares of NSC were purchased in the strategy. With origins dating to 1827, NSC owns and operates a rail network spanning 19,200 route miles and 22 states. From late 2022 through early 2025, the transports industry experienced a freight downturn with a consistent decline in shipment volumes due to destocking and a drop in consumer demand from the pandemic highs. Rail intermodal was hit particularly hard, with 2024 industrywide intermodal volumes down roughly 10% from 2022. However, volumes have begun to recover in 2025, with weekly rail traffic up mid-single digits from a year ago. While concerns remain surrounding the impact of tariffs and global trade fluctuations, NSC should be resilient given its strong presence in the Eastern US connecting 60% of the country’s consumer base and manufacturing base. Importantly, NSC’s operating ratio (OR), a primary measure of rail efficiency, significantly lags that of major peers, with adjusted OR’s in mid- to high 60s versus peers in the low 60s or high 50s percentiles. Increasing efficiency and lowering the OR is a primary goal of Mark George, who took over as CEO in September 2024. Through the implementation of precision scheduled railroading (PSR), Mr. George and his team believe NSC can achieve a low-60s OR in the medium term and a below 60 OR over the longer term. Shares of NSC were purchased at a P/E of 16.8x with a 2.3% dividend yield.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
On Holding is an emerging premium global sportswear brand focused on innovation and sustainability, with strong growth potential in the sports footwear market despite near-term risks.
Source: https://drive.google.com/file/d/1IBFA1wFCvUI5toDYBLPb9B1NPr8C_-KJ/view?usp=drivesdk
Analysis:
On Holding is an emerging premium global sportswear brand, rooted in innovation, design, and sustainability. The company aspires to become the most premium brand in the category and is a direct beneficiary of two powerful secular trends: the growing preference for sport-infused, casual apparel and the shift toward premium products. Founded in Zurich by a former Ironman competitor, On initially focused on running footwear. Its first major innovation—patented cloud soles—helped drive strong adoption among athletes. In less than 15 years, On has become one of the 10 largest sports footwear brands globally by market share. Running remains the company’s core business, but On has expanded into other footwear categories such as tennis and trail, as well as into apparel. We expect On to continue gaining share in the fragmented global sports footwear—and eventually broader sportswear—market. Its premium brand perception is a key differentiator, supporting structurally higher margins through elevated pricing power and limited discounting.
We initiated a small position in On to balance the company’s long-term growth potential with near-term risks, including its elevated valuation and primarily Vietnam-based supply chain. Our estimates incorporate a 10 percent tariff and a modest near-term slowdown in U.S. consumer demand.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Paccar is a well-positioned truck manufacturer with a strong brand portfolio, a diversified business model, and attractive valuation metrics, poised for long-term growth despite short-term uncertainties.
Source: https://drive.google.com/file/d/1S_vMSO7MPnN9dO5GXw-4ja2Ob1LFMt8u/view?usp=drivesdk
Analysis:
Paccar (PCAR) – The stock was purchased in the strategy in the quarter. Paccar is a manufacturer and distributor of trucks and aftermarket parts. It is a global technology leader with advanced powertrain technologies, leading brands (Kenworth, Peterbilt) and a favorable manufacturing footprint. The company has a diversified business model with exposure to high-margin aftermarket parts and demand should be supported by increased infrastructure spending. While the impact of uncertainties and tariffs result in a more muted short-term growth outlook, management expects margins to gradually improve over the year as price versus cost re-balances. The company’s inventory level is at 3 months, which is below historical averages and industry peers, positioning the company for an industry upturn. Paccar trades at an attractive valuation – 14x 2026 EPS, 2.7x book value with a 3.8% dividend yield.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Palo Alto Networks is a leading cybersecurity platform with strong growth potential in Next-Generation Security, driven by the increasing importance of AI in cybersecurity.
Source: https://drive.google.com/file/d/1TuHHmJrBNYJ-xXTtL90v1hRUbBFKWHxL/view?usp=sharing
Analysis:
Palo Alto Networks is a leading cybersecurity platform. It has leveraged its leading position in firewalls to build strong positions in key emerging segments such as Secure Access Service Edge (SASE), Security Information and Event Management (SIEM), and cloud security. These newer segments collectively make up its Next-Generation Security revenue which is now over $5B in annual run-rate revenue with a significant growth runway. We expect cyber security will remain a top priority for customers and continued share gains will support sustainable above average revenue growth. Additionally, we expect AI will be a key factor driving cybersecurity decisions on multiple levels. The usage of AI can make adversaries more effective, can expand the attack surface, and require more advanced security. We believe Palo Alto is one of only a few companies with the necessary data and installed base to thrive in this environment.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
PPG Industries is an attractive investment opportunity due to its diversified revenue streams, strong innovation, potential for earnings recovery, and solid positioning in high-growth markets despite macroeconomic challenges.
Source: https://drive.google.com/file/d/1S_vMSO7MPnN9dO5GXw-4ja2Ob1LFMt8u/view?usp=drivesdk
Analysis:
PPG Industries (PPG) — Shares of PPG were purchased in the quarter. PPG is a leading global manufacturer of paints, coatings, and specialty materials serving diverse end markets, including aerospace, automotive, industrial, packaging, and construction. PPG represents an attractive investment opportunity due to its diversified revenue streams, strong innovation pipeline, and potential for earnings recovery. The company’s focus on value-enhancing acquisitions, disciplined cost management, and exposure to high-growth end markets positions it well for long-term success. While macroeconomic headwinds persist, PPG’s pricing power, cost control measures, and aerospace/industrial recovery provide earnings support.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Pro Medicus is a leading healthcare IT provider that specializes in cloud-native imaging software, demonstrating strong growth potential and high customer loyalty.
Source: https://drive.google.com/file/d/1IBFA1wFCvUI5toDYBLPb9B1NPr8C_-KJ/view?usp=drivesdk
Analysis:
Pro Medicus is a leading healthcare IT provider specializing in imaging and radiology software. Its flagship product, the Visage 7 suite, is redefining the standard of care, in our view, and is used by more than 50 percent of the top-rated hospitals in the United States. Visage 7 is the only cloud-native picture archiving and communication system (PACS), requiring no upfront capital expenditure—unlike traditional, on-premise PACS. The software enables radiologists to interpret images quickly and allows hospitals to increase reimbursement dollars, as they are paid per image. Visage 7 commands twice the price of competitors, wins approximately 80 percent of RFPs, and has maintained 100 percent renewal rate at higher prices. Hospitals have seen increased revenues and cost savings, radiologists have gained speed and accuracy, and patients have experienced better care. Secular demand is supported by a growing shortage of radiologists and rising imaging volumes. Pro Medicus has delivered a high return on investment for customers, integrates with and receives revenue from all AI models, and has been highly profitable. It also enjoys strong brand loyalty among radiologists. Our investment case centers on Pro Medicus expanding beyond academic systems, upselling additional modules, and expanding its market into cardiology.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Southwest Gas Holdings is a mid-cap utility company poised for significant valuation re-rating due to upcoming deconsolidation, proactive deleveraging, robust growth prospects, and improved regulatory conditions.
Source: https://drive.google.com/file/d/1H5m2UdKu_wb184jglyPB3CEX9lJ_myqB/view?usp=drivesdk
Analysis:
Southwest Gas Holdings (“SWX”) is a mid-capitalization holding company with two segments: (i) Southwest Gas Corporation, a stable, regulated natural gas utility serving customers in Arizona, Nevada, and California, and (ii) a majority-owned stake in Centuri Holdings (NYSE: “CTRI”), a North American utility infrastructure services company. Our investment thesis is centered on a straightforward premise: the true value of SWX’s core regulated utility business is currently obscured by Centuri’s consolidated financials, which are in the final stages of being simplified. As this simplification occurs over the coming quarters, we anticipate a significant re-rating of the company’s valuation, driven by several powerful catalysts.
Catalyst 1: Deconsolidation. The Path to a Pure-Play Utility
As of the second quarter, SWX holds a ~52% stake in Centuri, requiring the consolidation of Centuri’s financials. This accounting treatment masks the financials of the core utility. We expect SWX will continue to sell down its Centuri position to below the 50% ownership consolidation threshold within the next six months. The resulting deconsolidation will be a pivotal event, clarifying the investment case for a broader universe of investors and likely triggering credit rating upgrades. The market has historically rewarded pure-play utilities with higher valuations, and we expect SWX to benefit from this migration of capital as dividend-focused funds and retail investors recognize the less-levered, streamlined enterprise.
Catalyst 2: Deleveraging. Fortifying the Balance Sheet
The proceeds from Centuri stock sales are being deployed in a shareholder-friendly manner. Management is systematically reducing holding company debt, which strengthens the balance sheet and mitigates the need to issue the company’s equity at currently depressed prices to fund growth. Our conviction in this disciplined capital allocation strategy is reinforced by the presence of Carl Icahn’s nominees on the Board of Directors (3 of 11 seats) and large equity ownership in the company, which provides strong oversight and an alignment with shareholder interests.
Catalyst 3: Understated Rate Base Growth. Market-Leading Growth
The core utility operates in prime service territories (Arizona, Nevada, California) characterized by robust population growth and accelerating demand for natural gas. While management has guided to a 6%-8% compounded annual growth rate (CAGR) for its rate base over the next five years, our analysis suggests this is conservative. This official guidance notably excludes the ~$1+ billion incremental rate base opportunity at SWX’s Great Basin Gas Transmission Company. Factoring in this opportunity, we project a more realistic 8%-12% rate base CAGR. For a regulated utility, this level of growth is exceptional and market-leading, and is not yet reflected in the company’s low valuation. As SWX’s earnings are intrinsically linked to rate base growth, this represents a powerful, underappreciated driver of future income.
Catalyst 4: Enhanced Profitability. Improving Regulatory Landscape
Historically, SWX has been hampered by backwards-looking regulatory frameworks in Arizona and Nevada, creating a “regulatory lag” that prevented the company from earning its authorized return on equity (ROE). This headwind is shifting as recent legislative and regulatory actions in both states now permit the use of forward-looking formula rates (Arizona in December 2024, Nevada in June 2025). This structural improvement in the regulatory framework will directly address regulatory lag, helping SWX to close the gap between its achieved and authorized ROE and grow its earnings power.
SWX Conclusion: in aggregate, these catalysts of corporate simplification, deleveraging, superior growth, and regulatory tailwind create a powerful case for a substantial re-rating of SWX’s valuation. We believe a premium multiple of 1.6x – 1.8x EV / rate base is warranted for this high-quality regulated utility, leading to an intrinsic value of $104 – $124 per share. This represents 40%+ upside from SWX’s June 30, 2023 share price.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Spotify is the leading audio streaming service with significant market share, inelastic demand, and strong pricing power, poised for gross and operating margin improvement over the next five years.
Source: https://drive.google.com/file/d/1TuHHmJrBNYJ-xXTtL90v1hRUbBFKWHxL/view?usp=sharing
Analysis:
Spotify is the world’s largest subscription streaming audio service by market share. Recorded music has seen significant distribution shifts—from vinyl to cassette to CDs—over the past 50 years. Today, streaming accounts for the bulk of industry revenue, and we view streaming as the natural end-state, given the consumer value proposition and balance of power between artists and labels. Within streaming, Spotify has outsized market share and user engagement. This has resulted in relatively inelastic demand and, in turn, pricing power. We ultimately view the addressable market as anyone with internet access globally. Unlike with video streaming, consumers tend to subscribe to only a single audio streaming service. Spotify’s leadership position has become further entrenched with music labels’ growing dependence on streaming revenue. Over our five-year horizon, we expect gross margin improvement from advertising and partnership agreements with labels, with operating margin improvement also driven by cost discipline.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Sunstone is an undervalued hotel company with a strong balance sheet and potential for earnings acceleration, making it an attractive candidate for acquisition despite recent stock performance challenges.
Source: https://drive.google.com/file/d/1FUYQ5xvDNNJN2nK1rGnzRoamFlAvKZly/view?usp=drivesdk
Analysis:
Sunstone has an underleveraged balance sheet, owns a small portfolio of highly desirable hotels and lacks impediments common among companies with entrenched management. Despite all this, we hold it as a going concern. The stock has performed poorly due to a drop in leisure travel and the delayed delivery of a repositioned hotel in south Florida. However, we believe it is poised to meaningfully accelerate earnings this year and next. Additionally, in a show of commitment to the company’s inherent value proposition, management has been jettisoning the lowest quality assets to purchase Sunstone’s own stock, and doing so at a valuation arbitrage. That means it is selling assets at valuations higher than the valuation at which the company’s repurchased stock is trading. At some point Sunstone’s depressed valuation is going to become too great for investors to ignore or else the acquisition vultures will likely begin circling again.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Sylogist is a non-profit and government software company experiencing a strong turnaround, with promising SaaS growth projections and significant upside potential in its market value by 2027.
Source: https://drive.google.com/file/d/1uCzUOscusoYO1nmKSQfoD3tRdr82A2ZV/view?usp=drivesdk
Analysis:
Sylogist is our long-held non-profit and government software business. During the past three years, Sylogist has executed incredibly well on a turnaround that I believe has turned for good. Since that time period, nearly every key metric is moving in the right direction, including SaaS subscription revenue growth, competitor displacement, channel partner growth, win rates and new logo growth.
Continued execution on the metrics above will eventually lead to increased top line growth and margin expansion along with increased free cash flow. If growth accelerates like management thinks it will, to 30% or above by 2027, Sylogist will approach CAD $35mm in EBITDA by 2027. The current market cap is just north of CAD $200mm. There is execution risk, but what gives me confidence is that this business should be relatively predictable (installed base, low churn, multi-year contracts, annual price increases) giving good visibility 2-3 years out. There are also the recession resistant aspects of ERP and software in general, allowing Sylogist to grow through adverse economic scenarios.
Sylogist’s three-year outlook projects SaaS ARR growth to accelerate from 15% in 2024 to above 20% in 2025, and above 30% in both 2026 and 2027. The company also expects adjusted EBITDA margins to move north of 30% in 2027. With no change in the current 10x multiple, Sylogist could fetch around CAD $15/share versus $9/share today. However, counter cyclical, mission critical, recurring SaaS businesses growing organically 30%+ with minimal churn and decent operating leverage do not trade for 10x. At 15x 2027 EBITDA (around half of peer valuations), shares would offer 110% upside.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Uber Technologies is a leading global platform in mobility and delivery, positioned for long-term growth despite uncertainties around autonomous driving and competitive dynamics in delivery.
Source: https://drive.google.com/file/d/1QvQdzOFvzenStW_waEZ9BEPYSVnakRre/view?usp=drivesdk
Analysis:
Uber Technologies: We added Uber to the portfolio at a 4% weighting in May. Uber is the world’s leading platform in both mobility and delivery. My guess is that all of you reading this letter have used Uber at some point in your lives and I am certain that those of you with college aged children have seen more than your fair share of Uber Eats charges on the old credit card bill. From a financial profile, Uber checks all of the boxes we look for in an investment: revenue driven profit growth, strong free cash flow, fortress balance sheet. Still, despite these obvious positive attributes, the stock is a real battleground based on your view of two key questions that will determine the long-term future of this business: Is autonomous driving a benefit or detriment to Uber? And what is the ultimate competitive balance in Delivery? Of these two, the autonomous driving question is the most pressing and most controversial so we will start there.
Mobility currently represents roughly two-thirds of Uber’s business and is the business where the Uber platform is the unquestioned global leader with gross bookings expected to approach $100B in 2025. It is also an area that will face disruption when self-driving cars become widely available. I think the move to self-driving cars is a matter of when, not if. Numerous well-funded companies are chasing this opportunity, the most notable being Google with Waymo and Tesla. The technology is already here and we are at the point where the concept simply needs to be proven out from a safety standpoint to the satisfaction of regulators and the general public. Having driven on the streets of Houston for the past 25 years, I can state with great confidence that a road full of self-driving cars will be light years better from a safety standpoint than a road full of cars operated by my fellow Houstonians. Once the safety hurdle has been cleared, the next step will be getting a critical mass of these cars made and deployed. That is when things get interesting. Uber’s strategy is to partner with the various manufacturers of autonomous vehicles and integrate self-driving cars into its existing network. Indeed, several partnerships have already been announced including one with Waymo (Google). Notably absent from the partnership track is Tesla. Elon Musk has stated that he has no interest in sharing economics with Uber given that he could build a similar app with ease. Let’s take it as a given that the engineers at Google could do the same for Waymo. With that as a backdrop, why are we confident that Uber will maintain its leadership position in mobility as autonomous vehicles move from dream to reality? The answer is that we think the value proposition of a mobility platform is the ability to deliver consistently short wait times throughout peaks and valleys of demand in a given day. Doing that requires a lot of drivers, human or robot, and this means that a stand-alone competitor seeking to dislodge Uber as the platform of choice would have to put enough cars into the market to satisfy times of peak demand and see them sit idle during times of weak demand. This strikes me as a strategy that is destined to deliver poor returns on capital. Uber believes that autonomous vehicles will one day provide the baseload of market demand while human drivers will meet the surges in demand. I think this is how things play out and in this scenario it makes all the sense in the world for AV manufacturers to partner in the markets in which they choose to compete with the platform app that already has 170M regular monthly users. Further, in a world in which autonomous vehicles become more prevalent and standardized, I can see a world where more people opt for a mobility subscription over the expense of owning and insuring a personal car that sits idle most of the day. This would be another boost to demand over the Uber platform. Autonomous driving creates both an overhang of uncertainty and a potential opportunity for Uber. I think that when we look back at how this market develops in the years to come, this will prove to be an opportunity.
Given all of the moving parts surrounding the impact of autonomous driving on Uber, assessing the competitive dynamic in delivery is a little more straightforward. Unlike mobility where Uber is the unquestioned leader, Uber essentially shares the top position in delivery with Door Dash. While Uber is slightly larger in delivery than Door Dash ($12B vs $11B in 2024), Door Dash holds the edge in delivery EBITDA ($1.9B to $1.5B) and is growing faster (24% vs 18%). The biggest difference between the two competitors is that while Door Dash is currently the unquestioned leader in the US market (65% share versus 23% share), Uber is the far more global player in the space with a presence in over 45 markets versus just 4 four Door Dash. Uber also has the added advantage of its very large and profitable mobility business. Given this fact pattern, I like the long-term setup for Uber to be a share gainer in global delivery. The profits and name recognition of the Uber mobility platform has allowed the company to invest aggressively and seize leadership positions in numerous non-US markets while we are in the land grab phase of the delivery market. Further, Uber’s superior financial position allows it to offer incentives to restaurants to join the Uber Eats platform which should allow for greater choice and facilitate market share gains. Finally, the Uber One subscription business which boasts 30M members paying $10/month gives Uber the ability to attract subscribers by offering discounts on both mobility and delivery. Overall, while I think the delivery market is more than large enough to support two successful competitors, given its financial advantages and global reach I think Uber is well positioned to emerge as a long-term leader in this space.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Vend Marketplaces is a leading online classifieds platform in the Nordic region, dominating major verticals like mobility, real estate, jobs, and re-commerce, with significant growth potential and strong operating leverage.
Source: https://drive.google.com/file/d/16tPja5PSmv2f0R5gd4tB3JoKBEtcwSdW/view?usp=drivesdk
Analysis:
Our new position, mentioned earlier, is Vend Marketplaces, a Norway-based leading online classifieds platform for the Nordic region. Vend has a family of digital brands that hold number-one positions across major verticals, including mobility (used autos, 42% of marketplace revenue), real estate (23%), jobs (20%), and re-commerce (second-hand goods, 15%). The company operates in Norway, Sweden, Denmark and Finland. The brands with entrenched leadership positions represent the vast majority of Vend’s revenue. These platforms connect buyers and sellers and facilitate transactions, from job offers to real estate, cars, and consumer goods. In Norway, the company’s Finn platform comprises about 55% of marketplace revenue. With more than 4 million unique monthly users in a country of slightly more than 5 million people, Finn (which means “find” in Norwegian) is an essential part of daily life in Norway with virtually no serious competition. Finn is 100 times larger than its next closest competitor in mobility (in terms of monthly visits), 80 times larger in real estate, 12 times larger in jobs, and #1 in recommerce. Vend’s other major brands include Blocket in Sweden, DBA and Bilbasen in Denmark, and Tori and Oikotie in Finland.
In 2024, Vend generated $775 million in USD-equivalent revenue. We believe it should grow revenue 15% and earnings 20% to 25% long term, driven by tremendous operating leverage. Vend’s current fixed-cost infrastructure can cover further growth and expansion. We believe the company can improve its operating margins from an adjusted mid 20% level to the mid 30% range over the next three to five years.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
WIIT is a premium cloud provider in Europe with a strong competitive advantage due to its established brand reputation, high client switching costs, economies of scale, and a diversified value creation model that goes beyond just infrastructure.
Source: https://drive.google.com/file/d/1SzwmkqMMOxG6EMRJ-U0uGdRU-GPFyyQ5/view?usp=drivesdk
Analysis:
WIIT’s competitive advantage lies primarily in its strong brand reputation and client experience. The company has solidified its status as “The Premium Cloud” in Europe, which is difficult for competitors to emulate due to the critical first customer challenge. Economies of scale play a vital role, as increasing client numbers dilute the fixed costs associated with running and certifying Tier IV data centers. This not only enhances margins but also allows reinvestment into capacity and quality.
Moreover, WIIT creates significant switching costs for clients, as they depend on WIIT for crucial operations, with high penalties for contract termination and operational disruptions being considerable factors. While these factors develop a “sticky” customer base, it’s essential to note that WIIT’s moat extends beyond just the infrastructure. Around 75% of their value creation stems from managed services, high-margin software, and system integration, diversifying their revenue sources. Following a recent visit to their Dusseldorf data center, their current utilization rates validate projections for future growth. Successfully navigating the legal complexities in the EU gives WIIT a unique position that few can replicate, especially as they allocate capital for onboarding new customers and potential mergers and acquisitions.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Worthington Steel is seen as a cyclical investment opportunity with potential upside despite current challenges in the automotive and construction markets.
Source: https://drive.google.com/file/d/1ajXyeG_Hjd9qrL9XspB63q4GBxNNGnKX/view?usp=drivesdk
Analysis:
Worthington Steel also bounced back in Q2, following strong results for its fiscal fourth quarter (ended May). We’ve held our position for over a year, and while the investment has not met our expectations thus far, we continue to view it as a deeply cyclical opportunity with latent upside. The company is exposed to domestic automotive and construction markets, both of which have weakened since our initial purchase. Tariff-related uncertainty hasn’t helped either—customers have grown cautious, curbing demand for Worthington’s custom steel products used in vehicles, transformers, garage doors, grain bins, and more. Still, we believe Worthington’s challenges are mostly cyclical, not structural. The company has minimal net debt, attractive exposure to electrical steel (a growth area), and a meaningful opportunity to consolidate a fragmented industry. With a current market cap of $1.5 billion, we believe free cash flow could exceed $200 million annually within the next 1–2 years as end markets recover and recent investments in electrical steel capacity come on line.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Xiaomi is a global consumer technology leader with a unique ecosystem that integrates smartphones, IoT devices, and electric vehicles, positioning it for long-term growth through high-quality, affordable products and seamless integration across categories.
Source: https://drive.google.com/file/d/16HK7d1ZFIQyTSwOHiNbuQIzT1Du97AIr/view?usp=drivesdk
Analysis:
Xiaomi is a global consumer technology leader with a uniquely integrated ecosystem spanning smartphones, internet-of-things (IoT) devices, and electric vehicles (EVs). This unified “Human x Car x Home” ecosystem in our view positions Xiaomi to benefit from multiple long-term growth trends, including rising EV adoption, smartphone premiumization, and the emergence of AI-powered consumer devices. What sets Xiaomi apart, in our view, is its ability to deliver high-quality, feature-rich products at accessible price points—supported by supply chain scale, operational efficiency, and a strong brand. The company’s unified HyperOS operating system and large, engaged user base enable seamless integration across product categories, efficient cross-sell, and a rapid feedback loop that informs product development and go-to-market strategies. Xiaomi’s execution track record, omni-channel distribution, and adaptability allow it to move quickly across categories—exemplified by its recent entrance into EVs. While still early, this initiative is central to the company’s long-term strategy and builds on its core strengths in hardware, software integration, and scale manufacturing. With billions of connected devices and a growing foundation in AI, we believe Xiaomi is well positioned to lead in the next wave of intelligent, connected consumer experiences—offering long-term potential across a diversified set of high-growth end markets.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Zedcor is a high-growth investment opportunity with strong revenue and income projections, poised for significant stock appreciation as it expands in the US market.
Source: Link
Analysis:
Zedcor (ZDC) shows promising growth metrics as highlighted below:
We’ve included a simplified financial model of Zedcor below. They recently started to breakout Canadian versus US operating groups in their financials, which is notable because the Canadian business is more established and “built-out”, while the US business is in “expansion” mode. The Canadian business grew 40% in Q1 2025 with +60% EBITDA margins! As the business scales across the US, overall profit margins should continue to grow, so earnings should grow at a much faster clip than revenue.
Our model focuses on Cash Earnings, which is cash the business generates that can be re-invested back into the business at +40% IRRs. The accounting treatment of depreciation versus the reality of necessary maintenance capital expenditures is an adjustment that needs to be made in order to get real cash earnings.
We normally wouldn’t present valuation metrics like this but we’re illustrating how cheap a high-quality business can be if they continue to compound. We experienced this over the years with Constellation Software, where the main criticism was that the stock was expensive, but if you were to project ahead 2-3 years, it would be cheap again. So, the stock might be stagnant from time to time but then time passes and people are able to see what was two years ahead of them is now in front of them.
Another way to explain this systematic way to investing is if Zedcor hits these 2027 estimates, or is anywhere close, that the stock will still be trading on 7x 2027 earnings. If they just posted 50% growth in earnings, you’d think the stock would realistically be trading on at least 20x earnings, which implies 233% stock appreciation from now until then.
We hope Zedcor doesn’t get acquired before reaching its potential which is more than a 10-bagger from here. Considering its quality, size, and outlook, we expect an uplifting to the TSX in the coming year.
Check here for the latest results, quarterly call and analysts' estimates.
Everything you read here is for information purposes only and is not an investment recommendation.
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