Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | -8.9% | -8.9% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | -8.9% | -8.9% |
Broyhill Vitruvian Value declined 8.9% in Q1 2026, underperforming the MSCI All Country World Index's 3.1% decline due to three structural portfolio tilts moving against them simultaneously: no energy exposure, significant international positioning, and large non-cyclical exposure that failed to provide expected downside protection. Despite defensive positioning with nearly half the portfolio in noncyclical sectors, the manager emphasizes that underlying businesses are performing well with rising consensus estimates even as stock prices declined, suggesting a positioning-driven rather than fundamental sell-off. The manager used market volatility to initiate multiple new positions including Microsoft, Smurfit WestRock, and housing-related names Masco and Floor & Décor, while adding to high-conviction European positions like LVMH and Watches of Switzerland. Significantly increased healthcare exposure, particularly in Medical Device and Life Sciences Tools sectors, viewing AI as a catalyst for increased R&D spending rather than a threat to clinical research organizations. Portfolio is meaningfully cheaper today with unchanged business quality assessments, positioning for asymmetric upside when fundamentals reassert over momentum.
Portfolio positioned in quality businesses trading at attractive valuations with improving fundamentals, particularly in defensive sectors and international markets, while avoiding overvalued momentum stocks.
Manager expects current positioning to benefit when market focus shifts from momentum to fundamentals. Views portfolio as meaningfully cheaper with unchanged business quality assessments. Anticipates sharp recovery following periods of relative underperformance based on historical patterns. Willing to accept short-term underperformance risk given asymmetric reward potential when market turns.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 13 2026 | 2026 Q1 | AVTR, BALL, CACI, FMS, FND, IQV, KW, LEG, MAS, MC.PA, MSFT, PM, RKT.L, RTO.L, SHC, SMWT, VVV, WOSG.L | AI, Defensive, Europe, healthcare, Quality, value |
VVV RTO BALL RB.L IQV AVTR SHC MSFT SW MAS FND |
Broyhill underperformed in Q1 due to structural tilts away from energy and toward international/defensive names, but used volatility to add high-conviction positions in healthcare, housing, and European equities. Manager views current disconnect between improving fundamentals and declining prices as positioning-driven, creating asymmetric opportunity as portfolio trades at meaningfully cheaper valuations with unchanged business quality. |
| Feb 12 2026 | 2025 Q4 | AVTR, BAX, DLTR, FI, FUN, IQV, PM, RKT.L, TMO, WOSG.L | AI, Concentration, defensives, Europe, fundamentals, momentum, Speculation, value |
PM IQV DLTR FISV AVTR FUN WOSG LN RKT LN |
Broyhill gained 1.7% in 2025 versus MSCI ACWI's 22.9%, deliberately avoiding AI-driven speculation while concentrating in undervalued businesses trading at discounts to fundamentals. The manager views current market concentration as a bubble similar to historical infrastructure buildouts, positioning the portfolio in defensive sectors, small-caps, and European companies for eventual mean reversion when fundamentals reassert themselves over momentum. |
| Sep 4 2025 | 2025 Q2 | AVTR, CRL, DLTR, FI, IQV, NE, PM, SCHW, TDW, TMO, VAL | Buybacks, Concentration, dispersion, global, healthcare, small caps, value |
DLTR PM AVTR FI IQV |
Broyhill delivered 6.6% first-half returns through volatile markets with concentrated value approach. Portfolio trades at half market multiple while offering double-digit growth and multiple near-term catalysts. Manager sees fertile stock-picking environment with record dispersion favoring active selection over passive mega-cap concentration. Positioned in smaller disconnected companies and international opportunities at attractive valuations. |
| May 14 2025 | 2025 Q1 | AVTR, BAX, DLTR, NTDOY, PM, SIX, UBER | diversification, Europe, global, tariffs, technology, value, volatility |
PM BAX AVTR SIX UBER DLTR |
Broyhill outperformed in volatile Q1 2025 as markets questioned AI capital allocation. Historic shift toward European assets creates compelling opportunities given depressed valuations and record underperformance. Trade policy uncertainty adds complexity but creates mispricing. Portfolio demonstrates resilience through stock selection, with new positions in Uber and Dollar Tree while maintaining disciplined value approach globally. |
| Feb 5 2025 | 2024 Q4 | AVTR, BAX, CRL, EVO.ST, FMS.DE, MCK, NICE, SIX | AI, Concentration, Europe, healthcare, small caps, underperformance, value |
NICE EVO.ST SIX BAX AVTR |
Broyhill's value approach underperformed in 2024's AI-driven momentum market but positions them for mean reversion. Trading at 14x earnings versus market's 24x, with half the portfolio in undervalued international and small-cap stocks. Extreme valuation spreads between growth/value, large/small, and US/international create compelling opportunities for patient capital as concentration reaches historic peaks. |
| Nov 5 2024 | 2024 Q3 | AVTR, BAX, BN.PA, DG, EPAM, EVO.ST, FI, NICE, PM, PYPL, ROL, RTO.L, SCHW | consumer, financials, gaming, healthcare, technology, value |
RTO.L EVO.ST NICE |
Broyhill gained 6.0% in Q3 led by Philip Morris and its popular Zyn product. Active portfolio management included exits from PayPal and Schwab while adding Rentokil Initial, Evolution AB, and Nice Ltd at attractive valuations. Dollar General disappointed as market share losses contradicted expectations. The firm continues its disciplined value approach seeking mispriced opportunities. |
| Aug 30 2024 | 2024 Q2 | AVTR, BAX, FI, FMS, PM | AI, Concentration, Defensive, momentum, rates, tech, value |
AVTR BAX FI FMS PM |
Broyhill underperformed in Q2 due to extreme market concentration in momentum stocks but rebounded strongly in July as rotation began favoring value. Manager maintains disciplined value approach focused on defensive sectors and international exposure. Historical analysis shows current market concentration extremes have always led to multi-year value outperformance periods, positioning for significant relative gains ahead. |
| May 15 2024 | 2024 Q1 | AAPL, AVTR, FIS, FISV, FMX, SPOT, UMG.AS, WMG | Buybacks, Fintech, Music, payments, Recovery, value |
FISV AVTR FIS WMG |
Broyhill delivered strong Q1 performance with Fiserv, Avantor, and FIS as top contributors. The firm focuses on undervalued companies executing shareholder-friendly strategies like buybacks and debt reduction. Key moves included exiting FMX after value realization and adding Warner Music Group to capitalize on record labels' content control power. |
| Oct 2 2024 | 2023 Q4 | ATVI, DG, DLTR, NFLX | gaming, M&A, operations, retail, Rural Markets, value |
ATVI 0TDG LN |
Broyhill successfully navigated Activision Blizzard's Microsoft acquisition closure while doubling down on Dollar General amid operational challenges. The firm exited Netflix at fair value and rotated from Dollar Tree, demonstrating disciplined value investing with patient capital deployment and contrarian positioning during temporary headwinds. |
| Nov 16 2023 | 2023 Q3 | ATVI, DG, DLTR, NFLX | gaming, M&A, retail, Rural Markets, value |
ATVI 0TDG LN |
Broyhill's Q3 was driven by successful Activision Blizzard merger completion and Dollar General operational challenges. The firm demonstrated disciplined value investing by re-underwriting DG amid negative headlines while rotating from Dollar Tree. Netflix was exited after rapid value realization from streaming initiatives exceeded timing expectations. |
| Jul 27 2023 | 2023 Q2 | 0R1E LN, FHN, PYPL, SCHW, TD | - | - | |
| Feb 23 2023 | 2022 Q4 | ATVI, KOF, MCK, META, MSGS, PM | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIManager views AI as creating productivity gains but believes market fears about AI disrupting clinical research organizations are overblown. Argues that highly regulated industries like FDA drug approval will be slow to adopt AI, and that AI will actually increase demand for clinical research data and infrastructure rather than replace it. |
Clinical Research Drug Discovery Productivity Regulation Healthcare |
HealthcareSignificantly increased investments in Medical Device and Life Sciences Tools sectors during market sell-off. Views clinical research as benefiting from AI-driven drug discovery acceleration, with CROs like IQVIA positioned to benefit from increased R&D spending as success rates improve. |
Medical Devices Life Sciences Clinical Research Biotechnology CRO | |
ValuePortfolio positioned in businesses trading at attractive valuations with improving fundamentals despite declining stock prices. Manager emphasizes buying quality companies at discounted multiples, particularly in defensive sectors and international markets. |
Valuation Fundamentals Defensive Quality Discount | |
EuropeNearly half the portfolio invested in businesses outside the U.S., with significant exposure to European markets. Used indiscriminate sell-off in European and UK equities as opportunity to add to high conviction positions like LVMH and Watches of Switzerland. |
International UK Continental Opportunity Positioning | |
| 2025 Q4 |
AIManager believes AI revolution is fundamentally different from dot-com bubble due to current compute capacity constraints versus future demand. Views infrastructure buildout as most secure part of AI food chain, explaining continued investment in Nvidia, ASML, and new Micron position. |
Infrastructure Compute GPUs Data Centers Nvidia |
Trade PolicyDiscusses tariff-driven market volatility during 2025 and upcoming Supreme Court ruling on Trump tariff legality. Notes potential invalidation of tariffs imposed under IEEPA but expects similar tariffs under other legal frameworks. |
Tariffs IEEPA Supreme Court Trade | |
Enterprise SoftwareConsolidating exposure to platform companies ServiceNow and Salesforce while eliminating Adobe due to AI disintermediation risks. Believes platforms connecting workflows across organizations are safer than best-of-breed apps. |
Platforms SaaS Disintermediation Workflows | |
Surgical RoboticsIntuitive Surgical delivered exceptional Q3 results with 20% procedure growth and strong DV5 system adoption. Company continues democratizing top-quintile surgical outcomes through robotic surgery with expanding competitive moat. |
Robotics Medical Devices Procedures Innovation | |
| 2025 Q2 |
ValuePortfolio trades at nearly half the price of broader market while expected to deliver double-digit earnings growth. Manager sees compelling risk-adjusted returns with portfolio at attractive valuations versus 22x earnings for broader market. |
Valuation Earnings Multiple Discount Undervalued |
Small CapsExposure to smaller companies has meaningfully increased over past two years. Manager sees good businesses valued at $5-25 billion disconnected from S&P 500, with smaller stocks priced to deliver far greater forward returns. |
Small Cap Mid Cap Dispersion Outperformance Flexibility | |
BuybacksSeveral portfolio companies expected to engage in aggressive share repurchases as catalysts to unlock value over next 6-12 months. Forthcoming share repurchases mentioned as key driver for Fiserv investment thesis. |
Share Repurchases Capital Return Value Creation Catalyst | |
CRO & CDMOHealthcare exposure includes contract research organizations like IQVIA and Charles River Labs. These provide basic products and services needed to move science forward, with entrenched positioning at historically low valuations. |
Contract Research Clinical Trials Healthcare Services Scientific Research | |
| 2025 Q1 |
VolatilityVolatility was the main theme of the first quarter, particularly among US technology companies that dominate passive indices. The portfolio performed well as markets questioned capital allocation to semiconductors and data centers for AI, with Broyhill gaining 2% gross while the S&P 500 declined 6% and Magnificent Seven fell 13% during key volatile periods. |
Technology Semiconductors AI Market Indices |
EuropeHistoric shift toward European assets occurred as US stocks trailed by the largest margin in decades. Europe has been in the doghouse since Russia's Ukraine invasion, posting worst underperformance since the 70s with sentiment and capital flows at historic lows. Depressed valuations and lopsided positioning may be the only catalyst required for outperformance. |
Valuation Underperformance Sentiment Capital Positioning | |
Trade PolicyAnnouncement of broad-based tariffs triggered meaningful market declines with volatility eclipsed only by 1987 crash and 2008 financial crisis. Administration has work cut out during ninety-day period with expected front-loading of trade flows aggravating global imbalances. Long-term costs include higher prices, lower profits, and damaged confidence. |
Tariffs Trade Uncertainty Negotiations Policy | |
ValueSuperior returns come from superior odds, not superior stories. With unprecedented concentration in US markets and record valuation divergences globally, diversification has never been more important. Buying strong fundamentals at compelling valuations ultimately drives long-term returns, creating opportunities in mispriced assets. |
Valuation Fundamentals Diversification Mispriced Returns | |
| 2024 Q4 |
ValueGrowth stocks outperformed value by 20 percentage points in 2024, creating extreme valuation spreads. The manager believes current concentration and valuations set up value for potential decades of mean reversion, similar to post-dot-com periods. |
Growth Concentration Spreads Mean Reversion Underperformance |
Small CapsLarge stocks beat small stocks by 20 percentage points. Small companies now trade at their lowest relative valuation in decades, with the portfolio shifting down market cap spectrum as more investors crowd into biggest names. |
Market Cap Relative Valuation Concentration Underperformance Hunting Ground | |
EuropeEurope trades at its cheapest valuation in history with a record 40% discount to US equities. The manager sees extraordinary opportunities in European businesses despite recent underperformance weighing on portfolio returns. |
Valuation Discount Underperformance Opportunities Diversification | |
AIMarkets were obsessed with AI theme, fueling momentum-driven performance that left value investors out of sync. The manager views AI uncertainty as creating compelling value opportunities for differentiated investors. |
Obsession Momentum Uncertainty Disruption Differentiation | |
BiotechnologyHealthcare sector posted worst relative performance in history for second consecutive year. The manager capitalized on weakness by increasing Baxter position and initiating Charles River Labs, seeing defensive sectors as ripe for doubles with minimal downside. |
Underperformance Defensive Opportunities Valuation Risk | |
| 2024 Q3 |
TobaccoPhilip Morris is shifting business mix from combustible cigarettes towards reduced risk products and re-entering the US market through Swedish Match acquisition. Zyn has become wildly popular with supply constraints despite production expansion, while youth usage remains under 2%. |
Reduced Risk Products Zyn Swedish Match Combustibles |
PaymentsFiserv continues executing at a high level with strong performance. PayPal was exited following share appreciation on Fastlane rollout due to unclear growth trajectory of the new product. |
Digital Payments Fastlane Execution | |
GamingEvolution AB is a live casino supplier facing pressure from slower US online gaming legalization than hoped. However, the direction of progress matters more than pace, and the company offers high margin, high growth business at inexpensive valuation. |
Live Casino Online Gaming US Legalization | |
AINice Ltd develops customer contact center software where AI is viewed as an enabler of additional revenue streams with improved economics, contrary to market perception of AI as a threat to core operations. |
Contact Centers Cloud Software Revenue Enabler | |
| 2024 Q2 |
ValueManager emphasizes value investing approach amid market concentration in momentum stocks. Portfolio positioned in defensive sectors and cheaper companies outside current market favorites. Historical analysis shows extreme cap-weighted outperformance typically followed by value outperformance. |
Value Defensive Undervalued Cheap Multiples |
MomentumDiscusses the extreme momentum rally in mega-cap tech stocks and AI-fueled gains. Notes the violent unwind of momentum trades in July and historical patterns of momentum crashes. Manager deliberately avoided momentum strategies despite underperformance. |
Momentum Magnificent 7 AI Tech Crowded | |
AIReferences the AI-fueled rally driving market concentration and the subsequent correction. Mentions AI optimism reflected in tech valuations and skepticism about future returns on AI investments. Notes regulatory risks facing major AI companies. |
AI Technology Nvidia Optimism Bubble | |
| 2024 Q1 |
BuybacksMultiple portfolio companies are executing significant share repurchase programs. Fiserv reported its fifth straight quarter of buybacks over $1 billion, while FIS increased its buyback goal for 2024 after completing the Worldpay sale. |
Share Repurchases Capital Return Cash Deployment Shareholder Returns Management Capital Allocation |
PaymentsThe portfolio includes significant exposure to financial technology and payment processing companies. Fiserv's Clover volume continues gaining momentum with operating leverage, while FIS completed the strategic sale of Worldpay to focus on core operations. |
Payment Processing FinTech Transaction Volume Operating Leverage Financial Services | |
MusicWarner Music Group was added as a new position based on the power that record labels hold in the music industry. Labels control content on streaming platforms like Spotify and Apple Music, capturing the lion's share of industry profits despite platform growth. |
Record Labels Streaming Content Control Music Industry Platform Economics | |
| 2023 Q4 |
GamingActivision Blizzard acquisition by Microsoft faced regulatory hurdles from FTC and UK CMA but ultimately closed at $95 per share in October 2023. The deal involved transferring cloud gaming rights to Ubisoft to satisfy regulatory concerns. |
M&A Antitrust Cloud Gaming Regulatory Microsoft |
Dollar StoresDollar General faced operational challenges including store conditions and labor issues, prompting a $150 million investment. The company is implementing Smart Teams strategy to improve worst-performing stores while benefiting from rural population growth trends. |
Retail Operations Labor Rural Markets Store Conditions Execution | |
| 2023 Q3 |
GamingActivision Blizzard acquisition by Microsoft faced regulatory hurdles from FTC and UK CMA but ultimately closed at $95 per share in October 2023. The deal involved transfer of cloud gaming rights to Ubisoft to satisfy regulatory concerns. |
Gaming M&A Antitrust Cloud Gaming Regulatory |
Dollar StoresDollar General faced operational challenges including store conditions and labor issues, prompting a $150 million investment. The company is implementing Smart Teams strategy to improve worst-performing stores while benefiting from rural population growth trends. |
Dollar Stores Retail Operations Rural Markets Labor Investment Store Conditions |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| May 13, 2026 | Fund Letters | Broyhill Asset Management | VVV | Valvoline Inc. | Auto & Truck Dealerships | Specialty Retail | Bull | New York Stock Exchange | Automotive Services, Cash generative, defensive, market leader, Pricing power, Quick Lube, Unit growth | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | RTO | Rentokil Initial plc | Specialty Business Services | Commercial Services & Supplies | Bull | London Stock Exchange | contrarian, defensive, Margin Improvement, organic growth, pest control, Terminix integration, turnaround | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | BALL | Ball Corporation | Packaging & Containers | Metal & Glass Containers | Neutral | New York Stock Exchange | Aerospace divestiture, Aluminum containers, capital returns, Packaging, portfolio optimization, profit-taking, Pure-Play | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | RB.L | Reckitt Benckiser Group plc | Other | Household Products | Bull | London Stock Exchange | Asset Divestiture, brand portfolio, consumer staples, Litigation Overhang, Mead Johnson, OTC Pharmaceuticals, Seasonal headwinds | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | IQV | IQVIA Holdings Inc. | Diagnostics & Research | Life Sciences Tools & Services | Bull | New York Stock Exchange | AI disruption, Clinical research, contrarian, Data Assets, life sciences, Pharmaceutical Outsourcing, Regulatory Complexity | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | AVTR | Avantor Inc. | Medical Instruments & Supplies | Life Sciences Tools & Services | Bear | New York Stock Exchange | Capital Redeployment, Competitive pressure, Destocking Cycle, Investment failure, Life Sciences Tools, management execution, Market Share Loss | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | SHC | Sotera Health Company | Diagnostics & Research | Life Sciences Tools & Services | Bull | NASDAQ | contrarian, duopoly, Litigation Overhang, Medical Device, Mission-Critical, Pharmaceutical, Sterilization Services | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | MSFT | Microsoft Corporation | Software - Infrastructure | Systems Software | Bull | NASDAQ | Cloud computing, Enterprise software, Market dislocation, productivity software, Quality Business, technology, valuation opportunity | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | SW | Smurfit WestRock | Packaging & Containers | Paper Packaging | Bull | New York Stock Exchange | Capacity tightening, Cyclical Recovery, Earnings revision, Packaging, Paper Packaging, Pricing power, Supply-Demand | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | MAS | Masco Corporation | Building Products & Equipment | Building Products | Bull | New York Stock Exchange | Building Products, Cyclical, home improvement, Housing recovery, market share gains, Normalized Earnings, operational efficiency | Login |
| May 13, 2026 | Fund Letters | Broyhill Asset Management | FND | Floor & Decor Holdings Inc. | Home Improvement Retail | Home Improvement Retail | Bull | New York Stock Exchange | Flooring retail, home improvement, Housing recovery, market share gains, Normalized Earnings, operational efficiency, Specialty retail | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | PM | Philip Morris International Inc. | Consumer Staples | Tobacco | Bull | New York Stock Exchange | cashflow, Nicotine, Pricing, rerating, Smokefree | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | IQV | IQVIA Holdings Inc. | Health Care | Life Sciences Tools & Services | Bull | New York Stock Exchange | backlog, Biotech, Clinicaltrials, Outsourcing, recovery | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | DLTR | Dollar Tree, Inc. | Consumer Discretionary | Discount Stores | Bull | NASDAQ | discount, Margins, Normalization, tariffs, turnaround | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | FISV | Fiserv, Inc. | Financials | Transaction & Payment Processing Services | Bear | New York Stock Exchange | Competition, Execution, Fintech, Governance, Payments | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | AVTR | Avantor, Inc. | Health Care | Life Sciences Tools & Services | — | New York Stock Exchange | Activists, lifesciences, Margins, recovery, turnaround | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | FUN | Six Flags Entertainment Corporation | Consumer Discretionary | Leisure Facilities | Bear | New York Stock Exchange | Attendance, Discretionary, Integration, leverage, turnaround | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | WOSG LN | Watches of Switzerland Group plc | Consumer Discretionary | Specialty Stores | Bull | New York Stock Exchange | Distribution, Luxury, Margins, retail, valuation | Login |
| Feb 12, 2026 | Fund Letters | Christopher R. Pavese | RKT LN | Reckitt Benckiser Group plc | Consumer Staples | Household Products | Bull | New York Stock Exchange | buybacks, defensive, divestiture, litigation, Staples | Login |
| Sep 1, 2025 | Fund Letters | Broyhill Asset Management | DLTR | Dollar Tree | Consumer Discretionary | General Merchandise Stores | Bull | NASDAQ | consumer staples, contrarian, discount retail, spin-off, supply chain, tariffs, Value | Login |
| Sep 1, 2025 | Fund Letters | Broyhill Asset Management | PM | Philip Morris International | Consumer Staples | Tobacco | Bull | NYSE | consumer staples, growth, IQOS, Portfolio Management, smoke-free products, tobacco, ZYN | Login |
| Sep 1, 2025 | Fund Letters | Broyhill Asset Management | AVTR | Avantor | Health Care | Life Sciences Tools & Services | Bull | NYSE | activist investor, Biotech Tools, healthcare, life sciences, strategic review, turnaround, Value | Login |
| Sep 1, 2025 | Fund Letters | Broyhill Asset Management | FI | Fiserv | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | Clover, contrarian, financial technology, Fintech, payment processing, share repurchases, Value | Login |
| Sep 1, 2025 | Fund Letters | Broyhill Asset Management | IQV | IQVIA Holdings | Health Care | Life Sciences Tools & Services | Bull | NYSE | Biotech Services, Clinical trials, Cro, Healthcare Data, Healthcare Technology, network effects, Value | Login |
| May 1, 2025 | Fund Letters | Broyhill Asset Management | PM | Philip Morris International Inc. | Consumer Staples | Tobacco | Bull | NYSE | consumer staples, defensive, margin expansion, market share, Product mix shift, smoke-free products, tobacco, ZYN | Login |
| May 1, 2025 | Fund Letters | Broyhill Asset Management | BAX | Baxter International Inc. | Health Care | Health Care Equipment | Bull | NYSE | contrarian, Discount Valuation, Execution improvement, Healthcare Equipment, Medical devices, Operational Turnaround, Value | Login |
| May 1, 2025 | Fund Letters | Broyhill Asset Management | AVTR | Avantor Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | contrarian, life sciences, Pharmaceutical, Policy Uncertainty, Research Tools, Scientific progress, secular growth, Trough Valuation | Login |
| May 1, 2025 | Fund Letters | Broyhill Asset Management | SIX | Six Flags Entertainment Corporation | Consumer Discretionary | Leisure Facilities | Bull | NYSE | Balance Sheet Optimization, Consumer Discretionary, defensive characteristics, Merger Synergies, operational improvements, Recession-Resilient, theme parks | Login |
| May 1, 2025 | Fund Letters | Broyhill Asset Management | UBER | Uber Technologies Inc. | Communication Services | Interactive Media & Services | Bull | NYSE | capital allocation, food delivery, Free Cash Flow, market leadership, Ride Sharing, Scale Advantages, share repurchases, technology platform | Login |
| May 1, 2025 | Fund Letters | Broyhill Asset Management | DLTR | Dollar Tree Inc. | Consumer Staples | General Merchandise Stores | Bull | NASDAQ | consumer staples, discount retail, divestiture, Higher price points, margin expansion, operational focus, Strategic simplification, Value retail | Login |
| Feb 1, 2025 | Fund Letters | Broyhill Asset Management | NICE | NICE Ltd. | Software & Services | Application Software | Bull | NASDAQ | AI solutions, cloud contact center, customer experience, Digital transformation, Enterprise software, Israel, SaaS, turnaround, Value | Login |
| Feb 1, 2025 | Fund Letters | Broyhill Asset Management | EVO.ST | Evolution AB | Consumer Discretionary | Casinos & Gaming | Bull | Stockholm Stock Exchange | B2B software, Europe, Gaming Technology, iGaming, live casino, online gambling, Royalty Stream, Sweden, Value | Login |
| Feb 1, 2025 | Fund Letters | Broyhill Asset Management | SIX | Six Flags Entertainment Corporation | Consumer Discretionary | Leisure Facilities | Bull | NYSE | C-Corp Conversion, EBITDA, Free Cash Flow, Leisure, Merger Synergies, post-COVID recovery, Short squeeze, theme parks, Value | Login |
| Feb 1, 2025 | Fund Letters | Broyhill Asset Management | BAX | Baxter International Inc. | Health Care | Health Care Equipment | Bull | NYSE | defensive, Healthcare Equipment, Hurricane Impact, IV Solutions, manufacturing, Portfolio Restructuring, Temporary Disruption, Value | Login |
| Feb 1, 2025 | Fund Letters | Broyhill Asset Management | AVTR | Avantor Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | biopharma, Demand Stabilization, growth inflection, healthcare, Life Sciences Tools, Peer Discount, political risk, RFK Jr, Value | Login |
| Nov 1, 2024 | Fund Letters | Broyhill Asset Management | RTO.L | Rentokil Initial | Commercial & Professional Services | Environmental & Facilities Services | Bull | London Stock Exchange | acquisition, activist investor, Climate Tailwinds, Fragmented Industry, Integration, pest control, UK, Value | Login |
| Nov 1, 2024 | Fund Letters | Broyhill Asset Management | EVO.ST | Evolution AB | Consumer Discretionary | Casinos & Gaming | Bull | Nasdaq Stockholm | contrarian, growth, high-margin, live casino, Online-Gaming, Sweden, technology, US Legalization | Login |
| Nov 1, 2024 | Fund Letters | Broyhill Asset Management | NICE | Nice Ltd | Information Technology | Application Software | Bull | NASDAQ | Artificial Intelligence, Cloud software, Contact center, Contrarian View, revenue streams, SaaS, Technology Migration | Login |
| Aug 1, 2024 | Fund Letters | Broyhill Asset Management | AVTR | Avantor | Health Care | Life Sciences Tools & Services | Bull | NYSE | Bioprocessing, Cost Initiatives, EBITDA margins, Healthcare Technology, industry recovery, life sciences, Mission-Critical Products, Proprietary Content | Login |
| Aug 1, 2024 | Fund Letters | Broyhill Asset Management | BAX | Baxter International | Health Care | Health Care Equipment & Supplies | Bull | NYSE | Critical Care, Healthcare Equipment, Infusion Platform, Kidney Care, Medical devices, organic growth, Sum-of-parts, supply chain, valuation arbitrage | Login |
| Aug 1, 2024 | Fund Letters | Broyhill Asset Management | FI | Fiserv | Financials | Data Processing & Outsourced Services | Bull | NASDAQ | Clover Platform, cross-selling, Distribution Channels, financial technology, Fintech, GPV Growth, international expansion, market share, payment processing | Login |
| Aug 1, 2024 | Fund Letters | Broyhill Asset Management | FMS | Fresenius Medical Care | Health Care | Health Care Providers & Services | Bull | NYSE | asymmetric risk-reward, Dialysis Services, Fixed Cost Base, global leader, new management, operating leverage, Time Arbitrage, turnaround story, Volume Recovery | Login |
| Aug 1, 2024 | Fund Letters | Broyhill Asset Management | PM | Philip Morris International | Consumer Staples | Tobacco | Bull | NYSE | business transformation, Heated tobacco, margin expansion, Nicotine pouches, Reduced-Risk Products, smoke-free products, supply constraints, volume growth, Zyn Brand | Login |
| - | Fund Letters | Broyhill Asset Management | FISV | Fiserv Inc | Information Technology | Data Processing & Outsourced Services | Bull | NASDAQ | Clover Platform, financial technology, Fintech, Free Cash Flow, operating leverage, payment processing, SaaS, Share Buybacks | Login |
| - | Fund Letters | Broyhill Asset Management | AVTR | Avantor Inc | Health Care | Life Sciences Tools & Services | Bull | NYSE | conservative guidance, contrarian, deleveraging, life sciences, private equity, Recovery Play, Tools & Services, turnaround | Login |
| - | Fund Letters | Broyhill Asset Management | FIS | Fidelity National Information Services Inc | Information Technology | Data Processing & Outsourced Services | Bull | NYSE | Asset Sale, debt reduction, financial technology, Fintech, portfolio optimization, Self-Help Story, Share Buybacks, turnaround | Login |
| - | Fund Letters | Broyhill Asset Management | WMG | Warner Music Group Corp | Communication Services | Entertainment | Bull | NASDAQ | Artist roster, Content Ownership, entertainment, Intellectual Property, media, Music Industry, oligopoly, Streaming | Login |
| - | Fund Letters | Broyhill Asset Management | ATVI | Activision Blizzard, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | antitrust, Gaming, Merger Arbitrage, Microsoft Acquisition, Regulatory, technology, Video games | Login |
| - | Fund Letters | Broyhill Asset Management | 0TDG LN | Dollar General Corp. | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | consumer staples, Demographics, discount retail, Operational Turnaround, Rural Markets, Store growth, Value retail | Login |
| - | Fund Letters | Broyhill Asset Management | ATVI | Activision Blizzard, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | antitrust, Gaming, Merger Arbitrage, Microsoft Acquisition, Regulatory risk, Special situations | Login |
| - | Fund Letters | Broyhill Asset Management | 0TDG LN | Dollar General Corp. | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | discount retail, inventory management, Operational Turnaround, Rural Demographics, same-store sales, value investing | Login |
| TICKER | COMMENTARY |
|---|---|
| VVV | Valvoline was our largest contributor in the quarter. While the market spent its days hallucinating about the terminal value of artificial intelligence, Valvoline went on quietly changing oil, opening new stores, while moving more cars through its bays than any other competitor in the industry. Since we've owned it, shares have exhibited significantly more volatility than the business itself, but what matters is that the underlying unit economics are intact, while unit growth, service mix, and price continue moving in the same direction. |
| RTO.L | Rentokil was our second-largest contributor in the quarter, as market sentiment has begun its migration from Terminix is broken to Terminix is messy but fixable, which is the setup we underwrote when we established the position. Fundamentals are strengthening, organic growth is accelerating, and margins are improving, but the company has a long way to go to close the gap with US peer Rollins. |
| BALL | Ball Corporation rounded out our top three contributors during the quarter. When we initially acquired the position, our thesis centered around the company's post-aerospace-divestiture status, which left it a pure-play packaging company well positioned to return significant capital to investors. As the thesis played out, we sold into the re-rating and redeployed proceeds into more attractive opportunities. |
| RKT.L | Reckitt Benckiser was our largest detractor in the quarter. Shares were bludgeoned by a weak cold-and-flu season that temporarily depressed high-margin OTC sales, and overshadowed continued improvement in the company's core organic growth profile. While its seasonal business may be, well, seasonal, we view Reckitt's core business as a premier collection of consumer staples selling at a distressed multiple. Meanwhile, the market is ascribing approximately zero value to its Mead Johnson nutrition segment, which we believe will likely be sold once the litigation cloud is lifted. |
| IQV | IQVIA was our second-largest detractor despite fundamentals being far better than price action suggested. The stock has sold off because investors have convinced themselves that AI will compress economics faster than it drives demand. At the current price, we are more than willing to take the other side of that trade. Large pharma is structurally reliant on IQVIA's clinical trial architecture and proprietary data assets, and we think it is highly unlikely that Claude can automate away the FDA approval process. |
| AVTR | Avantor made our list of detractors for the last time in the first quarter. The destocking cycle has run far longer than we initially modeled, but the bigger issue was self-inflicted. Successive management teams failed to defend the share against Thermo Fisher. After swapping half of our position for Thermo last year, we took our remaining lumps and redeployed the capital into Sotera Health, where litigation fears have created an opportunity to own a mission-critical sterilization duopoly at a meaningful discount to intrinsic value. |
| SHC | We redeployed the capital into Sotera Health, where litigation fears have created an opportunity to own a mission-critical sterilization duopoly at a meaningful discount to intrinsic value. |
| PM | During the quarter, we booked a portion of our gains on Phillip Morris. |
| CACI | We exited CACI on strength as the stock's valuation reached the upper end of our estimates. |
| MSFT | We bought Microsoft as the stock's valuation declined to levels in line with the broader market. |
| SMWT | We initiated a new position in Smurfit WestRock with proceeds from Ball, as we suspect continued capacity tightening and additional pricing will drive mid-term results well above guidance and current consensus. |
| MAS | We established two new positions in the depressed housing industry – Masco and Floor and Décor, as we believe the normalized earnings power of both companies has increased significantly through market share gains and expense efficiencies captured during this extended downturn. |
| FND | We established two new positions in the depressed housing industry – Masco and Floor and Décor, as we believe the normalized earnings power of both companies has increased significantly through market share gains and expense efficiencies captured during this extended downturn. |
| LEG | We also began accumulating shares of Leggett & Platt, anticipating a higher bid from Somnigroup International, and fully exited when that bid emerged. |
| MC.PA | We added to positions on weakness, in both high-quality cyclicals – LVMH and Watches of Switzerland. |
| WOSG.L | We added to positions on weakness, in both high-quality cyclicals – LVMH and Watches of Switzerland. |
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