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Now, let’s get into this week’s selection of fund ideas 👇
Accenture (ACN US) by Harding Loevner Global Developed Markets Equity
Accor SA (AC FP) by Third Avenue Real Estate Value Fund
Admiral (ADM LN) by Royal London Global Equity Income Fund
Adobe (ADBE US) by Schafer Cullen ESG Value Equity Strategy
Agnico Eagle (AEM CN) by Royal London Global Equity Select Fund
Akdital (AKT MC) by Harding Loevner Frontier Emerging Markets Equity
Avantor, Inc. (AVTR US) by The London Company Mid Cap
Avient Corp (AVNT US) by Schafer Cullen Small Cap Value Equity
Ayala Corporation (AC PH) by Third Avenue Value Fund
Banco Santander (SAN SM) by Royal London Global Equity Select Fund
Becton Dickinson (BDX US) by Schafer Cullen ESG Value Equity Strategy
Bochu (688188 CH) by Harding Loevner Emerging Markets Equity
Boise Cascade (BCC US) by Third Avenue Value Fund
Carl Zeiss Meditec (AFX GY) by Harding Loevner Global Small Companies Equity
Champion Homes (SKY US) by Third Avenue Real Estate Value Fund
Equitable Holdings, Inc. (EQH US) by The London Company Large Cap
H2O America (HTO US) by Schafer Cullen Water Impact Strategy
Kazatomprom (KZAP KZ) by Harding Loevner Frontier Emerging Markets Equity
MakeMyTrip (MMYT US) by Harding Loevner Emerging Markets Equity
Medistim (MEDI NO) by Harding Loevner International Small Companies Equity
Mercedes-Benz Group (MBG GR) by Schafer Cullen Value Equity
Midea Group (000333 CH) by Schafer Cullen Emerging Markets High Dividend SMA
Mirion Technologies (MIR US) by Timessquare US Small Cap Growth Strategy
NextEra Energy (NEE US) by Schafer Cullen Value Equity
Old Dominion Freight Line, Inc. (ODFL US) by The London Company Large Cap
Quaker Houghton (KWR US) by Schafer Cullen Small Cap Value Equity
Rogers Corporation (ROG US) by Third Avenue Value Fund
Select Water Solutions (SWS US) by Schafer Cullen Water Impact Strategy
Siemens (SIE GR) by Royal London Global Equity Income Fund
Smurfit WestRock (SW US) by Schafer Cullen Enhanced Equity Income
Sysmex (6869 JP) by Harding Loevner Global Small Companies Equity
The Trade Desk (TTD US) by Harding Loevner Global Developed Markets Equity
UniFirst Corporation (UNF US) by Timessquare US Small Cap Growth Strategy
Unite Group plc (UTG LN) by Third Avenue Real Estate Value Fund
UnitedHealth Group (UNH US) by Schafer Cullen Value Equity
Vinci (DG FP) by Schafer Cullen Global High Dividend ADR
Walt Disney Company (DIS US) by RiverPark Large Growth Fund
Warrior Met Coal (HCC US) by Third Avenue Value Fund
Thesis:
Accenture is focusing on modernizing its business to capitalize on AI opportunities, backed by strong partnerships and a skilled workforce.
Source: https://drive.google.com/file/d/1s2RBcSYhvOtjvtF_LNW0Qkhp09CXO8YT/view?usp=drivesdk
Analysis:
Markets have now pinpointed various software and IT-services companies as likely victims of AI. The portfolio holds Accenture, the leading global provider of IT services, with almost 800,000 employees and annual revenues of US$70 billion. There is debate over whether technological change will commoditize its business, reduce barriers to entry, and lower the margins of incumbents, or instead allow Accenture to capture new revenue streams. Management seems to recognize the significance of generative AI for its industry (dinosaurs saw the meteor, bears will say). Therefore, it’s racing to modernize the business with the goal of delivering, and eventually profiting from, AI functionality across product lines. The question is whether Accenture can evolve fast enough; its progress so far is encouraging. Accenture’s AI bookings doubled to US$5.9 billion in its fiscal year that ended in August. Accenture also remains the number one consultant for Google, Microsoft, Amazon Web Services, Oracle, and NVIDIA, and business with its key partners grew 9% in fiscal 2025. The company’s competitive advantage stems from these key relationships and the breadth of its domain expertise rather than just having armies of computer programmers. It has a uniquely skilled workforce, with 77,000 AI and data specialists, and the capacity to invest further in its people and technological capabilities to stay competitive.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Accor SA is a leading global hotel management and franchise platform with significant market share across various regions, currently trading at a discount to peers despite opportunities for divestment and increased franchise agreements.
Source: https://drive.google.com/file/d/1wkVlmBkR4pHglpJvoM-Ya-zRx5lYvQL3/view?usp=drivesdk
Analysis:
Within this framework, the Fund added to its investment in Accor SA (“Accor”). Based in France, Accor is a global hotel management and franchise platform that includes nearly 6,000 hotels (and 850,000 rooms) across more than 110 countries—the vast majority of which are in Europe, the Middle East, Asia Pacific, and South America. The regional exposures are especially notable, as not only does Accor have the leading position in each region by market share, but those areas are earlier in the transition of hotel owners entering into management and franchise agreements with the global platforms. Such arrangements have been quite beneficial historically, as the affiliation allows the property owner to side-step the Online Travel Agencies (“OTA’s”) for reservations, leading to higher margins and more repeat business given the well-established loyalty programs. In fact, it has become the standard structure in North America with more than 80% of hotels estimated to be affiliated with one of the various platforms, versus only 40% in most international markets. Notwithstanding this opportunity, as well as having largely completed the transition to a “pure play” management and franchise company, Accor continues to trade at a significant discount to its global peers. Insofar as Fund Management can gather, this discount is largely attributable to the company (i) retaining stakes in certain legacy ventures (e.g., AccorInvest), (ii) generating a greater share of its earnings from management contracts versus franchise agreements, and (iii) being “underweight” in the luxury segment. However, it would not be inconceivable for the company to divest its AccorInvest stake, increase its franchise agreements under its Fairmont and Raffles brands, and utilize its strong financial position to repurchase shares over the medium term. Should such a path materialize and Accor common remain at 35-40% discount to its global peers, Fund Management would not be surprised to see the company move its listing to another market, or even engage in more comprehensive forms of resource conversion for individual business units (or the entire entity).
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Admiral is a differentiated insurance company focused on a mature motor insurance market, leveraging cost leadership and data-rich resources to generate market-leading returns amidst evolving technological challenges.
Source: https://drive.google.com/file/d/1_NhBP0YPGJ9ILf0tg4mTQR3tDYaEhrJk/view?usp=drivesdk
Analysis:
We also purchased insurance company Admiral, which we view as a differentiated Slowing & Maturing and appreciate management’s choice to refocus on core markets. Admiral has a single focus on a relatively mature motor insurance market. It has continuously taken market share and generated market-leading returns thanks to cost leadership in direct selling and ownership of data-rich price comparison websites, which support its investment moat. The strength of this moat could become increasingly important in the coming years, with technology breakthrough in areas like autonomous vehicles and AI / advanced computing potentially transforming the industry.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Adobe is a competitive leader in digital content creation and customer experience software, poised for long-term growth through innovative AI integrations and attractive valuations relative to peers.
Source: https://drive.google.com/file/d/1ljPFWoD0Vcwk86zBvfa_nqI1N9j9QEmM/view?usp=drivesdk
Analysis:
Adobe (ADBE) was purchased in the strategy this quarter. The company is a global leader in digital content creation, document productivity, and customer experience software delivered through its Digital Media (Creative Cloud, Acrobat) and Digital Experience (Experience Cloud) platforms. Adobe has historically compounded recurring revenue with strong margins by providing core creative and document workflows that are essential to designers, marketers, and knowledge workers worldwide. While the company continues to navigate near-term headwinds around competitive AI offerings, evolving pricing structures, and a more selective enterprise spending environment, we are confident in the company’s long-term business model. As a system-level provider of creative software solutions, Adobe is well positioned to re-accelerate growth via the continued rollout of Firefly generative services across flagship apps, deeper adoption of Acrobat AI Assistant within document workflows, and expanding use of GenStudio and related Experience Cloud capabilities that link content generation to creative campaign performance. We believe that management’s go-to-market strategies should create additional levers for engagement, retention, and monetization across both individual and enterprise customers, while the company’s scale, distribution, and reputation for commercially safe AI models reinforce its competitive moat. We also expect disciplined capital allocation, focused on organic innovation, ecosystem partnerships, and ongoing share repurchases, to add to long-term value creation. Shares are attractively valued relative to large-cap software peers, and we believe sustained product leadership, tighter integration across cloud, and operating leverage as AI features mature provide a clear path for long-term growth. Shares of the company are valued at 15 times forward earnings and the company holds an ESG rating of AAA from MSCI.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Agnico Eagle is considered the highest quality gold miner in the world, driven by structural demand dynamics in the gold market.
Source: https://drive.google.com/file/d/10r4rfI097Vv7ryZzgAZKfYhFk9V_cAuB/view?usp=drivesdk
Analysis:
We bought a new position in gold miner Agnico Eagle (Mature). Within the metals & mining sector, our analysis has been through the lens of the capital cycle: look for opportunities where capital has left the industry, and therefore supply is unable to respond to a near-term demand shock. For gold, we found the capital cycle is not disrupted on a cyclical basis, but on a structural basis. With 99% of the world’s gold already above ground, high prices do not catalyse supply as in other commodities. Demand is therefore the key marginal driver. Here too we think the outlook is asymmetric. We think the external environment remains significantly skewed to the upside. Agnico Eagle is, in our view, the highest quality gold miner in the world.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Akdital is a rapidly expanding Moroccan hospital chain focused on oncology and cardiology, demonstrating strong growth and innovation in private healthcare while planning significant future expansion.
Source: https://drive.google.com/file/d/1Ngp0Vl60WpfK_Smnc24dXnQje7L5d88o/view?usp=drivesdk
Analysis:
An example of that is Akdital, a Moroccan hospital chain with particular strengths in oncology and cardiology treatments that we visited this summer and invested in this fall. Founded in 2011 as a 50-bed family-owned hospital, Akdital has expanded rapidly. By December 2024, it was the country’s leading private health-care provider, with around 4,000 beds across 33 facilities in 19 cities. The hospitals provide comprehensive health-care services with the ability to diagnose and treat patients in the same facility using the kinds of equipment rarely available elsewhere in Morocco; Akdital for example purchased the country’s first da Vinci robot-assisted surgery system last year. What makes health care attractive as an industry is its durable growth, stable profitability, and innovation. That’s on display in Morocco, where the demand for health-care services continues to rise due to an aging population and increasing lifestyle-related diseases related to diet and smoking habits. In recent years the government revamped and reformed the health-care system to better serve its citizens. It merged two public health-care insurance programs into one comprehensive program that ensured citizens had access to both private and public hospitals, with the government assuming premium payments for low-income households. Today, about 27 million Moroccans, 75% of the population, are covered by a health-insurance plan, a record level of coverage in Morocco. These reforms also led to the creation of private hospital chains, which had not previously existed in Morocco, and unlocked significant private equity investment. Despite the high bargaining power of the state-owned insurance companies, Morocco did not introduce price controls on health care. Instead, hospitals can set their own prices above the government’s reimbursement rate, with patients paying the difference out of pocket. This allows the hospitals to differentiate by charging higher prices for better quality services and supports private-sector growth. Greater insurance coverage has increased patient access, while the liberalization of investment rules has enabled private hospital chains to gain significant market share from poorly managed public hospitals. During our tour of Akdital’s facilities, we saw PET scan machines and radiotherapy accelerators. We passed through crowded waiting rooms and busy hallways and past rooms with patients being treated in settings that looked as state of the art as the hospitals around our central New Jersey office. We met and talked to doctors and nurses and support staff (most but not all of whom spoke French) and came away impressed by their professionalism. These offerings help attract affluent patients willing to pay out of pocket for treatments that are not covered by insurance. Akdital’s ability to attract and retain top physicians is a key advantage. Moroccan law prevents doctors from being hospital employees; instead, they work on a fee-for-service basis. This also means doctors, who can ostensibly go anywhere, are vital to patient recruitment. According to Akdital’s management, 70% of patients are referred by specific physicians (i.e., the patients come in just to see that doctor) while 30% are patients who trust Akdital enough to assign doctors to them. To secure top talent, Akdital ensures timely fee payments, a major issue in public hospitals, and offers equity partnerships to experienced doctors, aligning incentives to direct their patient traffic to Akdital. Akdital’s competitive advantages helped it raise its share of national bed capacity from 2% in 2020 to 8% in 2024. Its plans for the next five years are to expand the number of hospital facilities from 33 to 62 and nearly double its bed capacity to 6,200 while also extending its services to 13 additional cities. It also plans to establish 200 smaller diagnostic centers that can perform basic health care checks, diagnosis, and treatment in small cities of fewer than 40,000 people. Akdital has a balance sheet that is robust enough—it is modestly levered, has ample borrowing capacity, and sufficient cash flows—to fund its growth without the need to raise more equity capital that could dilute existing shareholders, which is important since it is also targeting expansion into Saudi Arabia and the United Arab Emirates. High-quality companies such as Akdital will ultimately demonstrate their value over time. Because of that, we remain confident in our process, our long-term quality-growth philosophy, and the companies in which we have invested on your behalf. While this year’s performance has been disappointing, our disciplined approach has a proven long-term track record, and we believe it will continue to do so.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Avantor, Inc. (AVTR) is a leading provider of mission-critical products and services for the life sciences and biopharma industries, with a resilient business model and strong long-term growth potential despite near-term market challenges.
Source: https://drive.google.com/file/d/16nX59mtcRdLPBZQnXuIrHJX4nuCd1LnB/view?usp=drivesdk
Analysis:
Avantor, Inc. (AVTR) – AVTR is a leading provider of mission-critical products and services primarily to the life sciences and biopharma industries. AVTR offers an extensive catalog for research and laboratories, ranging from general laboratory supplies to specialized consumables used in bioprocess manufacturing. AVTR operates as an asset-efficient distribution platform, supported by a high level of recurring revenue (85%). Its products are often specified directly into customer processes, resulting in high switching costs and stable demand. AVTR’s scale, broad product portfolio, and integration into customer workflows with on-site support help reinforce its market position. Over the long term, we believe AVTR is well positioned to benefit from structural trends such as the increasing adoption of biologics, the growth of personalized medicine, and rising global investment in biopharma R&D. While near-term end market weakness has weighed on valuation, we believe this does not fully reflect the company’s resilient business model, competitive advantages, and long-term earnings potential. A recent large insider purchase from a board member gives us greater confidence in our timing, and we remain optimistic about the outlook.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Avient Corp is a global provider of specialized polymer materials and additives focused on high-margin markets like healthcare and defense, with strong execution and a strategic shift towards sustainable innovation and operational excellence, positioning it for growth and value outperformance.
Source: https://drive.google.com/file/d/1nDDnTQ5NEpQ6LGMMH9meitokvU5rZ7Xj/view?usp=drivesdk
Analysis:
Avient Corp (AVNT) is a global provider of specialized polymer materials, colorants, composites, and additives serving key end markets such as packaging, healthcare, defense, and industrial manufacturing. The company has successfully transitioned from a commodity materials business to a higher-margin specialty formulator through strategic acquisitions and divestitures, focusing on sustainability and advanced material innovation. Execution remains strong, supported by cost discipline, productivity initiatives, and an increasing mix of recurring and value-added revenue streams. Exposure to resilient sectors like healthcare and defense provides stability, while demand recovery in packaging and industrial applications offers cyclical upside. Management continues to drive mix improvement, margin expansion, and deleveraging through operational excellence and targeted capital allocation. Avient is also investing in next-generation materials aligned with long-term trends in electrification, lightweighting, and circular manufacturing. With a stronger balance sheet, expanding free cash flow, and a structurally improved earnings profile, we believe Avient is well positioned to compound value and outperform traditional chemical peers over the coming cycle.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Ayala Corporation is a Philippine conglomerate with significant stakes in banking, real estate, telecommunications, and power generation, trading at a multi-decade low valuation while poised for long-term growth and potential shareholder value catalysts.
Source: https://drive.google.com/file/d/1xY8oBqJLTrc55yfpHbZijK2uxmroM6YK/view?usp=drivesdk
Analysis:
Ayala Corporation is a Philippine conglomerate with core interests in banking, real estate, telecommunications, and power generation. Controlled by the Zobel de Ayala family, Ayala Corp. is one of the largest and oldest companies in the Philippines with a history that spans nearly two centuries. The company’s key assets include controlling stakes in a handful of public companies with dominant franchises, including a 52% stake in Ayala Land, a 42% stake in Bank of the Philippine Islands, a 31% stake in Globe Telecom, and a 58% stake in Acen Corp. Though less meaningful, the company has additional investments in fintech, healthcare, electric vehicles, logistics, retail, education, and semiconductors. Since peaking in 2017, Ayala Corp.’s shares have steadily de-rated, reaching lows not seen in over 25 years. During the quarter, the Fund initiated a position in Ayala Corp. at a multi-decade low valuation. Moreover, we would also note that the Philippine stock market itself is one of the cheapest in Asia at a time of record low foreign ownership. One of the largest drivers of value and potential upside in the shares of Ayala Corp. is the company’s stake in Ayala Land, the valuation of which is depressed due to a slowing housing market and investor caution concerning general oversupply in the middle market segment of Metro Manila condo market. That said, Ayala Land’s business has proven more resilient than peers given a growing income property portfolio, as well as better positioning across the residential development spectrum. While we do not know when conditions will improve, Ayala Corp. and its listed subsidiaries appear to be well financed, are poised to participate in the long-term growth of the Philippine economy and currently trade at extremely unusual valuation levels. Finally, we also see a number of ongoing and potential catalysts across various levels of the Ayala Corp., which seem likely to accrue to shareholders, including asset monetizations, share repurchases, and opportunistic investments. This view was further reinforced by a recent regulatory filing, in which Ayala Corp.’s board expanded its share repurchase authorization to include shares of listed subsidiaries.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Banco Santander is an attractive investment due to its strong geographic diversification, digital innovation, and disciplined cost control, which position it well for consistent returns despite macroeconomic uncertainties.
Source: https://drive.google.com/file/d/10r4rfI097Vv7ryZzgAZKfYhFk9V_cAuB/view?usp=drivesdk
Analysis:
We initiated a position in Banco Santander, a globally diversified banking group with strong franchises in Europe and Latin America. The investment thesis is built on the bank’s ability to deliver consistent returns through geographic diversification, digital innovation, and disciplined cost control. While macro uncertainty and regulatory pressures have weighed on European banks broadly, Santander’s exposure to faster-growing markets and its improving capital position support a more constructive outlook. We view the current valuation as attractive relative to its long-term earnings potential.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Becton Dickinson is a global medical technology provider poised for consistent mid-single-digit growth, with upcoming product launches and a strategic business separation expected to enhance its market position and profitability.
Source: https://drive.google.com/file/d/1ljPFWoD0Vcwk86zBvfa_nqI1N9j9QEmM/view?usp=drivesdk
Analysis:
Becton Dickinson (BDX) was purchased in the strategy this quarter. The company is a global medical technology provider 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, the pharmaceutical industry and the general public. 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, including syringes, pre-filled syringes, infusion pumps, and other products. While BDX has faced short-term headwinds, we believe there have been no long-term impairments to the company or its business model and, as an essential supplier of medical devices to hospitals, it should return to consistent MSD top-line growth over time. Opportunities exist across the portfolio for management to accelerate growth via new product launches. Upcoming launches include a next-generation Alaris infusion system (used for the delivery of IV fluids, medications, etc.) and a next generation Pyxis medication and supply management system. Management also expects double-digit topline growth from its leading Purewick catheter system, along with continued strong growth in pre-filled syringes which have benefitted from the growth in popularity of GLP-1 weight loss drugs. Furthermore, in February of 2025, BDX announced its intention to separate, through a sale or spin-off, its Biosciences and Diagnostic Solutions businesses within its BD Life Sciences segment. Products within this unit trail behind competitors such as Danaher, Boston Scientific, and Thermo Fisher Scientific. We believe a separation of this business 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, along with BDX’s position as a top-tier supplier with significant scale advantages over smaller competitors, should also result in operating margin expansion over time. Shares of the company are valued at 13 times forward earnings and the company holds an ESG rating of BBB from MSCI.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Bochu is China’s leading maker of control systems for lasers in automated manufacturing, boasting over 70% market share in “low power” laser controls and strong growth prospects due to its user-friendly, flexible, and high-performance software.
Source: https://drive.google.com/file/d/1ralux05CqnlTPeH_lGsqoS1xG9VoCkFM/view?usp=drivesdk
Analysis:
Bochu is such a company, China’s leading maker of control systems that guide lasers precisely as they cut through and weld materials during automated manufacturing processes. Bochu doesn’t make the actual lasers; it makes the software that guides them. Its focus on controls rather than laser hardware has been a good thing, especially as involution among laser makers and equipment integrators has lowered prices dramatically for its customers’ systems—making them more affordable for business users and helping demand—while pricing for its software has stayed remarkably stable. We bought a new holding in the company in the third quarter. Unlike offerings from its global competitors, Bochu’s systems are specifically made to be easy to use for less sophisticated small businesses such as makers of furniture and general industrial products; in China, which has the world’s largest manufacturing sector, Bochu has more than 70% market share of these “low power” laser controls and has become the industry standard. Its products operate in an open ecosystem, connecting to equipment made by a variety of vendors rather than being tied to closed-loop offerings from a single brand, which has become a key competitive advantage. Its systems have higher precision and speed than domestic peers. They also have more functionality and are better customized for applications across industries due to the company’s experience working with a wide range of equipment vendors and products. Its flexibility and ubiquity has led an entire generation of engineers in China to train on Bochu products, shortening the learning curve for users. Bochu’s offerings give it a marked advantage over its rivals—globally, Germany’s Beckoff, and in China, Weihong. Beckoff has been losing market share, and Weihong lags Bochu in technological specifications, functionality, and breadth of applications. We actually think the biggest rivalry over the next decade will be with integrated-equipment makers such as Han’s Laser, a former customer, that might increasingly integrate its own control systems into its products. Bochu has strong growth prospects as a shrinking labor force, more attention to worker safety, and growth in higher-precision manufacturing should continue to make industrial automation more attractive in China. As Chinese-run manufacturers expand their production globally to serve the needs of their customers, their automation needs outside of China should also lead to growth for Bochu.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Boise Cascade is a leading manufacturer and distributor of building materials in the U.S. with a strong financial position, poised for recovery and potential consolidation benefits despite recent profitability challenges.
Source: https://drive.google.com/file/d/1xY8oBqJLTrc55yfpHbZijK2uxmroM6YK/view?usp=drivesdk
Analysis:
Boise Cascade (“Boise”) is a leading manufacturer and distributor of building materials in the United States. The company operates through two segments, building materials distribution and wood products. On the distribution side, Boise distributes various products through the wholesale channel, including wood products, siding, composite decking, insulation, and roofing. On the wood products side, Boise primarily manufactures engineered wood products, such as laminated lumber veneer (LVL) and I-joists, and plywood. After a decade of respectable results, Boise’s profitability began to soften in 2024 while facing headwinds from slowing housing-related activity. While the near-term outlook remains challenged, Boise retains a strong financial position, which should provide the company with staying power to participate in an eventual recovery in the housing-related demand. Furthermore, the building material distribution industry has seen a substantial amount of consolidation activity in recent years, which could provide a backstop to valuation, as well as offer additional options for management to surface value transactionally. In summary, we perceive Boise to be inexpensive on a “what-is” basis with a good probability that, in the future, less depressed markets for U.S. homebuilding and renovation and remodeling could return the company to much higher levels of profitability. Meanwhile, a net cash balance sheet and a relative absence of liabilities offer the company a considerable amount of staying power. Finally, in our view, the attractiveness of Boise’s portfolios of distribution and manufacturing assets raises the probability that high levels of consolidation activity could one day involve Boise.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Carl Zeiss Meditec is positioned to benefit from long-term growth in the vision-care market despite short-term demand softness, with 51% of its sales from recurring revenue and a strong competitive advantage.
Source: https://drive.google.com/file/d/1cTpBek1D8GamVSVdSOAP8D1E0BrwwSsd/view?usp=drivesdk
Analysis:
At Carl Zeiss Meditec, recurring revenue reached a high of 51% of total company sales for the first nine months of the year, up from 43% a couple years ago. The German company specializes in intraocular lenses, which are implants used in cataract surgery; it also supplies high-precision microscopes for surgeons performing procedures on very small structures, such as those in the brain or eye. Demand for its products has been soft this year, particularly in China. Management also said last month that it expects the global macroeconomic environment “to remain volatile” and doesn’t foresee a rapid recovery in spending on equipment or elective procedures. Long term, however, demographic trends look favorable for the global vision-care market, and Carl Zeiss’s strong competitive advantages—its technological leadership, brand trust, and large global installed base—position it to be a key beneficiary of the growing access to eye surgeries. The stock looks attractively valued relative to that growth opportunity.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Champion Homes is a leading producer of affordable housing in North America, showing strong financial health and growth potential despite current market challenges.
Source: https://drive.google.com/file/d/1wkVlmBkR4pHglpJvoM-Ya-zRx5lYvQL3/view?usp=drivesdk
Analysis:
Alongside these developments, the Fund added to its position in Champion Homes (“Champion”). As outlined in greater detail in the Fund’s Q2 ‘25 shareholder letter, Champion is one of the leading producers of “affordable housing” in North America, having delivered more than 26,000 manufactured (and modular) homes last year at an average price point of less than $100,000 per unit. The company also seems distinct, in Fund Management’s opinion, with a super-strong financial position, significant excess production capacity, as well as prospects to capture incremental economics by further integrating ancillary activities (e.g., mortgage financing and captive retailing). Despite these attributes, industry orders have been mixed more recently and have left Champion’s common stock near five-year lows on most fundamental metrics. Such a level seems unwarranted, in our view, especially for a leading platform in a consolidated (and essential) industry. It is also a level that does not seem to factor in much probability for a recovery in industry volumes—which could be propelled by regulatory reform (i.e., the removal of HUD’s chassis requirements) and incremental support in the lending markets (i.e., Fannie Mae extending conventional loans to “single-wides”).
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Equitable Holdings, Inc. is a leading U.S. financial services company focused on retirement and wealth management, generating strong cash flow for share repurchases and dividends, while recently enhancing its capital structure and risk profile through a reinsurance transaction.
Source: https://drive.google.com/file/d/1jRWChJPVliV51lHX-bjxgQfZ_AAJKXLr/view?usp=drivesdk
Analysis:
Equitable Holdings, Inc. (EQH) – EQH a leading U.S. financial services company helping clients achieve retirement and wealth goals through three core businesses: Equitable (retirement and protection strategies), AllianceBernstein (global asset management), and Equitable Advisors (financial and wealth planning). Together, these franchises manage over $1 trillion in client assets. EQH operates with an asset-light model that generates strong free cash flow, which it uses to repurchase shares and grow dividends. Over the past five years, the share count has declined about 8% annually, while the dividend has compounded at a 7% growth rate, currently yielding 2.1%. A recent reinsurance transaction with Venerable released nearly $2 billion of excess capital to the holding company, reducing risk while validating reserves. As EQH continues shifting toward higher-quality, fee-based retirement and asset management businesses, we believe the market will reward it with a higher valuation multiple, reflecting its stronger growth profile, enhanced capital return, and lower risk structure.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
H2O America is investing in growth by expanding its operations in fast-growing regions of Texas, enhancing its valuation after a decade and improving its long-term growth outlook.
Source: https://drive.google.com/file/d/135yZ-zExY6pV1ruW6JfihH50nwJYiKsT/view?usp=drivesdk
Analysis:
H2O America – The strategy added to US water utility H2O after valuation reached its most attractive level in a decade, despite recently improving its long-term growth outlook by expanding its presence in fast-growing regions in Texas. Across all its four operational states, the company will continue to invest in increasing its rate base at a mid-high single digit rate for years to come.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Kazatomprom is a leading uranium producer in Kazakhstan that stands to gain from the AI boom by supplying the growing demand for nuclear energy needed to power AI data centers.
Source: https://drive.google.com/file/d/1Ngp0Vl60WpfK_Smnc24dXnQje7L5d88o/view?usp=drivesdk
Analysis:
This quarter, we found a company in frontier markets that stands to benefit from the AI boom. It’s called Kazatomprom; it’s in the faraway, landlocked nation of Kazakhstan, and it mines and sells uranium. How is a uranium miner an AI company? Because the energy needed to power AI data centers is staggering. A recent MIT study estimated that training OpenAI’s GPT-4 cost more than US$100 million and consumed 50 gigawatt-hours of energy, enough to power San Francisco for three days. That was just for training. AI-specific data centers in the US are estimated to have used between 53 and 76 terawatt-hours of electricity in 2024. On the high end, this is enough to power more than 7.2 million US homes for a year. By 2028, the researchers estimate that the power devoted to AI-specific purposes will rise to between 165 and 326 terawatt-hours annually. That’s more than all the electricity currently used by US data centers for all purposes and enough to power 22% of US households for a year. As much electricity as that is, generating it isn’t necessarily the problem. The problem is the emissions. That 2028 estimate above would generate the same carbon emissions as driving more than 300 billion miles. The data-center operators therefore need to find clean sources of energy. Wind and solar are options, but their intermittency is a problem. That is leading a lot of these companies to explore nuclear. Like wind and solar, nuclear is a carbon-free power source, but unlike wind and solar, it can be relied upon to generate electricity without interruptions. For that reason, Meta, Amazon, Alphabet, and others have all recently announced plans to invest in nuclear energy. That is where Kazatomprom comes in. Demand for uranium is rising as more nuclear plants are planned, restarted, or built to power AI hardware. Kazakhstan holds the world’s largest supply of uranium, accounting for about 40% of global supply, and Kazatomprom is the country’s largest uranium producer. With roughly 25% share of global production, Kazatomprom’s scale makes it the lowest cost producer in the world, a key competitive advantage. With the lowest costs and substantial reserves, the company is better able to withstand price volatility and cyclical downturns than other uranium miners. This cost advantage reflects the quality characteristics we seek in mining companies at Harding Loevner. We aim to own the lowest cost miner, one that remains profitable even amid very low product prices that would push its peers out of business. Kazatomprom’s low costs stem from its priority access to Kazakhstan’s rich uranium deposits, economies of scale, and the use of the in-situ recovery (ISR) method of production. ISR offers lower development and production costs, shorter construction times, reduced environmental impact, and lower risks to health and safety. The company generates strong free cash flow and maintains an investment grade credit rating. With US$1 billion on its balance sheet, management has the flexibility to expand its mining capacity and return capital to shareholders. We bought shares of Kazatomprom for the portfolio this quarter at a very attractive valuation relative to its strong growth outlook. Favorable sentiment and policy towards nuclear energy will likely translate into new reactor projects and licensed designs. Meanwhile, uranium markets are already expected to enter a multiyear deficit due to demand from existing utility contracts over the next five years. Hence, we expect to see rising returns from a combination of higher contract pricing and increased production volumes over the next decade. The purchase also reduces the portfolio’s relative underweight position in the energy sector.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
MakeMyTrip is a leading online travel agency in India, dominating the market with a strong competitive advantage due to its extensive service offerings and scale, which position it well for significant growth in the coming years.
Source: https://drive.google.com/file/d/1ralux05CqnlTPeH_lGsqoS1xG9VoCkFM/view?usp=drivesdk
Analysis:
Online travel agencies (OTAs) offer very different products than laser controls, but have proven to be one of the most profitable and cash-generative businesses when operated at scale. Last quarter, we bought a new holding in MakeMyTrip, which dominates the Indian market through its services for flight tickets, hotel bookings and packages, and bus tickets. MakeMyTrip’s key competitive advantage is its scale and reach: no other OTA in India offers as many options for transportation, lodging, and entertainment on one platform. It serves more than 80 million users and commands around 50% market share of the overall online travel market in India. This scale provides network effects where partners see MakeMyTrip as a platform to reach most of their potential customers while travelers see the platform as the site with the greatest choice. The company’s deep reach into tier 2-4 cities in India that are hubs for pilgrimages and local tourism, especially with its accommodation tie-ups in these smaller cities where global OTAs don’t have much presence, is an added source of competitive advantage. Growth prospects for the company look very good over the next 10 years. We expect that more than half of Indian travelers will be using OTAs by 2030, up from about 40% currently, leading to a significant increase in the total addressable market. The online share of the more profitable hotels-booking segment is currently even lower at around 11% in India and we expect this share to double in the next 10 years. MakeMyTrip’s profit margins should expand, supported by faster growth in its higher-margin hotels business as well as its outbound travel business.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Medistim is seeing early signs of recovery in equipment sales linked to surgical procedures, with investments aimed at expanding its addressable market and improving its sales and service network.
Source: https://drive.google.com/file/d/1a0lB1AJG1UqoOwj-Lmrlgr8EcwtYq127/view?usp=drivesdk
Analysis:
While recurring revenues have cushioned the downside for our Health Care holdings, our thesis is that equipment sales will eventually normalize in end markets where we see long-term structural growth. Medistim, whose equipment is used to monitor blood flow during open-heart and vascular surgeries, operates in a market that is already showing early signs of recovery. The trajectory of the company’s earnings and sales, which are linked to the number of procedures in which its equipment is used, follows a pattern familiar to many Health Care businesses in recent years: expectations grew rapidly during the pandemic before dropping in 2022, as macroeconomic challenges reverberated throughout the sector. This year, though, utilization and orders of its equipment have improved. The underlying need for its equipment also isn’t going away. Rather, Medistim’s main challenge is growing its addressable market. The company is investing in a sales and service network and reducing its reliance on third-party suppliers, moves that we think make sense.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Mercedes-Benz Group is strategically repositioning itself towards higher luxury segments and electrification to enhance profitability, supported by a strong balance sheet and a sustainable dividend policy.
Source: https://drive.google.com/file/d/1SMfg0tdgfUKsalbZPd26eD16-Gbb6IWi/view?usp=drivesdk
Analysis:
Mercedes-Benz Group (MBGYY) was purchased in the Value strategy during the third quarter. Mercedes-Benz is one of the world’s largest premium automakers, designing and manufacturing luxury cars and vans while offering financing, leasing, fleet management and mobility services through Mercedes-Benz Mobility. Formerly known as the Daimler Group, the company spun off Daimler Trucks in 2021, concentrating its operations around the Mercedes-Benz luxury brand and focusing on positioning the brand for an all-electric future. The current strategy aims to position the brand higher up the luxury scale by: (1) reducing the company’s product offering in the entry luxury category (A-Class, B-Class), (2) strengthening its position in the core luxury category (C-Class, E-Class, EQE, EQE SUV) and (3) expanding the product line-up in the top-end luxury category (S-Class, G-Class, EQS, EQS SUV, Mercedes-AMG, Mercedes-Maybach). In doing so, management is repositioning the company for structurally higher profitability via a combination of an absolute reduction of fixed costs and a significant improvement in pricing discipline. While the long-term direction toward electrification is intact, the interim milestones have been recalibrated to reflect market conditions, with the former ambition of 50% BEV by 2025 and all-electric by 2030 giving way to a plan that envisions up to roughly 50% electrified (BEV plus PHEV) sales by 2030. To achieve these operational and financial targets, the company is simplifying its manufacturing platforms, investing strategically in internal and external software development capabilities and expanding its presence in the direct-to-consumer channel across key European markets. With a strong balance sheet and a historically healthy track record of credit quality in its financing book, we believe that the company’s payout policy allows for steadily rising dividends over the long term, complemented by opportunistic share buyback programs, including the latest announcement for €5 billion of share repurchases, that will reinforce its capital allocation strategy. We believe that the company’s focus on prioritizing prices over volumes, sizable order backlog and robust luxury demand will sustain the company’s operating margins through a range of macroeconomic scenarios. Shares of the company are valued at 7.8 times forward earnings and offer a 5.5% dividend yield.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Midea Group is a leading Chinese appliance maker poised for growth through domestic trade-in programs and expanding overseas and technology segments.
Source: https://drive.google.com/file/d/18iQuKzuAh6HR3EIOH0w_3ZVxRDSPIG4i/view?usp=drivesdk
Analysis:
We also initiated a position in Midea Group (China, Consumer Discretionary), one of the largest appliance makers in China with leadership positions across key categories such as air conditioners, washing machines, refrigerators, and lifestyle appliances benefiting from the domestic consumer goods trade-in program, with further upside from its overseas home appliance business and growing To-B segments, including Intelligent Building Technology and Robotics and Automation.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Mirion Technologies is a leading manufacturer of radiation detection products for nuclear power and medical applications, serving over 95% of global nuclear reactors and 80% of cancer centers, recently enhancing its portfolio through the acquisition of Paragon Energy Solutions.
Source: https://drive.google.com/file/d/1O06LGMA7Yt2rwl00pEZrz9myVt1pWKJf/view?usp=drivesdk
Analysis:
Mirion Technologies, which manufactures radiation detection, measurement, and monitoring products serving nuclear power and medical applications. Its nuclear power solutions are used in over 95% of the world’s nuclear reactors while its medical products have a presence in 80% of the world’s cancer centers. The recent acquisition of Paragon Energy Solutions provides Mirion with additional safety-related offerings for nuclear power plants and provides Mirion with greater relevance to the small modular reactor (SMR) market via design wins with well-capitalized SMR manufacturers.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
NextEra Energy is a Florida-based regulated utility and renewables company benefiting from strong economic growth, a supportive regulatory environment, and a substantial portfolio of solar and wind assets, with an average valuation in the Utilities sector.
Source: https://drive.google.com/file/d/1SMfg0tdgfUKsalbZPd26eD16-Gbb6IWi/view?usp=drivesdk
Analysis:
NextEra Energy (NEE) was purchased in the Value Equity strategy. NextEra is a Florida-based regulated utility (70% of revenue) and renewables company (30% of revenue). The company’s rate-regulated utility is located in regions with strong economic and population growth with a supportive regulator that has approved above-average ROE levels and strong rate base growth. Its portfolio of solar and wind assets has seen considerable growth through long-term contracted assets and the drive toward clean energy generation. Despite the roll-back of federal renewable subsidiaries, the cost of solar and wind generation has fallen substantially and the company is capitalizing on the rapid growth of generation and transmission demand. The valuation of the stock is currently at the Utilities’ sector average at 19x forward earnings with a 2.8% dividend yield.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Old Dominion Freight Line, Inc. is well-positioned to outperform in a recovering industrial economy despite current declining volume trends and challenges in the trucking sector.
Source: https://drive.google.com/file/d/1jRWChJPVliV51lHX-bjxgQfZ_AAJKXLr/view?usp=drivesdk
Analysis:
Old Dominion Freight Line, Inc. (ODFL) – Trucking stocks in general, and ODFL specifically, have had challenging performance during the quarter due to the lingering softness in the industrial economy. ODFL continues to report declining volume trends as the “boom and bust” nature of post-COVID normalization is playing out. We believe that the industry is bumping along the bottom, and that even the slightest strengthening in trends will result in outperformance for the group and for ODFL. We like ODFL’s strong position in the industry, the superior returns that its business model generates, and management’s adeptness at capital allocation.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Quaker Houghton is a resilient leader in industrial process fluids and specialty chemicals with strong pricing power and growth potential, well-positioned to benefit from global manufacturing recovery and sustainability trends.
Source: https://drive.google.com/file/d/1nDDnTQ5NEpQ6LGMMH9meitokvU5rZ7Xj/view?usp=drivesdk
Analysis:
Quaker Houghton (KWR) is a global leader in industrial process fluids, lubricants, and specialty chemicals serving the metalworking, steel, automotive, aerospace, and general manufacturing industries. The company provides mission-critical products that improve process efficiency, extend equipment life, and support sustainability initiatives across diverse industrial supply chains. Quaker Houghton has built a resilient business model characterized by high customer retention, strong pricing power, and disciplined execution through economic cycles. Its management team continues to navigate raw material volatility effectively while expanding margins through operational efficiencies and innovation-driven product differentiation. The company’s exposure to industrial production, infrastructure investment, and reshoring trends should position it to benefit from a sustained recovery in global manufacturing. Continued penetration in international markets, particularly in emerging economies, alongside prudent capital allocation and ongoing sustainability initiatives, supports durable earnings growth and attractive long-term compounding potential. With a strong balance sheet, solid free cash flow generation, and expanding strategic partnerships, Quaker Houghton represents a high-quality franchise in a position to outperform through the next phase of the cycle.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Rogers Corporation is a global manufacturer of advanced electronic and elastomeric material solutions with a strong intellectual property portfolio, facing challenges in growth and market adaptation but showing potential for strategic improvements and profitability.
Source: https://drive.google.com/file/d/1xY8oBqJLTrc55yfpHbZijK2uxmroM6YK/view?usp=drivesdk
Analysis:
Rogers Corporation (“Rogers”), headquartered in Chandler, Arizona, manufactures a portfolio of electronic and materials technology solutions for a wide range of industrial applications. Broadly speaking, the company operates in two segments, Advanced Electronic Solutions, which designs and manufactures substrates, interconnects and circuit materials, and Elastomeric Material Solutions, which provides urethane and silicon materials solutions to its customers. The company operates globally and serves customers such as electric vehicle manufacturers, aerospace companies, clean energy companies, portable electronics, and a wide range of industrial customers. It is our view that Rogers has a valuable portfolio of intellectual property and technical expertise that it utilizes to create tailored industrial solutions for its customers. It also appears that Rogers serves a number of attractive and growing end markets. We believe this perception was shared by Dupont when the company attempted to purchase Rogers in 2021 for more than three times its current share price. However, since that period the company has struggled to grow, its manufacturing footprint has not adjusted to geographic changes in its end markets and, it appears that the company would be well served to foster some cultural changes to enhance its competitive spirit. Further, our team’s initial research on the company began more than a year ago though it had not resulted in any activity until recently. During the past year, however, the company’s share price continued to weaken meaningfully, even while the company has been increasingly influenced by a long-term activist investor, its board has seen a substantial reconstitution, and more recently its CEO has been replaced by the new board. Recent announcements by Rogers management reflect a new sense of urgency in adjusting its manufacturing footprint and a substantial opportunity for cost savings and margin improvement. It is also notable that the company remains quite profitable, and its balance sheet holds a significant net cash position offering resources and time to implement strategic improvements and face any future resource conversion opportunity from a position of financial strength.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Select Water Solutions is expected to more than double as its capex program winds down, potentially leading to significant free cash flow generation.
Source: https://drive.google.com/file/d/135yZ-zExY6pV1ruW6JfihH50nwJYiKsT/view?usp=drivesdk
Analysis:
Select Water Solutions – The strategy added to water treatment provider Select following weakness after its 2nd quarter earnings report. We think the stock has the potential to more than double as its capex program should begin to wind-down in coming years with the possibility to drive significant free cash flow generation.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Siemens is transforming into a Compounder focused on electrification and digitalization, with strong growth in its Smart Infrastructure division and a positive outlook for its automation and software sectors.
Source: https://drive.google.com/file/d/1_NhBP0YPGJ9ILf0tg4mTQR3tDYaEhrJk/view?usp=drivesdk
Analysis:
Transactions during the quarter included the purchase of Siemens. Through a series of divestitures and spin-offs, Siemens has transformed from a ten-division mega conglomerate to a Compounder focussed on electrification and digitalisation. Its Smart Infrastructure division has delivered strong organic growth as the “electrification of everything” supports structural demand from grid hardening to data centre power infrastructure. Cyclical support from German fiscal spending should boost the recovery in its automation business, while recent software acquisitions and its SaaS transition pave the way for sustained margin improvement.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Smurfit WestRock is well-positioned for growth as a global leader in paper-based packaging, benefiting from synergies post-merger, operational improvements, and rising demand for sustainable solutions in e-commerce.
Source: https://drive.google.com/file/d/15_NDt4VSKcmSgoeul_gdo1aGOnCrBaLI/view?usp=drivesdk
Analysis:
Smurfit WestRock (SW) was purchased in the EEI strategy during the quarter. The company is well positioned as a global leader in paper-based packaging following the merger of Smurfit Kappa and WestRock in 2024. The combined company benefits from scale across North America, Europe, and Latin America, which provides both market presence and cost advantages. A central catalyst for the investment case is the ongoing integration of the two businesses, with management already demonstrating early progress on synergies that should drive efficiency and earnings growth. Another important driver is the opportunity for margin expansion, as Smurfit WestRock seeks to close the gap with US peers through better pricing discipline and operational improvements. The shift to a regional structure is also a catalyst, since it gives management clearer accountability and the ability to tailor strategies to local demand and pricing conditions. In addition, the company is well positioned to benefit from the secular growth in e-commerce, which drives box demand, and from rising consumer and regulatory interest in sustainable packaging solutions. A further catalyst is the potential for commercial improvements beyond cost synergies, as the business leverages its scale and customer relationships to enhance pricing power and mix. Investor sentiment could improve as Smurfit WestRock demonstrates consistent execution on these initiatives, reinforcing confidence in management’s ability to deliver. Over time, the narrative should shift from integration to growth, as the company capitalizes on its global footprint and innovation pipeline. Smurfit WestRock also has the potential to generate stronger cash flows as capex moderates, opening the door for increased shareholder returns. A rerating of the shares is likely if the company narrows its valuation gap to peers while delivering on execution milestones.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Sysmex is a high-quality global leader in diagnostic analyzers with 78% recurring sales, now attractively valued due to recent share-price weakness stemming from short-term growth challenges.
Source: https://drive.google.com/file/d/1cTpBek1D8GamVSVdSOAP8D1E0BrwwSsd/view?usp=drivesdk
Analysis:
Take Sysmex, which is a global leader in its niche and has 78% recurring sales. The Japanese company supplies diagnostic analyzers and the reagents that allow these devices to perform blood analysis, urinalysis, and other testing. Sysmex’s recurring sales come from its reagents and from servicing its installed devices. Recent share-price weakness, mostly related to short-term growth challenges, including the transition to a new supply-chain and order-processing system, as well as policies in China that pressured health-care spending, gave us an opportunity to add this high-quality company at an attractive valuation.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
The Trade Desk is a digital advertising platform poised for growth despite competitive challenges, benefiting from the shift in ad spending from traditional TV to digital channels.
Source: https://drive.google.com/file/d/1s2RBcSYhvOtjvtF_LNW0Qkhp09CXO8YT/view?usp=drivesdk
Analysis:
Now take The Trade Desk. Companies use its digital platform to purchase advertising space on websites, streaming-TV apps, digital billboards, and more. The company projected 14% revenue growth for the third quarter, modestly below the market’s expectations. Even though 14% is still a robust growth rate by most standards, the muted forecast caused the stock to fall sharply. Some of the concerns are valid. The Trade Desk faces rising competition from Amazon.com, and there’s the possibility that banner ads on the open internet are eventually overtaken by AI chatbots, which could increasingly become the gatekeepers to websites and lace ads into their own text responses. However, we think the company is well positioned to benefit from the secular growth in digital advertising. Its platform is differentiated, not just in the underlying technology, but also because it is independent, unlike large media companies such as Alphabet or Meta Platforms, which funnel ad dollars to their own apps and services. The Trade Desk’s reach is also strong with streaming-TV services, and so as more viewers cut the cord, the roughly US$150 billion that advertisers spend on traditional TV will likely continue making its way into The Trade Desk’s coffers.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
UniFirst Corporation is positioned for improved margins and share price benefits due to recent technological upgrades enhancing operations and customer service.
Source: https://drive.google.com/file/d/1O06LGMA7Yt2rwl00pEZrz9myVt1pWKJf/view?usp=drivesdk
Analysis:
UniFirst Corporation, which supplies a range of work clothing, uniforms, protective apparel, and facility service products. Previously, UniFirst had less efficient operations than competitors, which led to relative underperformance. Over the last few years, UniFirst has made significant technological upgrades, enhancing both its operations and customer service. Those strategic improvements should improve its margins and benefit its share price.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Unite Group plc is a leading U.K. REIT specializing in purpose-built student housing, currently expanding its portfolio despite recent challenges in the market.
Source: https://drive.google.com/file/d/1wkVlmBkR4pHglpJvoM-Ya-zRx5lYvQL3/view?usp=drivesdk
Analysis:
As a result of these expanding price-to-value discrepancies, the Fund has recently increased its allocation to the U.K., primarily by adding to the common stock of the Unite Group plc (“Unite”)—a U.K.-based Real Estate Investment Trust (“REIT”) that is the leading owner of purpose-built student housing in the country. Well-recognized by U.K. students, Unite’s “student accommodation” portfolio is now comprised of more than 150 properties and 65,000 beds, which are more than 95% leased and centered on the U.K.’s top institutions (i.e., Russell Group universities). Not only that, but the company has modest levels of debt, as well as a long track record of engaging with universities in value-enhancing developments and recycling capital with institutional partners. The past year has been one of transition for U.K. student housing though, due to evolving visa policies and more elevated levels of new supply. As a result, Unite’s “lease up” for the current year fell below expectations. Notably, the company also caught the capital markets “off guard” when making a bid for its smaller peer Empiric Student Property, a REIT that controls a portfolio of 75 properties that tend to be “off campus” and “directly let” to graduate students. In combination, these developments have led to a sharp “de-rating” in Unite’s stock, as well as a 15-year low price-to-book multiple and implied cap rate of 7.5%--a level that is likely to attract strategic interest if it persists over the medium-term, in Fund Management’s opinion.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
UnitedHealth Group is a leading diversified managed care organization positioned for growth and margin recovery following a turnaround under new leadership, with a strong focus on operational discipline and cost reduction initiatives.
Source: https://drive.google.com/file/d/1SMfg0tdgfUKsalbZPd26eD16-Gbb6IWi/view?usp=drivesdk
Analysis:
UnitedHealth Group (UNH) was purchased in the Value strategy during the quarter. UNH is the largest diversified managed care organization in the United States, operating a leading health insurer (UnitedHealthcare) and a powerful healthcare services platform (Optum). Its vertically integrated model enables UnitedHealth to combine insurance, pharmacy benefit management, data analytics, and provider services, allowing it to better coordinate care, manage medical cost trends, and capture synergies across its businesses. This scale and diversification provide UnitedHealth with a durable cost-advantage and network-effects moat anchored in local scale, switching costs in Optum Rx, and Optum Insight’s leading position in data and technology solutions. Under former CEO Andrew Witty, the company pursued aggressive expansion into new lines of business without fully accounting for the associated risks and acquired numerous companies that were not successfully integrated. In addition, its ambitious membership growth strategy drove higher-than-expected utilization, leading to higher medical costs and a sharp decline in earnings. The company is undergoing a multi-year turnaround under new leadership, pairing cultural reform with operational discipline. Management, led by returning CEO Stephen Hemsley, has reset expectations by guiding to at least $16 in adjusted EPS for 2025, providing a new baseline from which earnings growth is expected to resume in 2026. Hemsley is widely regarded as a strong strategic leader and operator who has emphasized restoring the performance culture and discipline that characterized the company during his tenure. Strategic actions include repricing for higher medical trend, exiting plans serving over 600K Medicare Advantage members, narrowing networks, and taking a more conservative approach to ACA participation. Optum Health has reduced its 2025 new patient growth target by more than half to 300K to focus on mature markets and expects to deliver nearly $1 billion of cost reductions in 2026. Longer-term, UnitedHealth has multiple levers for growth. Medicare Advantage penetration continues to expand, and we believe UnitedHealth is well positioned to benefit given its national scale and leading Stars performance, with management recently indicating about 78% of MA members are in 4+ star plans – a key driver of bonus payments. Optum Health’s value-based care margins are expected to remain near breakeven in 2026 as the final year of V28 phase-in is absorbed, then advance toward management’s 6–8% long-term target as newer cohorts mature. Optum Insight and Optum Rx provide additional recurring, fee-based revenue streams that diversify earnings and help dampen volatility. Management’s cost reduction initiatives, repricing actions, and benefit re-designs are expected to close the gap between cost trends and premium growth, restoring margin credibility and putting the company on track toward mid-to-high single-digit earnings growth from 2026 onward. UnitedHealth trades at an attractive valuation of ~16x 2027 earnings with a 2.6% dividend yield and a three-year annual dividend growth rate of approximately 12%. In addition, senior management has recently engaged in open market purchases of stock, a vote of confidence in the turnaround of the company. With a clean earnings base, improved operating discipline, and multiple levers for growth and margin recovery, we view UnitedHealth as a high-quality compounder with the potential for accelerating EPS growth and multiple expansion over the next several years as its turnaround and sector recovery unfold.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Vinci is a prominent global operator of concessions and a provider of energy and construction services in Europe, with strong growth prospects in airports and energy services contributing to its attractive valuation and dividend yield.
Source: https://drive.google.com/file/d/1vxBke-2fb8LlTn8XvrE1a0c2tpGaBkp7/view?usp=drivesdk
Analysis:
Vinci (France, Industrials) – Vinci is a major global operator of concessions and a provider of energy and construction services primarily in Europe. In its concessions division, Vinci operates a network of motorways in France spanning over 4,000 kilometers that provides predictable cash flow while being indexed to traffic growth and inflation. The company also operates 72 airports serving 318 million passengers in 14 countries including the United Kingdom, Portugal, Mexico, France, Dominican Republic, Brazil and Japan. We believe that airports are an attractive long-term asset class given good prospects for passenger volume growth along with the ability to generate robust returns in non-regulated areas such as retail, food courts and parking lots. In its Energy Services division, Vinci benefits from several long-term megatrends such as the modernization of energy generation and distribution infrastructure, the increased desire for energy efficiency in factories and buildings and the build-out of data centers and telecommunication networks. This division primarily serves repeat customers with small contract sizes via Vinci’s specially trained employees who are in short supply across Europe. Over the long-term we expect the Energy Services division to grow revenues by 7-9% annually aided in part by smaller acquisitions, while growth in the intermediate term may be even higher aided by German infrastructure-focused fiscal stimulus. Lastly, in its Construction division, Vinci builds roads and civil engineers projects and buildings. While this division is not as profitable as the rest of the company, it provides Vinci with a competitive advantage in bidding for concession projects which often require some amount of construction. We believe that Vinci, which once primarily operated French toll roads, now owns several much more attractive businesses such as Airports and Energy Services and that market participants have been slow to recognize the extent of this change. Shares of Vinci are valued at 13.3 times forward earnings and currently offer a 3.9% dividend yield.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Disney is a high-quality EPS compounder with strong growth potential from its DTC segment and successful Experiences business.
Source: https://drive.google.com/file/d/1Txx-4SLTjvXHhDUt4i_7OKEo5DUV8BK_/view?usp=drivesdk
Analysis:
We continue to view Disney as a high-quality EPS compounder with multiple levers for sustained growth. The company’s DTC segment delivered meaningful upside in EBIT, subscriber additions, and ARPU, underscoring operating leverage and the benefits of integrating Disney+ and Hulu into a unified platform to improve churn, engagement, and monetization. The ESPN DTC launch on August 21 ($29.99/month) alongside new content partnerships, including expanded NFL programming, WWE live events, and NFL Fantasy integration, further strengthens the Sports segment’s long-term earnings trajectory. Meanwhile, the Experiences business continues to perform well, with record per person spending, higher hotel occupancy, and strong cruise trends.
Check here for the latest results, quarterly call and analysts’ estimates.
Thesis:
Warrior Met Coal is on track with its Blue Creek mine project, which has begun production ahead of schedule and is expected to significantly boost production volumes and shareholder returns by 2026.
Source: https://drive.google.com/file/d/1xY8oBqJLTrc55yfpHbZijK2uxmroM6YK/view?usp=drivesdk
Analysis:
Warrior Met Coal, which currently operates two metallurgical coal mines and has been constructing a third mine named Blue Creek, was also a top contributor during the quarter. To date, the Blue Creek project has been managed on budget and slightly ahead of schedule. Blue Creek recently began production and is expected to reach full run-rate production in the first half of 2026. At full production, Blue Creek will bring about a major step change in Warrior’s production volumes and operate at world-class production costs. Going forward, the looming end of significant capital spending on the construction of Blue Creek should enable Warrior to return to its long-running approach of returning much of its cash profits to shareholders, particularly given the pristine state of its balance sheet.
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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