• The company delivers innovations that connect technology to human breakthroughs and play a critical role at the intersection of the physical and digital worlds by providing the building blocks to sense, measure, interpret, connect, and power.
• The company’s customers include original equipment manufacturers and customers that build electronic subsystems for integration into larger systems.
• The company’s analog products provide exposure to high-growth trends, including automotive electrification and driver assistance systems, factory intelligence and automation, the Intelligent Edge, Internet of Things device proliferation, and sustainable energy.

• SLB provides equipment, services and digital tools to help oil and gas producers operate more efficiently, including reservoir characterization, rig and well construction and production enhancement.
• The company’s scale and technical expertise are key differentiators. Weak near-term demand, an oil glut, falling commodity prices, and concerns about future spending amid a global shift to renewable energies presented an attractive entry point.
• We believe tailwinds are supporting rising demand over the medium term, as national oil companies invest in long-cycle projects to grow capacity and address the natural decline of production.

Our larger position in the sector is Avation PLC, a UK-listed, Singapore-based specialist lessor, which uniquely still has vestiges of overhang from the impact of COVID across the sector and which is our view will continue to benefit from company-specific factors over and above the demand/supply imbalance within the aircraft industry.
Avation PLC is a specialist Singapore-based, US$ accounted, London-listed entity run by an Australian with less than 10% of the fleet of AL or BOCA.
Aside from the attractions of the business itself and apparent other capital-provider interest in the niche, the allure of Avation lies not just in the equity price being more than supported by the existing asset base.

• The company operates two high-quality businesses in Japan: a dominant online healthcare jobs marketplace (HR PF) and a growing software segment (Medical PF) that provides mission-critical software to hospitals, clinics, pharmacies, and dental offices.
• The company is on pace to hit its 2029 mid-term targets of ¥100 billion in revenue and ¥20 billion in EBITDA, implying a 30% revenue CAGR and 36% EBITDA CAGR.
• Importantly, Medley is insulated from many of the macroeconomic risks facing global markets. Its services are mission-critical within a non-cyclical, domestically focused industry, positioning it to remain resilient across a wide range of global scenarios.

• Sun International is a leading casino, resort/hotel, online betting and pub slot machine operator in South Africa.
• In 2024, the company distributed R$416 million interim gross dividend, R$612 million final gross dividend, and R$141 million share buy-back for a total of R$1.2 billion capital return. In the meantime, Sun is trying to obtain regulatory approval for the acquisition of one of the two major peers.
• The shares trade at <7x earnings, <4x EV/EBITDA, >15% FCFE 2026, >10% dividend yield, which seems attractive. We think the stock could double.

• Arch pays incentive compensation to most of its underwriters using a ten-year lookback based on the profitability of their written policies. This is unique to the industry, where many firms instead compensate on the basis of premium growth or current year profitability.
• Arch has other ways of minimizing agency costs across the value chain. In commercial E&S lines, policies are often placed through a broker due to the complicated nature of the risks being underwritten.
• While Arch’s combined ratio is likely to creep higher later into the cycle, I believe that the shares are trading at an attractive valuation relative to normalized earnings.

• Arista Networks’ Ethernet and NVIDIA’s InfiniBand represent two distinct approaches to AI data center networking, each with unique advantages, but the networking landscape is continually evolving.
• Arista Networks employs its proprietary software to deliver high-performance, scalable, and programmable networking solutions tailored for modern data centers and AI-driven infrastructures.
• With an 18% growth rate CAGR and a mid-20s ROIC, I believe over the next three years Arista will generate slightly above the rule of 40. Based on the current valuation, we project that over the next 3 years, Arista can generate an IRR of above 25% per annum.

• Despite the continued strength of its core business, we believe recent capital allocation decisions have derailed CoStar’s compounding algorithm.
• After several years of uncertainty, we believe it is time for CoStar to begin the journey of meaningful self-help. During the first quarter, we engaged with the company and its founder and CEO, Andy Florance, with the goal of helping the company improve its capital allocation framework.
• As CoStar’s core business continues to compound value and improved capital allocation starts to narrow the losses at Homes.com, we believe the company can grow EBITDA by a factor of >7x over the next few years, setting the stage for the stock to regain itsstar status.

• Pipeline struggles aside, ARVN has over $1 billion in cash and two significant license/collaboration agreements. With Pfizer, ARVN is eligible to receive up to $1.4 billion of payments upon the approval of ARV-471 and then share equally (50/50) in all profits and losses of the drug.
• With Novartis, ARVN is eligible to receive up to $1 billion upon the approval of ARV-766, with ongoing tiered royalties thereafter.
• The company’s largest holder, EcoR1, with a 15% stake, is an engaged and concentrated biotech specialist with sufficient incentive to prevent further value destruction.