Stock Analysis Compilation

HFBestIdeas.com is now live. It’s free (for now), you just need to create an account. Two main features: 1️⃣ Access to 1,000+ quarterly fund letters 2️⃣ Around 500 stock pitches extracted from fund letters each quarter

Crossroads Capital's latest quarterly letter — key takeaways: • **Market digestion, not breakdown** — Q4 seen as consolidation after 2025 rerating, emphasizing bottom-up conviction and resistance to fads. • **Decelerating outperformance of mega-cap “Magnificent 7”** — this shift may enhance small-cap/value breadth into 2026. • Continued net buyers through 2025, keeping top performers as high-conviction holdings; meaningful sale of Calumet (CLMT) due to governance/financing concerns. • **Nintendo's Switch 2 adoption** is tracking faster than previous cycles, driven by software and recurring monetization, with market narratives on memory-cost and hardware-margin seen as transient. • AST SpaceMobile (ASTS) has transitioned from R&D to execution, with critical near-term KPIs around BB7 and validated technology, de-risking its outlook. • Nebius (NBIS) repositioned as an AI-capacity platform with substantial contracts (Microsoft, Meta) and a significant power buildout target, facing operational risks related to capital access. • FTAI Aviation evolving into a capital-light MRO/exchange platform, with milestones on perpetual power agreements and FAA approvals. • Emphasis on a **disciplined, fundamentals-first value orientation**, focusing on high-quality growth at discounts and skepticism towards headline-driven narratives. Read the full letter → hfbestideas.com/letters?open=z…

Voss Value Fund's latest quarterly letter — key takeaways: • **The AI/agentic-AI narrative has led to extreme market volatility and increased uncertainty for software firms, but we anticipate the outcome will be more balanced than both bullish and bearish extremes.** • Our portfolio remains high conviction and concentrated, with total gross exposure at 158.7% and delta-adjusted net long at 78.8%. The top 10 longs represent 76.4% of the portfolio and the top 10 shorts are at -27.3%. • We've experienced a significant performance gap recently due to our overweight in software, which hindered our ability to capitalize on the leadership shift towards small-cap value sectors. • The market is mistakenly categorizing software companies as a single vulnerable entity in the face of AI disruption; we believe established incumbents with expertise and robust data infrastructure will endure and gain market share. • Academic research indicates that while LLMs excel in synthetic environments, their real-world performance is lacking; meaningful AI integration in corporations remains limited, particularly among software firms who are the swiftest adopters. • Our largest long position is in Flywire — a global payments platform with high switching costs that trades at a significant EBITDA multiple discount compared to peers. • We are bullish on Cellebrite, which benefits from a hardware-software moat, an exploit library, and new AI products like Guardian Investigate, expanding its total addressable market and generating strong cash flow. • PAR Technology stands out as a niche POS leader securing Tier-1 mandates, capitalizing on incumbency and AI-driven product innovations. • We've added Choice Hotels as a core long, focusing on their asset-light franchising strategy towards extended stays and international direct franchising, with management poised to unlock ~$700M in capital and optimistic about its undervalued status amidst potential catalysts. • Despite facing recent setbacks, we remain committed to a value-centered, special situations strategy, emphasizing the importance of concentrated, research-based positions over market timing. Read the full letter → hfbestideas.com/letters?open=o…

35 pitches found in hedge fund reports this week : 🔹 Advanced Micro Devices (AMD US) by Aristotle Focus Growth 🔹 APi Group Corporation (APG US) by Aristotle Core Equity 🔹 Banco Santander SA (SAN SM) by Ariel Global 🔹 BranchOut Food Inc. (BOF US) by Fairlight Capital 🔹 Builders FirstSource, Inc. (BLDR US) by Heartland Value Plus Fund 🔹 Constellation Software, Inc. (CSU CN) by Sequoia Fund 🔹 Deutsche Wohnen SE (DWNI GY) by Ennismore European Smaller Companies Fund 🔹 DexCom (DXCM US) by Aristotle Large Cap Growth 🔹 EssilorLuxottica (EL FP) by Sands Capital International Growth 🔹 FTAI Aviation Ltd. (FTAI US) by Tourlite Capital 🔹 Gentex Corporation (GNTX US) by Ariel Mid Cap Value 🔹 HOYA Corporation (7741 JP) by Platinium Asset Management 🔹 Ingersoll Rand Inc. (IR US) by Parnassus Mid Cap Fund 🔹 KKR & Co. Inc. (KKR US) by Acatis 🔹 Kubota Corporation (6326 JP) by Aristotle International Equity 🔹 Lowe's Companies, Inc. (LOW US) by Aristotle Global Equity 🔹 MACOM Technology Solutions (MTSI US) by Aristotle Small Mid Cap Equity 🔹 Marvell Technology, Inc. (MRVL US) by Alpha Wealth Funds 🔹 Microsoft Corporation (MSFT US) by Ironvine Capital Partners 🔹 Performance Food Group Company (PFGC US) by Aristotle Core Equity 🔹 Pool Corporation (POOL US) by Schafer Cullen Water Impact Strategy 🔹 Primo Brands (PRMB US) by Aristotle Small Cap Equity 🔹 RELX PLC (REL LN) by Aoris 🔹 Rockwell Automation, Inc. (ROK US) by Alpha Wealth Funds 🔹 Samsung Electronics (005930 KS) by Harding Loevner Emerging Markets Equity 🔹 Shelly Group SE (SLYG GY) by Fairlight Capital 🔹 Spirax Group plc (SPX LN) by Ennismore Global Smaller Companies Fund 🔹 Thermador Groupe SA (THEP FP) by Ennismore European Smaller Companies Fund 🔹 Union Pacific Corporation (UNP US) by Schafer Cullen Enhanced Equity Income 🔹 Universal Music Group N.V. (UMG NA) by Sequoia Fund 🔹 Valeura Energy (VLE CN) by Focus Capital Management 🔹 Vetoquinol SA (VETO FP) by Ennismore European Smaller Companies Fund 🔹 Weichai Power Co., Ltd. (2338 HK) by Schafer Cullen Emerging Markets High Dividend SMA 🔹 Wolverine World Wide Inc. (WWW US) by Platinium Asset Management 🔹 Zegona Communications plc. (ZEG LN) by Alluvial Capital

Warden Capital's latest quarterly letter — key takeaways: • **Defensive positioning for 2025**: A sizable short book and value-biased long holdings led to poor performance relative to risk assets, but this was intentional to hedge against a potential AI-driven market correction. • **Macro outlook**: The manager perceives a soft economy with slowing job growth, rising unemployment, and weak real estate, anticipating a significant slowdown in the AI investment boom by 2026–2027. • **Skepticism on AI sustainability**: The manager questions the longevity of current AI capital expenditures and valuations, noting diminishing returns from latest LLM advancements and believes that open-source models from China could erode the advantages of incumbents. • **Concerns about OpenAI**: Citing SimilarWeb traffic data, the manager highlights declining user growth for OAI, raising doubts about its capability to meet revenue acceleration necessary to validate high private valuations. • **Portfolio adjustments**: Increased exposure to Vail Resorts as the largest position due to its irreplaceable resort assets and attractive valuation relative to replacement cost. Also, bolstered investment in Alexandria Real Estate Equities (ARE), anticipating life-science real estate to rebound as biotech demand recovers. • **Biotech bet**: Initiated a position in uniQure, viewing its recent trial data as compelling and considering the potential for significant upside if regulatory clarity is achieved by mid-2026. • **Shorts in the tech space**: Continues short positions in overvalued software companies, specifically mentioning Palantir, as a protective measure against market downturns. • **Commercial real estate insights**: Noted softness in apartments due to oversupply, an improving yet still soft industrial sector, weakness in offices outside NYC, resilience in retail from low new supply, and a softer-than-expected hospitality outlook, predicting ongoing REIT take-privates and liquidations into 2026. Read the full letter → hfbestideas.com/letters?open=f…

Artemis UK Special Situations Fund's latest quarterly letter — key takeaways: • **The Q4 landscape was heavily influenced by the UK Budget and leaks, adversely affecting sector confidence and creating policy outcomes impacting holdings.** • Management proactively trimmed Entain as they anticipated gambling tax rises, with online gaming duties unexpectedly increased to 40%, causing a significant sector downturn. • Whitbread faced severe impacts due to a draft business-rate revaluation for hotels, indicating a potential long-term value transfer to the UK government that might be contested. • B&M's recent earnings downgrade was noteworthy; however, new CEO Tjeerd Jegen's turnaround plan—focused on price reductions and improved product availability—holds future upside potential. • Banks, particularly Standard Chartered and Barclays, emerged as key contributors following Q3 beats and upgraded guidance, suggesting further medium-term target upgrades could be on the horizon. • IG Group successfully sidestepped increased Budget taxes on spread betting, demonstrating customer growth under CEO Breon Corcoran thanks to innovative products and effective marketing strategies. • Watches of Switzerland saw a rebound after tariff reductions on Swiss goods, alongside sustained robust demand in the US market. • Portfolio adjustments included adding YouGov—valued for its high returns and recurring revenue potential—while exiting Jet2 for realized gains and selling FirstGroup due to potential policy risks from a Labour government. • The fund's strategy emphasizes leveraging recovery potential in undervalued domestic stocks and selectively increasing exposure to UK mid-cap equities, all while maintaining disciplined, stewardship-informed stock selection. Read the full letter → hfbestideas.com/letters?open=G…

Smoak Capital's latest quarterly letter — key takeaways: • **Positioned defensively in 2025 with very limited AI exposure**, acknowledging that this likely caused underperformance against an AI-driven S&P 500; prefers undervalued names with growth optionality until clearer AI winners emerge. • Strategic shift to include more growth-oriented investments using the J-curve/LTV:CAC framework while maintaining a value/margin-of-safety discipline; notes challenges in screening for growth-stage and intangible-heavy businesses. • Argues that accounting standards understate earnings for companies capitalizing on economic value, such as R&D and customer acquisition, citing academic support for greater capitalization but questioning the practicality of rules-based fixes. • High-conviction idea: Tobila Systems (JP:4441) is growing rapidly (50–90% YoY) in its Solutions segment, with underreported free cash flow due to front-loaded cash from 5-year Biz licenses; estimates LTV/CAC >3 with low EV/FCF, presenting asymmetric upside. • Competitive advantage for Tobila includes a proprietary spam/fraud database and regulatory tailwinds from Japanese laws aimed at reducing customer harassment, making AI call-screening an inferior threat. • Noteworthy performers: PHI Group (helicopter operator) is cheap vs. peers due to its obscure listing; Azeus Systems shows strong core growth (~20%) despite a one-time contract issue; IG Design Group largely sold after insufficient clarity on turnaround. • Holding Medical Facilities (TSX:DR) where asset sales at ~9x EBIT and a large cash balance imply >15% shareholder yield; valuation at ~4.7x EV/EBIT suggests a patient hold or eventual sale. Read the full letter → hfbestideas.com/letters?open=v…

35 pitches found in hedge fund reports this week : ABN AMRO Bank NV (ABN NA) by Platinium Asset Management Alaska Air Group, Inc. (ALK US) by Signia Small Cap Value Alphabet Inc. (GOOGL US) by Sequoia Fund argenx (ARGX US) by Sands Capital Global Growth Atlantic Union Bankshares (AUB US) by Aristotle Small Mid Cap Equity Banca Monte dei Paschi di Siena SpA (BMPS IM) by Ariel Global Bank of Ireland Group plc (BIRG ID) by Ariel Global Boston Scientific Corporation (BSX US) by Sands Capital Global Leaders Bridgestone Corporation (5108 JP) by Schafer Cullen International High Dividend ADR Carpenter Technology Corporation (CRS US) by Sands Capital Select Growth Chubb Limited (CB US) by Davis Financial Fund Ciena (CIEN US) by Aristotle Small Mid Cap Equity Companhia de Saneamento Básico do State de São Paulo - SABESP (SBS US) by Schafer Cullen Water Impact Strategy Converge ICT Solutions, Inc. (CNVRG PM) by Palm Harbour Capital FANUC Corporation (6954 JP) by Aristotle International Equity Fiserv, Inc. (FI US) by Vulcan Value Partners Genus Plc (GNS LN) by Greenwood Investors H World Group (1179 HK) by Sands Capital Emerging Markets Growth Hewlett Packard Enterprise Company (HPE US) by Ariel Global Howmet Aerospace (HWM US) by Aristotle Large Cap Growth National Research Corporation (NRC US) by Long Cast Advisers National Vision (EYE US) by Ninepoint Cannabis & Alternative Health Fund Nebius Group N.V. (NBIS US) by Alger Spectra Fund Net Lease Office Properties (NLOP US) by Alluvial Capital Novo Nordisk A/S (NOVOB DC) by Schafer Cullen International High Dividend ADR Pony AI (PONY US) by Platinium Asset Management Qualcomm Incorporated (QCOM US) by Schafer Cullen Enhanced Equity Income Raiffeisen Bank International AG (RBI AV) by Acatis Revolution Medicines (RVMD US) by Aristotle Large Cap Growth Secure Trust Bank Plc (STB LN) by Ennismore European Smaller Companies Fund Shift4 Payments (FOUR US) by Greystone Capital Management STO SE & Co KGaA (STO3 GY) by Ennismore European Smaller Companies Fund UnitedHealth Group Inc. (UNH US) by Sequoia Fund Visa Inc. (V US) by Ironvine Capital Partners WesBanco (WSBC US) by Aristotle Small Cap Equity

YCG Investments' latest quarterly letter — key takeaways: • **The manager believes that the market rewards speculation and high-risk behavior, with historic concentration in AI and momentum as a dominant factor.** • There are concerns that AI-themed stocks and unprofitable companies have outperformed while historically high-quality stocks have materially lagged. • The investment stance remains a steady, long-term focus on "recession-resistant toll takers" and high-quality businesses, with a conviction that behavioral biases lead to persistent mispricing of quality. • Portfolio actions included trimming mega-cap tech and recent outperformers, reallocating proceeds into underperformers and high-quality names like Copart and Verisk, and initiating positions in TransDigm and Linde. • **TransDigm is viewed as a near-monopoly aerospace aftermarket supplier with durable pricing power and strong cash flows, benefiting from secular air-travel tailwinds.** • **Linde is highlighted as the largest industrial gas player with cost advantages and pricing power, perceived to be mispriced after recent industrial weakness.** • **Meta has been reinitiated with a focus on its strong user engagement and monetization potential, leveraging heavy AI investment despite concerns about AI spending.** • The process involves opportunistic rebalancing by buying more cyclically out-of-favor high-quality names, a strategy supported by historical recoveries of quality stocks. Read the full letter → hfbestideas.com/letters?open=4…

Schafer Cullen High Dividend Value's latest quarterly letter — key takeaways: • **Constructive outlook for 2026 driven by expected Fed rate cuts, fiscal stimulus from tax/capex provisions, and potential tariff reductions, but warns of K-shaped risks if employment weakens.** • Favors high-dividend/value stocks as a contrarian play against AI-driven growth, citing extreme index concentration and speculative dynamics that have likely overvalued AI potential. • Current strategy trades at approximately 15.1x 2026 P/E with a 3.5% yield, highlighting strong dividend growth as 36 of 43 holdings raised dividends in 2025, contrasting with higher P/Es and lower yields among benchmarks. • Identifies elevated concentration in S&P (top 5/10 holdings representing ~30%/40%), heavy retail and leveraged-ETF activity, and narrow market breadth as indicators for a potential shift towards value/dividend sectors. • No new purchases in Q4; notable trims were made to Exxon Mobil, Broadcom, RTX, and Johnson Controls, while proceeds from Unilever’s distribution were liquidated. • Maintains underweight or no exposure to major AI/Tech names (e.g., no Alphabet), while being overweight in Financials, Industrials, and Healthcare, anticipating idiosyncratic catalysts and mean-reversion upside. • Company-specific drivers include Citigroup (regulatory relief and ROTCE growth), Morgan Stanley (momentum in fee-based wealth), Merck (oncology strength and M&A), UPS (cost restructuring), and RTX (defense growth), with concerns over fading halo effects from Microsoft/OpenAI. • With around $8T in money market cash and declining money-market yields, dividend income plus growth is increasingly viewed as a competitive alternative to cash and fixed income, especially as growth-to-value spreads may mean-revert. Read the full letter → hfbestideas.com/letters?open=p…

From Large-cap Pharma to Small-cap SaaS: 5 UK convictions pitched in the latest quarterly letters from global asset managers : → Aoris on $IHG LN: InterContinental Hotels Group is a global hotel franchisor whose loyalty and systems drive conversions and market share gains, supporting long-term earnings growth. → Longriver on $WISE LN: Wise plc is building a compliant, scalable global cross-border money movement platform with reinforcing Consumer, Business, and Platform channels that share scale economies to drive durable compounding with bounded downside. → Oakmark International Fund on $AZN US: AstraZeneca PLC is a global pharma leader with a strong on-market portfolio, best-in-class late-stage pipeline, and exceptional management trading below intrinsic value. → Highwood Value Partners on $GETB LN: GetBusy PLC is a small-cap productivity software company with a growing US asset and visible sale catalysts that imply value multiple times the current price. → Harding Loevner International Small Companies Equity on $CRW LN: Cranswick is a vertically integrated UK meat producer benefiting from quality control, traceability, and rising global protein demand.

By now, you’ve likely heard the $TTD story: down 80% from the top vs. a massive $150M insider buy. Checking the database for the latest institutional theses on the name: -> Rowan Street (Q4'25): The Trade Desk is seen as a high-quality, asset-light ad-tech platform with strong network effects and profitability. However, recent execution and communication issues have inhibited confidence. Following a disappointing Q4 2024 earnings report, which marked a rare revenue miss, the stock experienced a significant decline. Investors are now seeking clearer accountability from management and improved communication regarding execution missteps. Although the long-term opportunity remains intact, trust has been eroded, leading to a cautious stance on the stock as the firm monitors developments closely. -> Harding Loevner Global Developed Markets Equity (Q3'25): 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. While the company projected a 14% revenue growth for the third quarter, which is modestly below market expectations, the platform's unique position as an independent entity allows it to capture ad dollars that are moving away from traditional media. As viewers increasingly cut the cord, the roughly $150 billion that advertisers spend on traditional TV is likely to flow into The Trade Desk’s offerings, positioning the company to leverage its capabilities in digital advertising effectively. -> Vision Capital (Q3'25): The Trade Desk is the leading independent programmatic digital advertising platform well-positioned to benefit from the increasing connected TV ad spend, despite recent challenges and competition from Amazon DSP. The company has faced difficulties, including its first quarterly revenue miss and rising competition, but its strategic focus remains on capturing digital ad growth, particularly in connected TV and mobile sectors. The recent rollout of the Kokai platform shows promise, with 75% of ad spend now flowing through it, which clients report has improved performance significantly. Despite competitive pressures, the long-term outlook remains strong due to The Trade Desk's unique positioning outside the major walled gardens. -> Baron Opportunity Fund (Q2'25): The Trade Desk is a leading independent platform for digital advertising that holds significant potential for future growth in the under-penetrated programmatic advertising market. Following its first earnings miss, the fund has continued to add to its position, believing that the company is executing well and has a strong pipeline for growth. The reorganization of the company and partnerships with major players like Netflix and Disney validate its core strategy. The fund sees The Trade Desk as an optimal choice for advertisers seeking access to connected TV inventory and believes it has a substantial runway for growth, with only a 10% share in the $100 billion programmatic advertising market.->

Polar Capital Emerging Market Stars Fund's latest quarterly letter — key takeaways: • **The macro backdrop is primarily influenced by US policy, Fed rate moves, and AI advancements; the manager's base case anticipates a weaker USD along with improving liquidity and inflation trends for emerging markets.** • **China's Fourth Plenum is viewed as structurally positive, with a strong policy focus on tech self-reliance and innovation; the manager expects targeted success in sectors like semiconductors, robotics, and biotech.** • Technology and AI remain a core conviction; the manager believes there will be no demand “cliff,” and the Asian semiconductor supply chain stands to benefit regardless of whether TPUs or GPUs dominate. • Portfolio adjustments include adding to Unimicron for GPU/TPU components, trimming Sea due to heightened competition from Amazon in Brazil, increasing overweight in Tencent, and gradually raising exposure to India with a focus on future capex inflection. • North Asia, particularly China and South Korea, is identified as the most attractive region, with South Korea benefiting from a memory upcycle and a strong governance agenda; India shows potential but is hindered by a lack of capex, while Brazil benefits from tariff relief and political shifts. • The fund maintains long-term positions in Alibaba, driven by a cloud growth thesis; Xiaomi is viewed as a long-term winner due to reasonable valuation and strong balance sheet; positions in TSMC, Samsung, and SK Hynix are also significant. • Risks include intensified e-commerce competition (notably Amazon's activities in Brazil), potential profit-taking in China, style rotations influenced by FOMC communications, and ongoing tariff uncertainties; companies are expected to manage some of these pressures. • The investment philosophy centers on long-term, secular growth by focusing on local market leaders, engaging actively with management, and positioning for opportunities arising from a “new multipolar world.” Read the full letter → hfbestideas.com/letters?open=Z…

35 pitches found in hedge fund reports this week : Amphenol Corp. (APH US) by Edgewood ASM International N.V. (ASM NA) by Polen International Growth Auto Trader Group plc (AUTO LN) by Ennismore Global Smaller Companies Fund Barclays PLC (BARC LN) by Acatis Burford Capital (BUR US) by Focus Capital Management DexCom (DXCM US) by Aristotle Focus Growth Disco Corporation (6146 JP) by Polen International Growth Dover Corporation (DOV US) by Diamond Hill Large Cap Fund Elanco Animal Health, Inc. (ELAN US) by Hardman Johnston Global Equity Focusrite plc (TUNE LN) by Acatis Gruma S.A.B. de C.V. (GRUMAB MM) by Overstone Emerging Markets Equity Fund Hawkins, Inc. (HWKN US) by Giverny Capital Hero MotoCorp Ltd. (HMCL IN) by Ariel Emerging Markets Value ex-China Horiba Ltd. (6856 JP) by Ariel Global Jack Henry & Associates Inc (JKHY US) by Aoris Jack in the Box Inc. (JACK US) by Greenwood Investors Jiangsu Hengrui Pharmaceuticals Co., Ltd. (1276 HK) by Alger International Opportunities Fund Judges Scientific plc (JDG LN) by P&R Investment Kinsale Capital Group, Inc. (KNSL US) by Giverny Capital Kuaishou Technology (1024 HK) by Ariel Global Lara Exploration (LRA CN) by MJG Capital Mattel (MAT US) by Longleaf Partners Small-Cap Fund McBride plc. (MCB LN) by Alluvial Capital Monument Mining Limited (MMY CN) by Fairlight Capital Quanta Services, Inc. (PWR US) by Sands Capital Select Growth SAF-Holland SE (SFQ GY) by Ennismore European Smaller Companies Fund Salesforce, Inc. (CRM US) by Vulcan Value Partners Sanuwave Health, Inc. (SNWV US) by Deep Sail Capital Spotify Technology S.A. (SPOT US) by Sands Capital Select Growth Suofeiya Home Collection Co., Ltd. (002572 CH) by Guinness Greater China Fund Sysmex (6869 JP) by Harding Loevner Global Small Companies Equity TAV Havalimanlari Holding AS (TAVHL TI) by Pabrai Wagons Fund The Cooper Companies, Inc. (COO US) by Diamond Hill Large Cap Fund The St. Joe Company (JOE US) by Praetorian Capital Wells Fargo & Company (WFC US) by Davis Financial Fund

$AOF (ATOSS Software) is down 40% in 7 months, yet its CEO bought €19M in Feb following €15M in Q4 2025. While these recent purchases signal accelerating conviction, Hertford Capital detailed the long-term thesis in their Q3 2025 letter: 🔹 The Strategy: A transition to 75% recurring revenue (targeting 80% by 2030) and a 16% software CAGR. 🔹 Operational Upside: High-margin scalability in HR/Workforce Management with 5+ live AI-powered services and agentic AI in development. 🔹 The Valuation: Hertford targets €400M+ revenue by 2030. At current levels, they see potential for annualized returns in the mid-teens to low-twenties. Full thesis and Hertford Capital Q3 letter here: hfbestideas.com/analysis/vlwdb…

Third Point's latest quarterly letter — key takeaways: • **Rotation away from software toward semiconductors, memory, and semicap equipment, with leadership broadening into industrials, healthcare, and consumer sectors. Gold and rare earths have appreciated significantly while Bitcoin has faced a substantial correction.** • AI is driving skepticism towards capital-light, high-margin software businesses, contributing to sector weakness and disruption risk; the firm utilizes AI outputs for idea generation and hedging. • The manager favors capital-intensive businesses, such as construction services, transports, defense contractors, and data center suppliers, as they stand to benefit from supply-chain reconstruction and increased security spending. • Positioning changes include expanding exposure to healthcare (particularly life sciences and medical devices), increasing single-name shorts, and raising foreign equity exposure in light of high US institutional and retail positioning. • **Invested in SK Square to capture its substantial NAV discount (currently ~47%) related to its SK Hynix assets, anticipating that buybacks and an ADR listing will facilitate re-rating.** • **Somnigroup is viewed as a consolidation play in the mattress sector, leveraging the Mattress Firm merger, a rising Tempur mix, and potential consolidation opportunities to gain operational and market share advantages.** • **Quebecor is positioned as a Canadian wireless challenger with a low ARPU strategy and favorable domestic roaming, expected to achieve outsized subscriber growth and strong EBITDA margins while maintaining lower leverage relative to incumbents.** • The manager sees corporate credit underperforming in 2025 but expects more dispersion in 2026, identifying opportunities in stressed leveraged loans, CLO baskets, and restructurings. They maintain a favorable view on structured credit and seasoned residential mortgages, focusing on liquidity and selective illiquidity premia. Read the full letter → hfbestideas.com/letters?open=t…

Here is the complete research database on Constellation Software, with links to all the letters mentioned above : hfbestideas.com/?q=CSU+CN&page…

Constellation Software $CSU is down 55% in 6 months. It did not prevent some of the best funds from stepping in during Q4. Giverny Capital: Constellation Software has faced a significant decline, dropping 22% in the past year despite anticipated earnings growth of nearly 20%. The company's unique position as a diversified vertical-market software acquirer, with bespoke solutions for various sectors like healthcare and public transport, makes it resilient against AI disruptions. The abrupt retirement of founder-CEO Mark Leonard has contributed to a bearish sentiment, but the stock now trades at its lowest price relative to earnings. Giverny believes that if earnings continue to grow at 15-20%, the stock price will eventually catch up to its fundamental value, despite current momentum challenges in the market. REQ: The recent drawdown in Constellation Software has created an attractive buying opportunity. They have taken a net buyer stance, confident in the company's decentralized structure and strong cultural foundations. The resignation of Mark Leonard, while abrupt, is mitigated by the enduring stability of the organization's leadership model. Each operating group functions independently, ensuring continuity and resilience. With Mark Miller stepping in as President, the fund sees minimal disruption to the company's operations, which have been designed to thrive without reliance on any single individual, thus positioning Constellation well for future growth. Akre: The departure of visionary leader Mark Leonard raises concerns, but Constellation's customer intimacy and decentralized structure are expected to drive future success. The fund highlights the company’s deep understanding of its vertical markets, cultivated over decades, which positions it favorably in a post-AI landscape. While Leonard's absence is felt, the transition to Mark Miller is viewed positively due to his extensive history with the firm. The decentralized decision-making model will allow Constellation to operate effectively, as evidenced by recent executive purchases of shares, signaling confidence in the company's long-term prospects.

Institutional flows in Insurance - Property & Casualty: → Wedgewood Partners on $CB US: Chubb is a global P&C insurer with specialty lines, best-in-class underwriting, strong claims service, and growing investment income supporting durable double-digit earnings growth. → SVN Capital on $KNSL US: Kinsale Capital Group is a tech-enabled E&S insurer with a structurally low expense ratio, consistent underwriting profits, conservative capital and buybacks, prioritizing pricing discipline over volume. → Ariel Small Cap Value on $RLI US: RLI Corp. is a specialty insurer with niche expertise and disciplined underwriting that supports resilient profitability and long-term earnings growth. → Giverny Capital on $KNSL US: Kinsale Capital Group is a founder-led, highly efficient specialty insurer with technology-driven underwriting speed and the lowest expense ratio. → Royal London Global Equity Income Fund on $ADM LN: 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. → LRT on $TRV US: The Travelers Companies, Inc. is a leading provider of property and casualty insurance in the U.S., leveraging its extensive data, disciplined underwriting, and a strong distribution network to maintain a competitive edge across its Business, Bond & Specialty, and Personal Insurance segments.

Alpha Wealth Funds on Alphabet $GOOGL :

Orbis Japan Equity's latest quarterly letter — key takeaways: • **Active return relies on both sector selection and stock picking; in 2025, stock selection was strong but sector positioning proved a headwind.** • Significant and deliberate **overweight to domestically-oriented names**, the largest since 1998, to hedge against potential yen appreciation impacting exporters and financials. • **Yen remains “deeply depressed”** at end-2025 due to trade uncertainty, a new Prime Minister, and BOJ rate-normalisation speculation. • Structural **overweight to mid-caps** as mega-caps trade at a ~40% premium; mid-caps present a richer opportunity set based on bottom-up analysis. • **Cautious on AI mega-cap names** due to frothy valuations and limited exposure to headline AI winners, which the manager views as a tactical miss. • Idiosyncratic winners highlighted include **Mitsubishi Estate** (strong demand and rental growth), **GMO Internet** (consistent growth and buybacks), **TechnoPro** (PE takeover speculation), and **Sumitomo Electric** (benefits from datacentre/AI demand). • **Conviction remains unchanged**; continuing to focus on domestically-oriented and mid-cap opportunities while applying disciplined bottom-up stock selection despite sector headwinds. Read the full letter → hfbestideas.com/letters?open=p…