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Now, let’s get into this week’s selection of fund ideas 👇
3i Group (III LN) by Sands Capital Global Growth
AECOM (ACM US) by TAMIM Global Equities High Conviction
Alphabet Inc. (GOOGL US) by Sands Capital Select Growth
Argenx (ARGX BB) by Sands Capital International Growth
Arista Networks, Inc. (ANET US) by TCW Concentrated Large Cap Growth Fund
Bharti Airtel (BHARTI IN) by Sands Capital Emerging Markets Growth
Carvana (CVNA US) by Sands Capital Global Growth
ClearView Wealth (CVW AU) by TAMIM Australia All Cap 0825
Crane NXT (CXT US) by Southernsun Small Cap Investment
CSX Corporation (CSX US) by TCW Relative Value Large Cap
Duolingo Inc. (DUOL US) by Sands Capital Technology Innovators
Electronic Arts, Inc. (EA US) by TCW Relative Value Mid Cap Fund
Entergy Corporation (ETR US) by TCW Relative Value Large Cap
Equinix, Inc. (EQIX US) by TCW Relative Value Large Cap
Evergy Inc. (EVRG US) by Gabelli Funds
Evonik (EVK GR) by TAMIM Global Equities High Conviction 0825
Figma (FIG US) by Sands Capital Technology Innovators
Ibiden (4062 JT) by TAMIM Global Equities High Conviction
Intercontinental Exchange (ICE US) by Sands Capital Select Growth
Kurita Water Industries (6370 JP) by TAMIM Global Equities High Conviction
Logitech (LOGI SW) by TAMIM Global Equities High Conviction 0825
MercadoLibre (MELI US) by Sands Capital Global Leaders
National Fuel Gas Co. (NFG US) by Gabelli Funds
Nu Holdings (NU US) by Sands Capital International Growth
NVIDIA (NVDA US) by Sands Capital Global Leaders
Oracle Corporation (ORCL US) by Sands Capital Select Growth
RenaissanceRe Holdings (RNR US) by TCW Relative Value Mid Cap Fund
Samsung Electronics (005930 KS) by Sands Capital Emerging Markets Growth
Singapore Exchange (SGX SP) by TAMIM Global Equities High Conviction
SK hynix (000660 KS) by Sands Capital Emerging Markets Growth
Spotify Technology S.A. (SPOT US) by TCW Concentrated Large Cap Growth Fund
Sumitomo Electric (5802 JP) by TAMIM Global Equities High Conviction
Tesla, Inc. (TSLA US) by Gabelli Funds
Urban Outfitters Inc. (URBN US) by TCW Relative Value Mid Cap Fund
WillScot (WSC US) by Silver Beech
Thesis:
3i Group is a London-based private equity firm with a strategic investment in Action, Europe’s largest non-food discount retailer, poised for significant expansion and underpinned by strong unit economics and operational efficiency.
Source: https://drive.google.com/file/d/16Op4OtPu2w5v13tlJxpplcme4SLhokBC/view?usp=drivesdk
Analysis:
3i Group is a London-based private equity firm with a significant stake in Action, Europe’s largest non-food discount retailer. This stake forms the cornerstone of our investment case. Action operates more than 3,000 stores across 12 countries and delivers strong unit economics, with store paybacks typically under one year. We believe the company can more than double its footprint in Europe over the next decade, with longer-term potential to expand beyond the continent. Action embodies the key traits we seek in discount retail: a differentiated value proposition, agile buying, efficient logistics, an assortment that drives repeat shopping, and a strong, enduring culture. Its healthy margin profile and consistent cash generation are underpinned by highly productive, low-cost stores, strong merchandise margins, and robust supply chain capabilities. Beyond Action, we expect modest value creation from the rest of 3i’s portfolio. Select investments—such as Royal Sanders and EBG—are large and promising enough to contribute to long-term growth potential. Importantly, 3i invests solely from its own balance sheet, which in our view insulates the firm from the private equity industry’s cyclical risks and enables disciplined capital deployment.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
AECOM is a leading infrastructure consulting firm poised for growth with strong revenue, expanding margins, and a robust balance sheet, benefiting from increased global infrastructure spending.
Source: https://drive.google.com/file/d/1OeP1wpm4OHY68LY2ltYYvPTjBADjWVpJ/view?usp=drivesdk
Analysis:
AECOM continues to be one of the world’s leading professional infrastructure consulting firms, with exposure to structural themes in energy transition, urban development, and climate resilience. FY24 revenue grew 12% to US$16.1 billion, and EBITDA margins expanded to 6.9%. Management’s focus on operational excellence has driven consistent margin improvement, with net income margins expected to rise above 4% in FY25. The company provides integrated advisory, engineering, and project management services across energy, water, transportation, and social infrastructure, making it a high-quality enabler of global infrastructure investment. AECOM’s balance sheet remains strong, with over US$1.8 billion in cash and modest leverage. The stock trades at approximately 24.5x FY25 earnings but offers premium quality and durable earnings visibility. As governments worldwide continue to increase spending on infrastructure renewal, particularly in the U.S. and Asia-Pacific, AECOM stands to benefit from a sustained multiyear tailwind.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Alphabet is a leading global internet company leveraging AI and extensive consumer reach through Google and YouTube to enhance targeted advertising and expand into new markets.
Source: https://drive.google.com/file/d/1814kL0Yz5jK7TclGljZXBFaVjZ0Wf5NY/view?usp=drivesdk
Analysis:
Alphabet is a global internet company whose principal businesses are Google and YouTube—two of the most-visited websites in the world. The company uses this consumer reach to sell targeted advertising, which benefits from the unique value of search intent data. Advertisers can match consumer demand more precisely, helping drive strong returns on their marketing spend. AI is poised to reshape how people search for information online, creating an opportunity to expand the addressable market. Alphabet appears well-positioned to lead this shift. It can leverage its Chrome browser, AI platform Gemini, and the wide reach of its applications to integrate more intelligent and personalized consumer experiences. These could evolve into AI assistants capable of handling complex queries and directly connecting users to products and services. Amid these shifts, Google Cloud is starting to improve its competitive position. Beyond search and cloud, we are also increasingly optimistic that Alphabet can receive credit from the market for its other dominant and emerging businesses. These include YouTube, as well as technologies such as Waymo. Although still early in commercialization, Waymo benefits from Alphabet’s scale and access to data—both critical for training autonomous systems.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Argenx is advancing targeted antibody therapies for autoimmune diseases, with its first product Vyvgart showing significant growth potential and a strong market position.
Source: https://drive.google.com/file/d/1UiQFQmEuKr_VEMBBmcif_hVFkKdcgUdd/view?usp=drivesdk
Analysis:
Argenx is advancing a new approach to treating autoimmune diseases through targeted antibody therapies. Its first commercial product, Vyvgart, is approved in two rare neurological conditions and is still early in its market penetration, reaching just 10 percent to 20 percent of eligible patients. Uptake is growing, supported by the drug’s convenience, safety profile, and first-mover advantage. Vyvgart also has potential well beyond its initial use cases. With multiple Phase 3 trials underway, it is demonstrating to be a “pipeline in a product,” offering a path to significantly broaden its addressable market. Argenx is also developing a second late-stage molecule, further diversifying its opportunity. The company focuses on underserved diseases where pricing tends to be durable and competition limited. With strong payer coverage and chronic use in responsive patients, Vyvgart generates recurring, annuity-like revenue. Backed by a management team with a track record of scientific and commercial execution, we believe Argenx is well positioned to grow earnings meaningfully over time while delivering strong free cash flow.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Arista Networks, Inc. is a leading cloud networking provider well-positioned to capture market share due to its high-performance products and growing AI-related demand.
Source: https://drive.google.com/file/d/14rtRf5EXWSFOHLx92yBI8nSLX0WWmdlv/view?usp=drivesdk
Analysis:
Arista Networks, Inc. (ANET; Information Technology; 1.32%**) - Arista Networks is a leading high performance, Ethernet-focused, cloud networking provider. The company’s platform uses software to address the needs of large-scale cloud companies, cloud service providers, and large enterprises. EOS (Extensible Operating System) is the company’s scalable, unified software stack that provides a coherent feature set that addresses all segments of the networking market. We believe the company’s product advantages (i.e. speed, single platform consistency, open standards and interoperability, scalability, simplified manageability and high reliability) position the company well to take market share in a rapidly expanding end market buoyed by AI-related demand.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Bharti Airtel is a strong Indian telecom leader poised for growth, benefiting from an expanding market, improved pricing power, and rising profitability due to enhanced operational efficiency and reduced capital expenditures.
Source: https://drive.google.com/file/d/1HI6sAh19EuC596c7LxQTSVsogrn-vh2w/view?usp=drivesdk
Analysis:
Bharti Airtel is a leading telecom provider in India. Airtel and Reliance Jio together command approximately 75 percent share of industry subscribers. While not the largest by subscriber market share, Airtel has historically delivered stronger average revenue per user, profitability, and return on invested capital than both the industry and its main competitor. We believe Airtel is well positioned to benefit from the industry’s long-term growth potential, supported by three factors: an expanding addressable market as telecom services become essential for most Indian adults; greater pricing power enabled by improvements in Airtel’s ability to target customer segments more precisely; and ongoing premiumization as rising smartphone penetration drives higher data consumption. We expect these trends to reinforce customer loyalty and support stronger monetization over time. We also see free cash flow at an inflection point. Revenue growth is accelerating, capital expenditure intensity is falling, and operational efficiency programs such as its “War on Waste” are improving margins. With the nationwide 5G rollout complete and running at only one-third of capacity, we believe capital expenditures have likely peaked for the foreseeable future. We believe this combination of revenue growth, efficiency gains, and reduced investment needs will enable Airtel to expand margins, generate more free cash flow, and grow earnings over the next five years.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Carvana is transforming the fragmented used car industry by providing a convenient, transparent, and competitive online purchasing experience, aiming to capture a significant share of the over $1 trillion market.
Source: https://drive.google.com/file/d/16Op4OtPu2w5v13tlJxpplcme4SLhokBC/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. It’s also a highly fragmented industry, 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.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
ClearView ClearView Wealth (ASX: CVW) has long been a quiet achiever in the life insurance space. A modest market cap ($360 million), a reasonable share of the retail life market (~3.9%), and a history of being lumped in with other legacy life insurance businesses. But here’s the thing: ClearView is no longer a legacy business.
FY25 marked the company’s complete exit from wealth management and the successful rollout of its new cloud- based insurance platform. That’s a big deal. It signals a new phase for ClearView, one defined not by restructuring, but by scaling.
While many insurers continue to wrestle with ancient systems and slow customer onboarding, ClearView is now a digitally native player. Faster quote times, lower servicing costs, and customisable product design. That’s a material advantage in a world where insurance needs are becoming more personalised and where margin pressure is real.
Despite a tough start to the year, ClearView’s second-half results were surprisingly strong, delivering:
- $22.5 million in 2H25 life insurance underlying NPAT (up 12% YoY)
- In-force premiums up 10% to $412.9 million
- ClearChoice product premiums at $112 million since launch
- Embedded value up 5% to $524.4 million (82c per share ex-franking)
- Operating leverage across all major lines
Yes, full-year NPAT was down 5% to $37.7 million, but that only tells half the story. The real shift is operational: customer acquisition costs have stabilised, lapse rates have improved, and claims experience has returned to more predictable patterns. This is the kind of platform a business can grow from. In many ways, FY25 was about turning the ship. FY26 is where we expect it to pick up speed.
Now let’s talk capital management, a topic close to every value investor’s heart.
ClearView has already repurchased 11.4 million shares on-market as part of its FY25 buyback program. That’s about 4.5% of issued capital. The company has flagged its intention to continue, with a potential $20 million buyback capacity in the next 12 months.
Why is this important?
At the time of writing, stock traded on a forward P/E of 7.8x FY26 EPS guidance, buying back shares is an accretive use of capital in our view, as it would boost earnings per share (EPS) by more like 40%. It also suggests that the board sees the shares as materially undervalued.
We estimate the stock is trading at a large discount to embedded value, with no credit given for digital transformation, potential dividends in FY26, or optionality around strategic buyers.
ClearView’s FY26 guidance is, we believe, impressive:
- Gross premium income: $435–$440 million
- Life insurance underlying impact: $47–$52 million
- Group underlying NPAT: $42–$47 million
- EPS: 6.8–7.3 cents (implied P/E of ~7.8x at current price)
In our view, this guidance is both credible and conservative.
Why?
1. Embedded value supports the earnings base, with higher lapse rates normalising and claims well within long- term expectations.
2. ClearChoice is gaining traction, providing better cross-sell opportunities and a fresher brand in adviser channels.
3. Digital systems reduce cost-to-serve, helping margins expand even without top-line blowouts.
And crucially: the business is no longer distracted by non-core operations.
Let’s dig deeper into the tech angle. This isn’t just window dressing. ClearView has spent the better part of two years replatforming its core insurance operations to the cloud and now that’s complete.
Benefits include:
- Faster policy issuance and servicing
- Lower unit costs on a per-policy basis
- Simpler product innovation cycles
- Real-time data tracking across claims and underwriting
This enables ClearView to compete with incumbents on speed and digital delivery, while still offering the scale and trust of a licensed life insurer. For retail and institutional advisers and brokers, that’s an attractive combo, particularly as regulatory scrutiny intensifies.
In many ways, the company now looks like a platform-enabled compounder. That’s not something you could say even 18 months ago.
One of the more subtle features we look for in a business is “founder mentality” even when the founder isn’t in the building.
ClearView has long been run by a pragmatic, capital-disciplined management team. FY25 only reinforced that image. Rather than chasing growth at any cost, they opted for:
Operational simplicity
Scalable systems
Shareholder return via buybacks
Clear guidance and delivery
These are the hallmarks of a management team that acts like owners. As small cap investors, we’re always hunting for this mindset particularly in financial services, where discipline can slip.
We’ve said it before, and we’ll say it again: ClearView remains a takeover target.
Why?
- Clean balance sheet (net cash)
- Fully migrated digital systems
- Scalable retail life platform
- Trading at EV/EBITDA levels that private equity would typically salivate over
We also note that 80% of Australia’s life market is controlled by a handful of large players, many of whom struggle with legacy infrastructure. Acquiring ClearView would instantly plug a modern retail life engine into a broader financial services machine.
Add in potential offshore interest (particularly from Asia) and the story becomes compelling. We’re happy holding for the earnings growth alone — but optionality is there.
Of course, no investment is without risk. With ClearView, the primary ones are:
1. Claims volatility, as always, one-off spikes can impact quarterly earnings.
2. Tech migration challenges, although largely complete, any post-migration bugs could cause adviser friction.
3. Distribution risks, heavy reliance on IFA channels could be impacted by regulatory changes or sentiment shifts.
4. Investor perception, many still treat CVW as a “legacy insurer” and haven’t re-rated the digital potential yet.
That said, we believe the risks are increasingly asymmetric, tilted in favour of upside surprises in margins, earnings, and capital returns.
At the current share price (~56 cents), ClearView trades on:
- 7.8x FY26 P/E
- EV/EBITDA ~6x
- Price to embedded value ~0.7x (ex franking)
For a digitally modern, cashflow-generative, buyback-running insurer with 40% forecast earnings growth, this is cheap.
In fact, it’s hard to find peers with:
- Cloud-based platforms already live
- Strong guidance and historical delivery
- Buyback in place
- High gross margins and low debt
Our internal valuation model suggests a target range of 80–90 cents, excluding any optionality from a potential take-over.
ClearView Wealth is no longer the clunky, underperforming life insurer of old. It has evolved into a digitally enabled, capital-efficient platform business with buyback support, earnings momentum, and the optionality of strategic interest. We believe CVW is at an inflection point. With earnings guidance of up to $52 million, a lean balance sheet, and a shareholder-friendly capital allocation approach, we see material upside from here. In a market starved of quality, low multiple growth — ClearView might just live up to its name.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Crane NXT (CXT) is a niche leader in secure payments and authentication technologies with strong margins, recurring revenue, and strategic growth drivers — offering a compelling long-term opportunity powered by cash flow, not just valuation.
Source: https://drive.google.com/file/d/1nKJTXRfKK2R-qFvrTQeba79EA6GFpmHr/view?usp=drivesdk
Analysis:
Crane NXT (CXT). We initiated a new position in Crane NXT (CXT) in the Small Cap strategy during the quarter. CXT was spun off from Crane Corporation in 2023. We owned the parent company (Crane Corporation) for several years — so, we know the business quite well. This is a nichey business; CXT has a strong foundation in security and authentication technologies and automated payment systems. It now operates through two primary segments: Crane Payment Innovations (CPI) provides a comprehensive suite of payment solutions including cash validation, payment acceptance, vending and kiosk automation, and cash processing systems. This segment serves diverse markets including retail, gaming, transportation, and financial institutions. This segment demonstrates niche dominance in several specialized markets and with more than 350 engineers dedicated to R&D, we believe that they can remain a very strong player. The 2nd segment is Security & Authentication Technologies. They are a global leader in anti-counterfeiting technologies for banknotes, identification documents, and branded goods. Crane’s proprietary micro-optic technologies are used by over 50 central banks. Since the spin — they have done 2 strategic acquisitions — including OpSec Security (2024) and De La Rue’s Authentication Solutions (2025); together they significantly expand CXT’s reach into brand protection, credentials, and digital authentication. The company has more than 200 years of heritage supplying secure currency, Crane Currency is widely trusted by governments and central banks. And, through micro-optics, holography, secure digital solutions, and product traceability, CXT now provides end-to-end brand and identity protection, and we believe that their differentiated technology provides the benefit of pricing power and higher margins relative to more commoditized industrial peers. In our opinion, Crane NXT has consistently posted strong operating margins, and their balance sheet is conservatively levered, even after their most recent acquisitions. The business has a history of generating meaningful cash flows, and we believe that this will continue, providing capacity for both M&A and shareholder returns. Regarding CXT’s leadership, we were cautious about them after the spin-off, but we have been monitoring the new team for two years. We have also had multiple interactions with the CEO and CFO over the past year. Management is effectively applying the Crane Business System (CBS) — a proven framework for efficiency, integration, and continuous improvement. Max Mitchell, the well-regarded former Crane CEO, remains on CXT’s board, adding further oversight. We believe CXT is well positioned in critical, high-margin markets where security, authenticity, and trusted transactions are paramount. Its unique mix of proprietary technologies, strong government and institutional partnerships, recurring revenue base, and disciplined capital deployment makes for a compelling long-term opportunity. We also believe that we were able to initiate the position at an attractive entry point. Our thesis does not require multiple expansion; we believe that cash generation and execution on growth opportunities alone can deliver strong returns.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
CSX Corporation is a leading railroad company with a strong market position and cost advantages, set to benefit from management restructuring, operational improvements, and solid long-term growth prospects.
Source: https://drive.google.com/file/d/15LsJexYfkrso4CnmAkHPRm4CpoE92maa/view?usp=drivesdk
Analysis:
CSX, headquartered in Jacksonville, FL, is a railroad company operating 20,000 route miles in 26 states in the eastern U.S. with access to over 70 ocean, lake, and river port terminals. Key product categories include merchandise (61% of 2024 revenue), intermodal (14% of revenue), coal (15% of revenue), and trucking (6% of revenue). We believe the company’s irreplaceable rail network in the eastern U.S. and cost advantage over trucking supports long-term volume growth and pricing power. At initiation, the stock had a $67 billion market capitalization and met three of the five valuation factors: (price-to-earnings, price-earnings, and price-to-book). Catalysts are restructuring/cost cutting and new management. CSX is well positioned to win some share back from NSC that was lost while CSX’s network performance struggled. CSX has implemented a management restructuring plan, which should yield ~$30 million of cost savings and we expect management to drive operational improvement in the trucking business or sell the asset, which would be well received by investors. We believe that solid revenue growth, margin expansion, and share repurchases supported by free cash flow generation should drive significant long-term EPS growth.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Duolingo is the leading global language-learning app with potential for increased monetization by targeting a larger audience with AI-powered tools.
Source: https://drive.google.com/file/d/1UZeTBPZY_zcM_49KTqWY9IjChrIbGu1X/view?usp=drivesdk
Analysis:
Duolingo is the leading global language-learning application, capturing over 90 percent of monthly active users in the category. It serves a large addressable market of roughly two billion learners worldwide, representing an estimated $100 billion annual spend. Its strength lies in transforming education into an engaging, gamified experience, which has steadily increased conversion of daily and monthly active users into paying subscribers. The platform has also broadened its appeal from career-focused learners to casual users. Looking forward, we see potential for an acceleration in monetization as Duolingo rolls out AI-powered conversational tools. These features are designed to better serve learners pursuing English for professional or academic advancement—a segment that represents more than 75 percent of the market but is underrepresented among current paying users. By tailoring its platform to this larger, less-monetized audience, Duolingo could deepen engagement and expand its long-term opportunity.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Electronic Arts, Inc. is a leading global digital interactive entertainment company focused on game development and distribution, with strategic expansions in AI and new market opportunities, particularly in preparation for the 2026 World Cup.
Source: https://drive.google.com/file/d/1L7REHB9MXiY-O0fTuE06wWK6wmO1Gd65/view?usp=drivesdk
Analysis:
Electronic Arts, Inc (EA; Communication Services) (0.30%**)
MSCI ESG Score:² Overall AA
Electronic Arts, headquartered in Redwood City, CA is a global leader in digital interactive entertainment engaging in the development, marketing, publication, and distribution of games, content, and online services for Internet-connected game consoles, PCs, mobile phones, and tablets. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Anthem, Need for Speed, and Plants v. Zombies brands, and licensed games, including FIFA, Madden NFL, and Star Wars brands. The firm also provides advertising services and licenses its games to third parties to distribute and host its games. Over the last few years EA has focused on IT markets and sells its games and services through digital distribution channels. At initiation, EA had a market capitalization of $38.5 billion and met one valuation factor, price-to-earnings. The fundamental catalyst is new markets/new products. The company is embarking on aggressive expansion of EA Global Football with FC (Football Club) online and FC mobile as the company positions for the 2026 World Cup. More importantly EA is pushing increased integration of its technology across platforms, more robust community creation tools, and the EA SPORTS App. Additionally, EA is investing heavily in AI to accelerate creativity and personalization.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Entergy Corporation is a vertically integrated electric utility with significant growth potential due to new management initiatives and increasing demand from hyperscale customers.
Source: https://drive.google.com/file/d/15LsJexYfkrso4CnmAkHPRm4CpoE92maa/view?usp=drivesdk
Analysis:
Entergy Corporation (ETR; Utilities) MSCI ESG Overall Score: A
Entergy is vertically integrated electric utility with operations in four states (AR, LA, MS, TX). The company has three million retail customers, 24.5GW of generation assets, 16 thousand miles of transmission lines, and 107 thousand miles of distribution lines. Fifty-three percent of 2024 revenue was earned in Louisiana and 79% was C&I customers. End markets include municipalities, utilities, industrial facilities, construction sites, and commercial/residential buildings. At initiation, the stock had a $39 billion market capitalization and met all five valuation factors. Catalysts are new management and new products/markets. On new management, the entire C-suite turned over in the last three years due to retirements. The new management initiatives have led to improved regulator relations and formulaic cost recovery schemes that allow for faster returns on investment. On new products/markets, Entergy conducted a study in 2020 that projected 3-4x industrial sales growth by 2050 due to the gulf coast’s structural cost advantages in energy costs, infrastructure, and regulatory support. Since early 2024, Entergy has signed 8GW of power sales agreements, most notably with Amazon and Meta. Entergy’s status as a vertically integrated utility in favorable regulatory jurisdictions helps hyperscalers with their “time to energy” needs.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Equinix, Inc. is a leading colocation data center provider with a global footprint, strong growth prospects, and a high valuation premium due to its attractive business model and market position.
Source: https://drive.google.com/file/d/15LsJexYfkrso4CnmAkHPRm4CpoE92maa/view?usp=drivesdk
Analysis:
Equinix, headquartered in Redwood City, CA, is the most prominent colocation data center provider in the industry having developed the most widespread network of data centers in the world. The company operates data center facilities, leases the space out to tenants, and provides the power, cooling, and connectivity solutions needed to operate their IT infrastructure. Secular drivers such as global data and compute proliferation (inclusive of what we are seeing in the AI industry), enterprises increasingly outsourcing data center needs, a rising value on interconnection, and the globalization of the world economy all set up promising demand trends for EQIX. The company meets one of the five valuation criteria, dividend yield. EQIX’s portfolio is present in every Tier 1 market globally, has the greatest access to cloud connectivity, and has the densest ecosystems within which tenants can access and share data among relevant business partners. With an attractive business model (recurring revenue at high margins), position as the operator (scale, interconnection, global reach, retail-focused), and a long run for future growth (cloud hybridization, enterprising outsourcing, and inference AI), EQIX should command a valuation premium versus both data center peers and other REIT asset classes.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Evergy Inc. is an electric and gas utility in Kansas and Missouri with a strong growth pipeline, expected to achieve 5%-7% EPS growth driven by increased demand and strategic partnerships.
Source: https://drive.google.com/file/d/1WzTyDzO3KjRf93UAZdY2pWeqV0ir66UT/view?usp=drivesdk
Analysis:
Evergy Inc. (3.7%) (EVRG - $76.02 – NASDAQ), based in Kansas City, Missouri, is an electric and gas utility serving 1.6 million electric customers in central and eastern Kansas, and western Missouri, including Kansas City. In mid-2018, Westar Energy and Great Plains Energy combined to form Evergy. On its second quarter call, EVRG raised its growth pipeline to 15 GWs (from 12.2 GWs), including 11 GWs under active construction (Meta opened a $1 billion/1.4 million square feet data center in August 2025). The utility is finalizing agreements for 1.0-1.5 GWs from data center projects (Kansas and Missouri expansion) with an additional 2.0-3.5 GWs in advanced discussion. The final 10 GWs are in various stages of discussion. Larger customers include ~$1 billion Meta and GOOG data centers, a $4 billion Panasonic EV battery plant (expected COD 2026/4,000 new jobs), and a $100 billion hyperscale data center campus (6 data centers) near the KCI airport. EVRG’s second quarter sales forecast of 2%-3% load growth through 2029 assumed 500 MWs of new load, but an additional 1-1.5 GWs is likely to be added, based on recent agreements. Should the additional load be added, the load forecast would increase to 4%-5% beginning in early 2027. Given growing demand and a forecast 8.5% rate base growth rate, we expect the 4%-6% EPS growth rate to increase to at least 5%-7%.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Evonik is a global leader in specialty chemicals with strong growth prospects in amino acids, resilient profitability, and a solid dividend yield above 7%, despite facing short-term challenges from a weaker European economy.
Source: https://drive.google.com/file/d/1wyR_znZuWTDs-yJGaT0HV6eBZqvI0yJz/view?usp=drivesdk
Analysis:
Evonik is a global leader in specialty chemicals, with market leadership across additives, nutrition, and smart materials. The company’s amino acids business, particularly methionine for animal feed, remains a structural growth driver, though near-term results are weighed down by a weaker European economy. While revenue fell slightly year-on-year, cost-cutting and efficiency gains improved net income to €461m in FY25. With a dividend yield above 7% and a solid balance sheet, Evonik offers downside protection. Its local-for-local production model mitigates trade risk, and any improvement in European energy policy would disproportionately benefit the company. Given cost leverage, even modest revenue growth will now flow through at higher margins.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Figma is a leading digital design platform with a dominant market share and strong potential for growth in an evolving landscape, particularly as thoughtful design remains a key differentiator.
Source: https://drive.google.com/file/d/1UZeTBPZY_zcM_49KTqWY9IjChrIbGu1X/view?usp=drivesdk
Analysis:
Figma is a leading digital design platform whose cloud-based software enables designers, developers, and adjacent roles to collaborate on digital products such as applications, software, and marketing content. Over the past decade, strong execution and a culture of innovation allowed Figma to emerge as the daily-use productivity tool for professional designers, with more than 80 percent share of the UI/UX market. Its dominant position has given it the ability to expand its feature set and upsell adjacent products, while also extending its reach to more than 13 million monthly users, many outside the core design vertical. While generative AI has the potential to reshape design workflows, we believe thoughtful design and user experience—areas where Figma excels—will become increasingly important differentiators. Its leadership position leaves it well placed as the market evolves.
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Thesis:
Ibiden is a vital supplier in the semiconductor value chain, known for its high-performance printed circuit boards and integrated circuit substrates, driving innovation in computing and diversified industrial applications.
Source: https://drive.google.com/file/d/1OeP1wpm4OHY68LY2ltYYvPTjBADjWVpJ/view?usp=drivesdk
Analysis:
Ibiden is a critical supplier at the heart of the semiconductor value chain, producing high-performance printed circuit boards and integrated circuit substrates that support CPUs, GPUs, and next-generation computing hardware. Established in 1912, the company has evolved from its origins in power generation into a world-class manufacturer of electronic materials and advanced ceramics. Its technologies underpin the physical link between chip design and chip functionality, enabling heat management, signal integrity, and mechanical stability at microscopic precision. The company’s Electronics segment provides substrates used by global leaders in computing and high-performance devices. Ibiden’s longstanding relationships with blue-chip customers reflect decades of process mastery, vertical integration, and an ability to consistently meet exacting tolerances that few competitors can match. Beyond electronics, its Ceramics segment supplies diesel particulate filters, high-temperature insulation, and graphite components used across automotive and industrial applications, providing diversification through economic cycles. Ibiden’s competitive advantage lies in its deep materials expertise and its ability to integrate production processes across substrate and ceramic technologies. The company continually reinvests in capacity and proprietary manufacturing methods, including waste-heat recovery and material recycling, which enhance both efficiency and margins. As AI computing, electric vehicles, and advanced packaging drive exponential demand for high-density interconnect substrates, Ibiden is positioned to benefit from a multiyear structural tailwind. Its entrenched role within global technology supply chains makes it a durable compounder of industrial capability.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Intercontinental Exchange (ICE) is poised for long-term growth with strong underlying results and accelerating profitability in its Mortgage Technology division, despite short-term volatility in the broader market.
Source: https://drive.google.com/file/d/1814kL0Yz5jK7TclGljZXBFaVjZ0Wf5NY/view?usp=drivesdk
Analysis:
Intercontinental Exchange (ICE) is one of the world’s largest derivatives exchanges and clearinghouse. The stock lagged the broader market during a period when investors favored businesses with direct exposure to AI. In our view, underlying results were strong, with sales up 10 percent and adjusted earnings per share up 19 percent year over year, both ahead of consensus expectations. Looking ahead, we expect the energy complex to normalize against tougher comparisons following two strong years. Meanwhile, ICE’s Mortgage Technology division (IMT) is showing accelerating refinancing activity off a low base, which is driving meaningful improvements in profitability. In our view, these improvements to IMT profitability are more significant and meaningful to the long-term growth case for ICE versus year-to-year volatility in the Exchange segment.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Kurita Water Industries is a leading specialist in industrial water treatment, essential for the semiconductor, pharmaceutical, and data centre industries, leveraging decades of expertise and advanced technologies to address water scarcity and environmental regulations while ensuring sustainable manufacturing processes.
Source: https://drive.google.com/file/d/1OeP1wpm4OHY68LY2ltYYvPTjBADjWVpJ/view?usp=drivesdk
Analysis:
Kurita Water Industries is one of the world’s leading specialists in industrial water treatment, combining seven decades of engineering expertise with mission-critical relevance across the semiconductor, pharmaceutical, and data centre supply chains. Founded in 1949, the company today operates through two primary divisions, Electronics and General Industry, delivering ultra-pure water systems, filtration technology, and full life-cycle treatment services that support some of the most water-intensive and technologically demanding manufacturing environments in the world.
The Electronics segment continues to benefit from structural growth in semiconductor and display production. Kurita supplies ultra-pure water systems essential for advanced chip fabrication, along with process chemical management that supports higher yields and reduced downtime. Its General Industry division provides boiler, cooling, and wastewater treatment solutions to customers across refining, chemicals, automotive, food processing, and materials industries. Kurita’s embedded position within these operations is strengthened by its integrated service model, which uses on-site engineering, real-time analytics, and long-term maintenance contracts to ensure high efficiency and regulatory compliance.
Water scarcity and environmental regulation are becoming defining constraints on global industrial expansion, particularly in chip fabrication, where facilities consume tens of millions of litres of water per day. Kurita’s recycling technology transforms wastewater into re-usable industrial input, reducing both cost and ecological burden. Its recurring-revenue profile, high switching costs, and long-duration customer relationships provide a resilient cash-flow foundation. As global investment in data centres and semiconductor megaprojects accelerates, Kurita remains essential infrastructure for the digital economy.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Logitech is a leading provider of PC peripherals and digital interaction tools, benefiting from AI and gaming trends, with stable revenues, strong free cash flow, and a resilient valuation reflecting growth potential in hybrid work and gaming markets.
Source: https://drive.google.com/file/d/1wyR_znZuWTDs-yJGaT0HV6eBZqvI0yJz/view?usp=drivesdk
Analysis:
Logitech is the global leader in PC peripherals and digital interaction tools—from keyboards and webcams to gaming headsets and streaming gear. Positioned as a “picks and shovels” play on AI adoption and gaming demand, the company benefits indirectly from Nvidia’s GPU boom, as gamers and streamers pair GPUs with Logitech’s hardware ecosystem. FY25 revenues grew to $4.6bn, with EBITDA stable at ~$759m. Despite margin pressure, Logitech continues to generate strong free cash flow, carries net cash of $1.4bn, and has demonstrated capital return discipline through dividends and buybacks. Trading on ~25x forward earnings, the valuation reflects quality and resilience, with upside from growth in hybrid work, gaming, and streaming ecosystems.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
MercadoLibre is the largest ecommerce and fintech ecosystem in Latin America, poised for significant growth due to its expanding market share, robust logistics, and diverse financial services.
Source: https://drive.google.com/file/d/12oOYoZeDktb_nw_t2MGxzJbDzEzBu63_/view?usp=drivesdk
Analysis:
We initiated a position in MercadoLibre, a business we’ve known well since first meeting the founders in a basement conference room in São Paulo nearly two decades ago. While we should have embraced it earlier in Global Leaders, the company’s execution and growth since then have been remarkable. Looking ahead, we see continued strength across commerce, payments, and monetization, with a valuation that remains attractive both in absolute terms and relative to its growth and history. MercadoLibre is the largest ecommerce and fintech ecosystem in Latin America by market share. The company’s mission is to democratize access to commerce and financial services, serving over 100 million annual unique ecommerce customers and more than 60 million monthly active fintech users. Ecommerce penetration in Latin America remains well below that of other regions, and we expect MercadoLibre to be the primary beneficiary of this long-term growth opportunity. The business’ market share in Brazil went from 26 percent in 2021 to over 40 percent in 2024, and we expect it to eclipse 50 percent over the next decade. The business’ logistics infrastructure is a key competitive advantage, in our view, enhancing the value proposition for both buyers and sellers. Advertising has emerged as a key margin driver for MercadoLibre, given the size of its user base, high incremental profit contribution, and low penetration relative to other ecommerce platforms globally. Beyond ecommerce, MercadoLibre aims to provide the leading digital banking experience in Latin America. Alongside its digital payment platform, the company offers asset management, credit, insurance, and offline payment processing, expanding its role as a comprehensive financial services provider in the region.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
National Fuel Gas Co. is a growing gas and pipeline utility with a strong exploration and production business, benefiting from rising gas prices and data center demand while returning value to shareholders through stock buybacks and increased dividends.
Source: https://drive.google.com/file/d/1WzTyDzO3KjRf93UAZdY2pWeqV0ir66UT/view?usp=drivesdk
Analysis:
National Fuel Gas Co. (2.3%) (NFG – $92.37 – NYSE), based in Williamsville, New York, is a gas and pipeline utility with a growing exploration and production business. The gas utility serves 754,000 customers in Buffalo, New York, and Erie and Sharon, Pennsylvania. The pipeline & storage (P&S) business operates 3,000 miles of pipe and 34 storage facilities, primarily in the state of New York. The E&P business, Seneca Resources, operates in Appalachia (owns 1.2 million net acres), primarily the Marcellus and Utica shales. Seneca’s proved gas reserves at year end FY 2024 were 4,753 Bcfe (compared to 4,536 Bcfe in FY 2023). Forward gas prices have risen due to growing LNG exports and growing electric power demand. We expect NFG to be a significant beneficiary of the Pennsylvania-Ohio data center buildout. NFG is using free cash flow to buy back stock, improve its credit profile, and enhance overall financial strength. NFG raised the annual dividend for the 54th consecutive year to $2.06 per share from $1.98 per share.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Nu Holdings is a digital financial services platform, Nubank, that leverages its competitive advantages to disrupt the underbanked Latin American market, targeting customer acquisition and monetization for growth.
Source: https://drive.google.com/file/d/1UiQFQmEuKr_VEMBBmcif_hVFkKdcgUdd/view?usp=drivesdk
Analysis:
Nu Holdings operates Nubank, a digital financial services platform that serves over 80 million customers in Latin America. Nubank began as an online credit-card issuer in Brazil and now offers a full suite of financial services to over 40 percent of the country’s adult population. The Latin American financial services industry is ripe for disruption, in our view, given a highly underbanked population and low customer satisfaction scores for the incumbent banks. Nubank’s competitive advantages, in our view, stem from its combination of lower costs than traditional banks, high brand trust, and prudent credit underwriting capabilities. We believe this combination enables a superior user experience, supporting low-cost customer acquisition and retention. While customer acquisition will continue to be a growth driver, particularly in Colombia and Mexico, we expect user-base monetization—and thus margin expansion—to be the primary driver of potential incremental profit.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
NVIDIA is a key infrastructure provider for the AI super-cycle, with strong demand for its GPUs, a rational valuation, and significant growth opportunities across AI/ML, gaming, and autonomous driving sectors.
Source: https://drive.google.com/file/d/12oOYoZeDktb_nw_t2MGxzJbDzEzBu63_/view?usp=drivesdk
Analysis:
We initiated a position in NVIDIA, recognizing it as the foundational infrastructure provider for the ongoing AI super-cycle. Demand for its GPUs continues to exceed supply, and recent results from hyperscalers reinforce to us that this dynamic has real duration. The investment case is not new, but what has become increasingly clear is that the GPU vs. ASIC debate is not an either/or—it’s both, at scale—which further solidifies NVIDIA’s central role. While we should have owned it sooner, we believe our entry point, at approximately 30 times next-twelve-month earnings, offers a rational valuation for a business with durable, high growth ahead. NVIDIA is a semiconductor business enabling the future of computing. As the market-leading provider of artificial intelligence (AI) and machine learning (ML) technology—including hardware, software, and end-user applications—NVIDIA is a toll collector on an open-ended growth opportunity, in our view. Our research indicates that AI/ML is early in its adoption, and NVIDIA is encouraging adoption across industries and use cases by decreasing costs and simplifying implementation. Ultimately, we expect AI/ML applications to account for a meaningful portion of global gross domestic product. NVIDIA’s legacy gaming business remains formidable as well. We expect durable demand for its high-end graphics processing units to support pricing power, and new use cases like the metaverse should provide additional growth opportunities. Finally, additional business lines—such as its autonomous driving platform—could provide upside beyond the business’ core AI/ML and gaming verticals. Notably, NVIDIA’s full-stack driving platform features both one-time and recurring revenue streams, driven by its hardware and software components, respectively.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Oracle is emerging as a leader in AI infrastructure, with significant commitments from major AI companies signaling its shift to a top provider in the cloud market.
Source: https://drive.google.com/file/d/1814kL0Yz5jK7TclGljZXBFaVjZ0Wf5NY/view?usp=drivesdk
Analysis:
Oracle is emerging as a leader in infrastructure for AI workloads. Oracle Cloud Infrastructure (OCI) is moving from a second-tier competitor in the CPU-based cloud infrastructure paradigm to the preeminent infrastructure provider for some of the most significant AI companies. An inflection in large-scale, multi-year customer commitments from AI companies, including OpenAI, demonstrates this shift. While Oracle also has well-established database and enterprise resource planning (ERP) software businesses that account for the majority of current revenues and earnings—and themselves have reasonably attractive growth prospects—the long-term growth case increasingly rests on its cloud infrastructure business.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
RenaissanceRe Holdings is a financially sound reinsurer poised for growth through the integration of Validus Re, expected to enhance profitability and book value.
Source: https://drive.google.com/file/d/1L7REHB9MXiY-O0fTuE06wWK6wmO1Gd65/view?usp=drivesdk
Analysis:
RenaissanceRe Holdings (RNR; Financials) (1.36%)
MSCI ESG Score: Overall BBB
RenaissanceRe, headquartered in Hamilton, Bermuda, is a property & casualty reinsurer with nearly $10 billion of net written premiums in 2024. At initiation, the stock had a market capitalization of $11.7 billion and meets all valuation factors save for dividend yield. The company has compounded book value at best-in-class 13.5% CAGR since its IPO in 1995 and has a history of conservative underwriting. The primary catalyst is restructuring as it integrates the acquisition of Validus Re which closed in late 2023 from AIG. In contrast to RenaissanceRe, Validus often found itself with deficient reserves, but with the more conservative new parent re-underwriting its policies, Validus’ margin and profitability should appreciate over time. Reinsurance premium pricing remains flat to modestly down but still at attractive margins even as catastrophe exposure has likely declined in percent terms as the company has grown. RNR’s reserves could be redundant by as much as $12 per share which eventually should add to its book value. With improved cashflows from the Validus Re acquisition and the potential for book value accretion, the stock should appreciate over time.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Samsung Electronics is poised for significant growth as a key supplier of high-bandwidth memory for AI applications and aims to improve its market position in both premium and mass segments amid favorable geopolitical dynamics.
Source: https://drive.google.com/file/d/1HI6sAh19EuC596c7LxQTSVsogrn-vh2w/view?usp=drivesdk
Analysis:
Samsung Electronics is one of the world’s largest diversified technology businesses. We believe Samsung is approaching an inflection point in its earnings trajectory. As one of the world’s leading producers of memory chips, the company is well positioned to become a critical supplier of high-bandwidth memory (HBM) for artificial intelligence applications. We expect customer announcements from notable customers such as Tesla and Apple to eventually help Samsung’s foundry business reach breakeven after years of losses. In mobile, Samsung’s yearslong decline in global market share may slow and potentially reverse. In the premium market segment, the company has an opportunity to gain share from Apple, which faces its own AI challenges. In the mass market segment, Samsung has strengthened its position through its operating system ecosystem, while geopolitical considerations may discourage emerging-market consumers from purchasing Chinese devices. Additional drivers include edge AI use cases and adoption of new form factors such as foldable phones. Samsung’s national importance further reinforces its long-term opportunity. As South Korea develops sovereign AI capabilities, Samsung is likely to be favored over foreign competitors to partner with local AI companies. Over time, we believe the company could evolve from being primarily a memory supplier to becoming a platform partner for startups building foundational models and a leading logic supplier for South Korea’s sovereign AI ecosystem.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Singapore Exchange (SGX) is a resilient market infrastructure play in Asia, demonstrating strong revenue growth, expanding margins, and consistent earnings-per-share growth, making it a core holding for exposure to the region’s financial market development.
Source: https://drive.google.com/file/d/1OeP1wpm4OHY68LY2ltYYvPTjBADjWVpJ/view?usp=drivesdk
Analysis:
Singapore Exchange (SGX) continues to demonstrate why it is one of Asia’s premier market infrastructure plays. FY25 revenue rose 11% to S$1.37 billion, with operating margins expanding to 54% and EBITDA margin at 56%. The growth reflects solid performance across equities, derivatives, and fixed income, complemented by increasing activity in commodities and currency products. Management’s disciplined execution has driven consistent earnings-per-share growth of over 10% per annum in recent years, while its balance sheet remains robust with S$1.5 billion in cash and minimal leverage. SGX benefits from its role as a regional hub for capital flows between East and West, a position reinforced by global de-risking and the shift of listings and trading activity towards stable jurisdictions. With a 2.1% dividend yield and strong cash generation, the stock remains a core holding for steady compounding exposure to Asia’s financial market development.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
SK hynix is the world’s largest dedicated producer of memory chips, poised to benefit from the growing demand for high-bandwidth memory driven by advancements in AI and high-performance computing.
Source: https://drive.google.com/file/d/1HI6sAh19EuC596c7LxQTSVsogrn-vh2w/view?usp=drivesdk
Analysis:
SK hynix is the world’s largest dedicated producer of memory chips. The business benefits from the increasing demand for computational power and data storage, driven by the rise of artificial intelligence (AI) and high-performance computing.
The memory chip industry has consolidated into an oligopoly led by three companies. While SK hynix isn’t the overall market-share leader, it is the only company with an exclusive focus on memory chips, and we believe it stands to benefit most from the growth of high-bandwidth memory (HBM). HBM is essential for AI servers and graphical processing units (GPUs). SK hynix is the world’s leading HBM designer in terms of market share, and our research indicates that the business’ chips outperform competitors in terms of yield, data speed, and heat dissipation. The company’s partnership with the world’s largest GPU designers, semiconductor fabricators, and equipment manufacturers further reinforce its leadership position. These relationships, along with SK hynix’s technology advancements, position the company to capitalize on the increasing demand for high-performance memory solutions, in our view.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Spotify Technology S.A. is the leading audio streaming service with significant market share and growth potential, driven by user acquisition, premium conversions, and pricing power.
Source: https://drive.google.com/file/d/14rtRf5EXWSFOHLx92yBI8nSLX0WWmdlv/view?usp=drivesdk
Analysis:
Spotify Technology S.A. (SPOT; Communication Services; 1.21%) – Headquartered in Sweden, Spotify is the leading audio streaming subscription service with a community of approximately 700 million monthly active users, and over 275 million paying subscribers. The company controls ~1/3 of the global music streaming market, providing SPOT with scale to negotiate with music labels during pricing negotiations. The company manages its business in two segments: premium (~90% of revenues) and ad-supported (~10% of revenues). After not raising prices for over a decade, the company has recently begun to take price with limited impact to customer churn. We believe SPOT has numerous levers to pull to accelerate growth, including adding new users, converting ad-supported users to premium subscribers, and price increases. We are attracted to the company’s scale in a secularly growing market and believe the current share price does not adequately reflect the longer-term cash flow generation potential of the business.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Sumitomo Electric is a leading Japanese industrial and technology conglomerate that plays a crucial role in the global transition towards electrification, advanced connectivity, and high-performance infrastructure across multiple sectors.
Source: https://drive.google.com/file/d/1OeP1wpm4OHY68LY2ltYYvPTjBADjWVpJ/view?usp=drivesdk
Analysis:
Sumitomo Electric is one of Japan’s largest industrial and technology conglomerates, supporting the global transition toward electrification, advanced connectivity, and high-performance infrastructure. Founded in 1897, the company operates across five major domains including Environment & Energy, Automotive, Infocommunications, Electronics, and Industrial Materials. Its reach extends into virtually every layer of modern infrastructure, from renewable power grids to electric vehicles, data networks, and semiconductor fabrication. The Environment & Energy segment produces high-voltage power cables, grid equipment, and superconducting technologies that enable the efficient transmission of electricity across renewables-heavy networks. Its Infocommunications division manufactures optical fibre, fusion splicers, and high-speed networking components essential for cloud computing, 5G rollout, and hyperscale data centres. In automotive, Sumitomo Electric is one of the world’s largest producers of wiring harnesses and electronic subsystems, benefiting from rising EV penetration and the growing complexity of vehicle electronics and safety platforms. The company’s Electronics and Industrial Materials divisions produce ultra-fine wires, laser optics, and high-performance alloys used across advanced manufacturing and energy infrastructure, while sustained investment in R&D supports emerging areas such as next-generation semiconductors and loss-reducing superconducting cables. With broad diversification, long-standing customer relationships, and strong exposure to global megatrends including electrification, automation, and digital connectivity, Sumitomo Electric remains a strategically vital supplier to both developed and emerging industrial ecosystems.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Tesla, Inc. is a leading electric vehicle manufacturer and industrial battery energy storage supplier, leveraging manufacturing superiority and advanced AI-driven autonomous driving technology to unlock growth opportunities beyond its core automotive business.
Source: https://drive.google.com/file/d/1WzTyDzO3KjRf93UAZdY2pWeqV0ir66UT/view?usp=drivesdk
Analysis:
Tesla, Inc. (1.1%) (TSLA - $444.72 – NASDAQ), the world’s second largest electric vehicle manufacturer (trailing only Chinese competitor BYD) and is the leading supplier of industrial scale battery energy storage systems, was added to the Gabelli Growth Fund during the third quarter. On the auto side, the company leverages a cost advantage gained through manufacturing superiority to deliver affordable, high-quality vehicles which further differentiate vs. competition through an AI-enabled autonomous driving system. This “Full Self Driving” system is now 10x safer than the U.S. national average on a miles-per-accident basis and has grown much safer over time (~200% improvement in miles-per-accident since 2019). The Energy Storage business, often overlooked, is uniquely positioned to enable grid operators and other large consumers of power to handle growing electricity demands, particularly as new clean energy sources come online. Over time, we expect Tesla’s capabilities in applied AI and energy storage technology will unlock many large growth opportunities which will allow the company to continue to diversify away from the core auto business.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Urban Outfitters Inc. is a diversified consumer brand portfolio poised for growth through brand recovery initiatives, new product launches, and market expansion, expected to drive substantial stock appreciation over the next two years.
Source: https://drive.google.com/file/d/1L7REHB9MXiY-O0fTuE06wWK6wmO1Gd65/view?usp=drivesdk
Analysis:
Urban Outfitters Inc. (URBN; Consumer Discretionary) (0.64%)
MSCI ESG Score: Overall A
Urban Outfitters, headquartered in Philadelphia, PA, is a portfolio of global consumer brands consisting of Urban Outfitters, Anthropologie, Free People, FP Movement, Anthropologie Weddings, Menus and Venues, and Nuuly. The company operates a total of 744 stores globally consisting of 257 Urban Outfitters stores, 241 Anthropologie stores, 237 Free People stores, and nine Menu and Venues locations. At initiation, the stock had a $6.5 billion market capitalization and met four of the five valuation factors: price-to-earnings, price-to-sales, price-to-book and price-to-cash flow. The company does not currently pay a dividend. Catalysts for the investment include a turnaround at the core Urban Outfitters brand, new product launches, growth in adjacent product categories, and growth in new businesses which we believe will lead to continued share gains and profit and earnings upside. Regarding the Urban Outfitters brand recovery, there are two legs the first being cleaning up the inventory and lowering markdown levels which will take place in fiscal 2026 (CY 2025). This will be followed by the second leg which will include elevating the marketing for the brand and leveraging fixed expenses. The first quarter showed nice progress on this trajectory with the brand comping +2.1% with strong regular price selling. Anthropologie remains focused on three expansion categories: warm weather, athleisure, and intimates and lounge. Management also sees opportunity in Home which had positive sales in 1Q. Finally, there is an opportunity to increase brand awareness at Nuuly (clothing rental business). The company plans to increase the sophistication and the depth of the brand marketing. The company is also increasing the growth at Free People, targeting to open 25 doors in 2025, on a base of 35 doors. In total, we expect these actions to generate top line growth, improve cash flow, margins, and earnings leading to significant stock appreciation over the next two years.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
WillScot is a compelling investment opportunity, trading significantly below its intrinsic value, with a strong market position and an attractive double-digit free cash flow yield, despite current cyclical headwinds.
Source: https://drive.google.com/file/d/1gcD9dt3cyacCQrOQxUR-tc-38AE4wFp1/view?usp=drivesdk
Analysis:
At its current price, we believe WillScot represents the most asymmetric opportunity in the portfolio. Following a ~40% decline from our cost basis, the stock has derated significantly from a ~10x TEV/EBITDA (2024E) multiple to ~7.5x (2025E), and a ~7% free cash flow yield (2024E) to ~13% (2025E). At this valuation, the market is pricing WillScot as a business in secular decline. This stands in stark contrast to our view of WillScot as a compounding industrial services franchise with a dominant market position.
We approach this update with humility regarding our timing. In our Q1 2024 thesis, we posited that modular unit utilization¹ was nearing a cyclical trough. We were too early in this prediction:
- Q1 2024 View: Utilization at 62.5% (96k units) was perceived as close to the floor.
- Current Reality: Utilization has drifted down to 59.3% (89k units).
While we misjudged the cycle’s depth, the resultant sell-off has created a disconnect between price and value that we find extremely compelling. At a 13% free cash flow yield, the upside is obvious, and we do not even need to time the exact bottom of the cycle to generate satisfactory returns; we simply need the business model to remain intact. The market has little idea what WillScot is worth: over the past three years the company’s stock price has oscillated dramatically between $15 and $53 per share.
Triggered by the stock’s selloff, and in accordance with our risk management protocol, we conducted a comprehensive re-underwriting of the business that centered around whether the decline in WillScot’s utilization is cyclical (macro-driven) rather than structural (competition-driven). This included channel checks with customers, competitors, lenders, and industry operators.
We believe our research confirms that the headwinds are cyclical, not structural:
1. Historic Macro Headwinds: the decline in utilization correlates directly with the ISM Manufacturing Index, which has hovered in contraction territory (<50) for nearly 36 months. This duration of contraction has few historical precedents, comparable only to the 2000-2003 post-dot-com recession and the early 1980s.
2. Enterprise Customer Growth: among enterprise customers (Fortune 500 companies, major government institutions, multinational firms, etc.) which are less economically sensitive due to better funding mechanisms and longer project timelines, WillScot continues to grow revenue in the mid-to-high single digits.
3. Pricing Power: in a scenario where a company is losing market share to competitors, we would expect to see pricing deflation as they fight to retain volume. We see the opposite with modular unit pricing up 5%+ year-over-year in Q3 2025, and robust EBITDA margins at 40%+. We believe this shows WillScot is sacrificing volume to maintain price discipline, a hallmark trait of a rational market leader.
4. Rational Oligopoly: WillScot’s well-funded competitors (United Rentals, Sunbelt) are publicly traded entities targeting similar ROCs. These peers cannot undercut WillScot’s pricing while maintaining their own ROC targets. WillScot’s competition is disciplined.
5. Temporary Distress: our interviews revealed that smaller private competitors are liquidating fleets or leasing them uneconomically. While this creates short-term pricing noise, it accelerates industry consolidation. WillScot, with its strong balance sheet, is positioned to capture this share as the cycle normalizes.
The market’s impatience with WillScot’s lack of immediate earnings visibility has created an opportunity to own a high-quality “tollbooth” on North American construction and infrastructure at an extremely attractive valuation. In addition to well-managed leverage, the company has multiple countercyclical levers to optimize free cash flow.
We are extremely supportive of the company’s share repurchase program which has seen the share count decline by 5%+ since the start of the year. We believe WillScot’s intrinsic value is $45+ per share (~12x TEV/EBITDA (2025E)), more than 100% higher than its current share price. Until the cycle turns, we are content as shareholders to collect a double-digit free cash flow yield on a dominant, essential business.
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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