| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
FMI's Q1 2026 outlook addresses the significant market impact of the Iran war, which began February 28, 2026, causing the S&P 500 to decline 4.33% for the quarter. The conflict has created the largest oil supply disruption in history through the blockage of the Strait of Hormuz, pushing oil above $100 per barrel and raising recession or stagflation risks. While energy and defense stocks have outperformed, FMI's overweight exposure to housing-related sectors has hurt relative performance. The firm highlights three contrarian investment opportunities: Huron Consulting Group, which faces overblown AI disruption concerns; Booking Holdings, similarly pressured by AI fears despite strong competitive moats; and IMCD, facing cyclical headwinds expected to abate. FMI emphasizes their focus on business quality and discounted valuations, noting that historical analysis shows market reactions to military conflicts are typically sharp but short-lived. The firm remains committed to their 45-year investment process, believing that over full cycles, valuations and balance sheets matter, positioning for potential recovery when current cyclical weakness turns.
FMI maintains a contrarian value approach focused on high-quality businesses with robust balance sheets trading at discounted valuations, believing that stock market pullbacks create compelling long-term investment opportunities despite current geopolitical and economic uncertainty.
FMI remains committed to their investment process despite recent headwinds facing value-oriented and quality-focused approaches. They believe that over full cycles, valuations and balance sheets matter, and they are investing alongside their clients. The firm takes comfort in their portfolios being comprised of high-quality businesses with robust balance sheets trading at discounts to benchmarks.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 12 2026 | 2026 Q1 | BKNG, CARR, FBHS, FERG, FLU.MC, HAYW, HURN, HWDN.L, LPX, MAS | AI, Consulting, defense, energy, Geopolitical, Housing, Quality, value |
HURN BKNG IMCD.AS |
FMI navigates Q1 2026 market volatility from the Iran war through contrarian value investing in quality businesses at discounted valuations. Despite energy and defense outperformance hurting their housing-focused positioning, they identify compelling opportunities in consulting and travel companies facing overblown AI concerns, maintaining conviction in their time-tested investment process. |
| Jan 11 2026 | 2025 Q4 | ACN, CAT, HAYW, JPM, MSFT, NVDA, SMIN.L, UNP | AI, Bubble, capital intensity, Quality, small caps, technology, value | - | FMI maintains quality-focused discipline amid AI-driven speculation and junk rally. Firm questions sustainability of hyperscaler capital spending despite AI stocks driving 78% of S&P 500 returns. Quality businesses trading at discounts create attractive long-term opportunities. Portfolio emphasizes strong balance sheets, competitive advantages, and reasonable valuations while avoiding speculative excess. |
| Oct 14 2025 | 2025 Q3 | BDX, GRG.L, OMF | AI, Concentration, Defensive, Quality, Speculation, Valuations | GRG LN | FMI sees dangerous bubble conditions with record valuations, AI spending excess, and unprecedented market concentration amid weakening economic fundamentals. The firm maintains defensive positioning in quality businesses trading at discounts, believing the disconnect between soaring markets and deteriorating consumer confidence cannot persist. They expect volatility to create better opportunities for patient value investors. |
| Jun 30 2025 | 2025 Q2 | BDX, GRG.L, OMF | AI, international, Quality, small cap, Speculation, Valuations, value |
NSIT MAS OMF BDX GRG.L |
FMI sees bubble-like market conditions with record valuations and AI speculation reminiscent of past overbuilds. Economic fundamentals show weakness while investor exuberance reaches extremes. The firm maintains defensive positioning in quality businesses at attractive valuations, emphasizing downside protection while preparing to capitalize on opportunities if markets correct from current stretched levels. |
| Apr 14 2025 | 2025 Q1 | AHT.L, ALLE, D05.SI, EDEN.PA, FCFS, LLOY.L, SW.PA | defense, Europe, financials, tariffs, technology, value |
FCFS ALLE SW.PA |
FMI sees market excess unwinding with U.S. stocks pressured while international markets surge on European defense spending. The firm maintains value discipline, holding durable businesses at discount valuations amid elevated market risks. Trade policy uncertainty and technology valuation concerns create challenging backdrop, but FMI welcomes volatility as opportunity for active stock selection. |
| Dec 31 2024 | 2024 Q4 | ACGL, BKNG, BME.L, FERG, G, ICLR, ROG.SW, RXL.PA, SONY, SW.PA, UL, WEIR.L | healthcare, insurance, international, large cap, Travel, value |
ICLR ACGL |
FMI International Equity posted -7.41% in Q4 but achieved 2.72% YTD returns through concentrated large-cap international investing. The fund added ICON at cyclical trough valuations while exiting Arch Capital after strong performance. Portfolio maintains focus on durable franchises trading below intrinsic value with strong recurring revenue and quality management teams. |
| Sep 30 2024 | 2024 Q3 | BARN.SW, BKNG, BME.L, FERG.L, GRG.L, PHIA.AS, ROG.SW, RXL.PA, SIE.DE, SONY, SW.PA, UL | Automation, consumer, Europe, healthcare, large cap, value |
SIE.DE BARN.SW |
FMI International delivered 9.9% Q3 returns through disciplined value investing in quality European franchises. Added Siemens for its automation leadership and growth prospects at discounted valuations. Exited Barry Callebaut due to restructuring complexity. Portfolio maintains 33 concentrated holdings with strong active share, targeting durable businesses trading below intrinsic value. |
| Jun 30 2024 | 2024 Q2 | AMZN, BJ, BKNG, BME.L, D05.SI, DLTR, FERG.L, GOOGL, HSIC, KMX, MAS, META, MSFT, MU, NVDA, PHG, RHI, RYAAY, SKX, UL | AI, healthcare, international, Japan, Quality, small caps, Speculation, value |
HSIC DGX RYAAY |
FMI maintains quality-focused value approach amid extreme market speculation and AI bubble concerns. Sees opportunity in small cap quality companies trading at 20-year relative lows. Key holdings include healthcare distributors and European airlines facing temporary headwinds. Expects current speculative cycle to end with value investing returning to outperformance given historical precedent. |
| Apr 15 2024 | 2024 Q1 | 4403.T, 6841.T, ACGL, ATR, BECN, BRK.B, CSL, DCI, FBIN, GTES, MU, NVT, PHG, RHI, SAFRY, SCHW, SMIN.L, SN.L, SONY, SSD, WEIR.L | Construction, discount, international, Quality, small caps, Valuations, value |
GTES SCHW WEIR.L |
FMI sees a fundamental disconnect with S&P 500 at extreme valuations while Small Cap and International markets trade at deep discounts. The firm maintains concentrated, quality-focused portfolios with strong balance sheets and 3-5 year investment horizons. Despite macro headwinds including recession risks and elevated debt levels, FMI remains optimistic about opportunities in undervalued segments. |
| Jan 14 2024 | 2023 Q4 | 005930.KS, ACGL, ARW, BJ, CARR, DG, DGE.L, G, HEI, KMX, MAS, MU, RHI, RYAAY, SAP, SCHW, SKX, SLB, SSD, UL | Concentration, Debt, international, Quality, technology, Travel, value |
BJ CARR DGE.L |
FMI's International Strategy delivered strong 2023 returns by focusing on quality businesses at discount valuations while U.S. markets reached extreme concentration and historical valuation peaks. With record global debt levels and approaching refinancing walls creating systemic risks, the firm's disciplined value approach in international markets positions portfolios for potential outperformance as mean reversion pressures emerge. |
| Oct 21 2023 | 2023 Q3 | 005930.KS, BARN.SW, BJ, BKNG, CCEP, CDW, DG, DLTR, FBIN, HLI, IPG, LGIH, MU, OMC, SLB, SNN.L, SYY, VVV, ZION | China, Concentration, defensives, international, small caps, value |
VVV SYY CCEP |
FMI sees value opportunities amid extreme U.S. market concentration, with top S&P 500 stocks trading at 47% premiums. The firm added defensive positions while avoiding speculative growth stocks. China's property bubble collapse and European weakness create headwinds, but attractive valuations in small caps and international markets offer compelling long-term opportunities for disciplined value investors. |
| Jun 30 2023 | 2023 Q2 | AAPL, AMZN, BECN, BJ, BME.L, CDW, DG, FERG.L, G, GOOGL, KMX, MAS, MSFT, NTRS, NVDA, RHI, ROG.SW, SSD, SW.PA, TRTN | AI, Concentration, growth, international, small caps, technology, valuation, value |
ARHI CDW ROG.SW |
FMI sees current AI-driven market concentration as unsustainable speculation, creating compelling value opportunities in small caps and international markets. With profitable small caps at 40-year discounts to large caps and European stocks at all-time discounts to U.S. markets, the firm maintains conviction that normalizing interest rates will restore fundamental analysis advantages over passive momentum investing. |
| Mar 31 2023 | 2023 Q1 | BJ, BKNG, BMEB.PA, CSL, DG, FBIN, GOOGL, HOWG.L, NSIT, PLXS, PRI, RXL.PA, SCHW, SKX, SLB, SONY, SW.PA, ULVR.L, UNH, ZION | Banking, growth, Housing, international, Quality, Travel, value |
ZBRA SCHW AAPL|MSFT|NFLX|NVDA|UNH AEO|ASH|ASUR|AZZ|DCO|FA|FBIN|GHM|LEU|NSP|RRR|UTZ BKNG |
FMI added to banking positions during Q1 crisis volatility while expressing concern about growth stock speculation. The firm sees attractive housing opportunities despite near-term pressures, citing structural undersupply and demographic tailwinds. Travel recovery continues benefiting holdings like Booking Holdings. FMI maintains value discipline, focusing on quality businesses with strong balance sheets during market dislocations. |
| Oct 25 2022 | 2022 Q3 | AKZA NA, BME LN, HWDN LN, SW FP | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
DefenseDefense companies have outperformed broader market indices over the long term, benefiting from Russia's invasion of Ukraine in 2022 and the broadening Middle East conflict. The Iran war has become a major catalyst for defense spending, meaningfully altering spending trajectories for European defense and several other countries. |
Defense Spending Geopolitical Military Government Conflict |
OilThe Iran war has caused the blockage of the Strait of Hormuz, creating the largest supply disruption in global oil market history. Oil has eclipsed $100 per barrel with fears of significant further increases if the conflict continues, acting as a de facto tax on consumers and creating business headwinds. |
Energy Geopolitical Supply Chain Commodities Inflation | |
AIBoth Huron Consulting and Booking Holdings have sold off on artificial intelligence concerns, which FMI believes are overblown and misunderstood. FMI views AI as a revenue opportunity for consulting firms and believes AI tools are more likely to integrate existing capabilities rather than recreate them. |
Technology Disruption Consulting Travel Innovation | |
Home ImprovementFMI has overweight exposure to building materials, housing and construction, particularly the housing repair and remodel market. The median age of US housing stock continues to climb to 42 years, creating maintenance needs, while over 50% of homeowners have mortgage rates below 4%, creating a lock-in effect favoring renovation over selling. |
Housing Construction Demographics Rates Renovation | |
| 2025 Q4 |
AIFMI views AI as creating a speculative bubble with unsustainable capital spending and circular funding dynamics. They see tremendous long-term potential but question whether enormous capital expenditures will generate attractive returns, comparing current dynamics to the dot-com crash. The firm actively avoids AI infrastructure investments due to valuation concerns and structural issues. |
Artificial Intelligence Technology Valuations Bubble Infrastructure |
QualityFMI emphasizes their focus on quality businesses with sustainable competitive advantages, strong balance sheets, and returns above cost of capital. They note quality has underperformed in the current market environment but maintain confidence in their quality-focused approach for long-term outperformance. Quality value investing remains their core strategy despite recent headwinds. |
Value Investing Balance Sheet Competitive Advantage Returns Strategy | |
Small CapsThe firm notes small cap active managers have struggled during the current market rally, with low-quality companies dominating performance since April 2025. Companies that lose money, have low ROE, or lack sales have outperformed significantly. FMI sees this as a temporary anomaly that creates opportunities for their quality-focused small cap approach. |
Russell 2000 Active Management Performance Opportunity Underperformance | |
ValueFMI advocates for Quality Value investing, which combines cheap stocks with high quality metrics. Despite recent underperformance versus other value styles, they demonstrate Quality Value's superior long-term track record and downside protection. The firm believes current market conditions favor low-quality over high-quality investments, creating a temporary headwind for their approach. |
Quality Value Valuation Long Term Outperformance Downside Protection | |
| 2025 Q3 |
AIFMI expresses skepticism about the massive AI capital expenditure cycle, comparing it to the fiber optic overbuild of 2000. While acknowledging AI's long-term potential, they question whether the colossal spending will generate attractive returns, noting that AI monetization remains limited despite nearly $400 billion in annual capex from five mega cap tech companies. |
Artificial Intelligence Capex Technology Datacenter Monetization |
ValuationsThe firm highlights that current stock market valuations are among the most expensive in U.S. history, with eight traditional valuation metrics hitting record highs. They note the fundamental disconnect between record high stock markets and weakening global economic conditions, emphasizing their focus on quality businesses trading at discounts to benchmarks. |
Expensive Record Metrics Disconnect Quality | |
Risk AppetiteFMI observes classic speculative excess with record ETF inflows, technology sector gathering record weekly inflows, and U.S. household equity exposure climbing to all-time highs. They note the abundance of exuberance and high complacency, with investors displaying classic herd behavior and FOMO driving investment decisions. |
Speculation Inflows Exuberance Complacency FOMO | |
| 2025 Q2 |
AIWhile AI has tremendous long-term potential and could be revolutionary, FMI is skeptical about the colossal capital expenditure being deployed. They compare it to the fiber optic overbuild in 2000, where massive overbuilding led to overcapacity. Five mega cap tech companies are on pace to spend nearly $400 billion in capex, yet AI monetization remains limited with AI-native revenues believed to be less than $20 billion total. |
Artificial Intelligence Capex Datacenter Technology Overbuilding |
ValuationsFMI describes current markets as one of the most expensive in U.S. history, with eight traditional valuation metrics hitting the highest level on record over the last 125 years. They note that small cap, international, and value stocks trade at a sizeable discount to U.S. large cap growth, providing opportunities for quality businesses with strong balance sheets. |
Expensive Record Discount Quality Balance Sheet | |
Risk AppetiteThe letter describes abundant exuberance and high complacency in markets, with speculative excess evident across multiple areas. Global equity ETFs added a record $152 billion of inflows over 3 weeks, and U.S. households' exposure to public equities has climbed to a new all-time high, well above prior stock market peaks, indicating classic herd behavior. |
Speculation Exuberance Complacency Inflows Herd Behavior | |
| 2025 Q1 |
ValueFMI emphasizes value investing approach, noting they are encouraged to see value stocks outperforming growth stocks in both the U.S. and abroad in 2025. They take comfort holding portfolios of durable businesses trading at discount valuations. |
Discount Undervalued Outperformance Durable Quality |
Defense SpendingDefense was the top performing theme in Europe in Q1, up 69.7%. Germany announced defense and infrastructure spending that could exceed €1 trillion over the coming decade, with the EU proposing a €800 billion ReArm Europe plan. |
Military European Government Spending Geopolitical | |
Trade PolicyTrump's whipsaw approach to trade policies has created a difficult environment for companies to navigate. The risk of stagflation increases with widespread tariffs and could make for a challenging economic backdrop. |
Tariffs Protectionism Stagflation Uncertainty Policy | |
| 2024 Q4 |
CRO & CDMOICON is a global contract research organization providing outsourced clinical trial services to pharmaceutical and biotech clients. Following its merger with PRA Health Sciences in 2021, ICON is positioned as a high-quality contender with competitive differentiation. The firm has commercial relationships with 17 of the top 20 pharma companies and benefits from increasing trial complexity and sponsor efficiency needs. |
Clinical Trials Outsourcing Pharmaceuticals Biotech Drug Development |
| 2024 Q3 |
AutomationSiemens Digital Industries represents the strongest and most integrated automation portfolio globally. Management targets 5-7% annual organic revenue growth and high-single digit annual EPS growth through a cycle. The automation business has strong positions in growing markets with high barriers to entry. |
Industrial Digital Manufacturing Technology Growth |
| 2024 Q2 |
AIThe manager expresses skepticism about the AI bubble, noting that Sequoia Capital warns of speculative frenzies. While acknowledging AI's vast possibilities, they highlight the massive spending ($180 billion annually) with little revenue to show ($3.4 billion for OpenAI). They question whether companies will see adequate returns on their AI investments. |
Data Centers Semiconductors Cloud Nvidia Speculation |
ValueThe manager emphasizes their commitment to value investing despite current underperformance, noting value's 100+ year track record. They see the current environment where growth dominates as making them more excited about value's future prospects. Small cap quality companies now trade near the lowest level relative to large caps in over 20 years. |
Quality Small Caps Undervaluation Long-term Fundamentals | |
QualityThe focus on quality has paid off in recent years as M&A activity shrunk the number of quality small cap companies. The Russell 2000 now has over 40% of constituents losing money, making quality companies increasingly scarce. Quality companies with high return on capital employed win over the long-term despite periodic underperformance. |
Small Caps Profitability Returns Scarcity Long-term | |
| 2024 Q1 |
ValueFMI emphasizes investing in advantaged companies trading at discounts to intrinsic value for temporary reasons. All portfolios trade at sizeable discounts to core benchmarks while owning well-run, durable businesses. The firm targets companies with attractive risk/reward profiles through full cycles. |
Discount Intrinsic Risk-reward Durable Quality |
Small CapsSmall/SMID Cap stocks have lagged in recent years, making relative valuations more appealing. US Small Cap continues to trade at meaningful discount with relative valuations around two standard deviations below historical levels. The setup appears favorable for small cap investing. |
Undervalued Relative Discount Lagging Favorable | |
ConstructionFMI has built positions in companies exposed to housing and construction materials across portfolios, including Simpson Manufacturing, Fortune Brands, Beacon Roofing, nVent Electric, Carlisle, Carrier Global, Ferguson, Eaton, and Masco. These came under pressure due to cyclical concerns and rising interest rates. |
Housing Materials Cyclical Infrastructure Building | |
QualityFMI maintains focus on business quality, avoiding money-losing businesses which comprise roughly 40% of Russell 2000 constituents. The firm seeks companies with robust balance sheets, solid through-cycle growth prospects, and strong return profiles as pre-requisites for investment. |
Balance-sheet Profitable Through-cycle Returns Durable | |
| 2023 Q4 |
ValueFMI emphasizes value investing discipline amid elevated U.S. market valuations. The firm focuses on quality businesses trading at discount valuations with solid management teams and balance sheets, particularly in international markets where valuations are more reasonable than U.S. Large Cap. |
Discount Quality Valuations Margin of Safety Undervalued |
TravelThe firm has exposure to travel-related holdings including airlines and hospitality companies. They leaned into travel exposures when they declined in 2022, taking advantage of temporary dislocations within these segments that helped drive 2023 performance. |
Airlines Hospitality Recovery Dislocations Tourism | |
| 2023 Q3 |
ValueFMI emphasizes value investing opportunities across geographies, noting that global value stocks are trading at historically wide discounts to growth. The firm sees attractive relative values outside mega-cap companies, with their portfolios trading at significant discounts to benchmarks while investing in above-average businesses with strong balance sheets. |
Value Discount Growth Benchmarks Balance Sheets |
ChinaChina faces significant challenges with its property sector bubble finally popping, representing 25% of GDP and 70% of household wealth. Property sales are down 40% from 2021 peak, housing starts fell 60%, and prices dropped 33%. Additional headwinds include poor demographics, declining working-age population, slowing productivity growth, and rising tensions with the West. |
Property Demographics GDP Bubble Productivity | |
DefensivesDespite weakening economic backdrop, cyclical stocks have outperformed defensives over the past year. FMI sees attractive valuations among defensive stocks that have been left behind, adding new defensive positions including Valvoline, Sysco, and Coca-Cola Europacific Partners for their stability, growth potential, and pricing power. |
Cyclicals Stability Pricing Power Valuations Growth | |
| 2023 Q2 |
AIGenerative AI has lit the technology sector ablaze and has potential to be a game-changer, but is in early stages of adoption with overblown commercial revenue projections. The manager notes heavy technology investment in entertainment rather than productivity-enhancing applications, questioning whether AI will change the productivity trajectory. |
Generative AI Technology Productivity Revenue |
ValueValue investing has nearly 100 years of success but is currently in one of the worst periods on record due to suppressed interest rates, QE, and passive investing. The manager expresses great confidence that value will win out due to human nature and market cycles, with valuation premium for growth versus value near 50-year highs. |
Value Investing Growth Premium Market Cycles Valuation | |
Small CapsProfitable US Small Cap stocks are trading close to the largest discount to US Large Cap stocks in over 40 years. Quality has been hard to come by in Small Cap space with extensive M&A activity by private equity thinning out the opportunity set, requiring disciplined stock picking. |
Small Cap Valuation Discount Quality Stock Picking | |
| 2023 Q1 |
BankingThe firm discusses the global banking crisis including failures of Silicon Valley Bank, Signature Bank, and Silvergate Capital, along with Credit Suisse's rescue. They maintain positions in Zions Bancorporation and Charles Schwab despite volatility, believing both have sticky deposit bases and conservative balance sheets. The crisis highlights banking sector fragility and will likely lead to lower profitability and multiples going forward. |
Banking Credit Deposits Liquidity Risk |
GrowthThe firm expresses concern about the resurgence of growth and momentum investing, noting speculative fever in technology stocks. They highlight issues with adjusted earnings quality, particularly stock-based compensation that can exceed 20% of sales. The Nasdaq is up 17% year-to-date while ARK Innovation ETF gained 29%, representing a return to the growth trade that dominated the last decade. |
Growth Momentum Speculation Valuations Technology | |
HousingDespite near-term pressures from rising rates and inflation, the firm sees attractive long-term opportunities in housing-related investments. They cite structural undersupply since the Global Financial Crisis, aging housing stock, and demographic tailwinds from millennials entering homebuying age. The repair and remodel market is particularly attractive given homeowner balance sheet strength and locked-in low mortgage rates. |
Housing Construction Demographics Supply Repair | |
TravelThe firm highlights Booking Holdings as benefiting from travel recovery, particularly in Europe which represents over 70% of sales. Travel continues to recover with Booking taking market share from competitors. They view the current valuation of approximately 17 times normalized 2024 earnings as punitive given the long runway for growth as the industry fully recovers from COVID and Ukraine war impacts. |
Travel Recovery Europe Market Share Valuation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 12, 2026 | Fund Letters | FMI International Equity | HURN | Huron Consulting Group Inc. | Consulting Services | Research & Consulting Services | Bull | NASDAQ | AI, Consulting, Education, healthcare, M&A, margin expansion, recurring revenue, share repurchases | Login |
| Apr 12, 2026 | Fund Letters | FMI International Equity | BKNG | Booking Holdings Inc. | Travel Services | Internet & Direct Marketing Retail | Bull | NASDAQ | AI, asset-light, digital marketing, Free Cash Flow, network effects, Online Travel, Payments, Two-Sided Marketplace | Login |
| Apr 12, 2026 | Fund Letters | FMI International Equity | IMCD.AS | IMCD N.V. | Specialty Chemicals | Specialty Chemicals | Bull | Euronext Stock Exchange | Cyclical Recovery, Distribution, life sciences, M&A, multiple expansion, Scale Advantages, specialty chemicals, value-added services | Login |
| Oct 14, 2025 | Fund Letters | Jonathan T. Bloom | GRG LN | Greggs PLC | Consumer Discretionary | Restaurants | Bull | NYSE | Brand, cash flow, expansion, Food, growth, Margins, retail, valuation | Login |
| Sep 30, 2025 | Fund Letters | FMI International Equity | GRG.L | Greggs PLC | Consumer Discretionary | Restaurants | Bull | LSE | brand loyalty, Cash Flow Inflection, Food-on-the-go, market share, Restaurants, store expansion, Supply Chain Investment, UK retail, Value, vertically integrated | Login |
| Sep 30, 2025 | Fund Letters | FMI International Equity | OMF | OneMain Holdings Inc. | Financials | Consumer Finance | Bull | NYSE | Auto finance, consumer finance, credit cards, dividend, Nonprime, operating leverage, Personal Lending, Share Buybacks, turnaround, Value | Login |
| Sep 30, 2025 | Fund Letters | FMI International Equity | BDX | Becton Dickinson & Co. | Health Care | Health Care Equipment | Bull | NYSE | business separation, Consumables, defensive, Healthcare Equipment, Healthcare Utilization, Manufacturing Scale, margin expansion, Medical devices, oligopoly, recurring revenue | Login |
| Jun 30, 2025 | Fund Letters | Jonathan T. Bloom | NSIT | Insight Enterprises Inc. | Information Technology | Electronics & Computer Distribution | Bull | NASDAQ | buybacks, cloud, IT services, Modernization, scale | Login |
| Jun 30, 2025 | Fund Letters | Jonathan T. Bloom | MAS | Masco Corp. | Industrials | Building Products & Equipment | Bull | NYSE | brands, Free Cash Flow, Remodeling, ROIC, valuation | Login |
| Mar 31, 2025 | Fund Letters | FMI International Equity | FCFS | FirstCash Holdings, Inc. | Consumer Discretionary | Specialized Consumer Services | Bull | NASDAQ | Collateralized loans, consolidation, Counter-cyclical, defensive, Mexico, Pawn, regulatory barriers, Value | Login |
| Mar 31, 2025 | Fund Letters | FMI International Equity | ALLE | Allegion Public Limited Co. | Industrials | Building Products | Bull | NYSE | aftermarket, brands, Cyclical, Electronic Products, Moat, oligopoly, Security Hardware, Value | Login |
| Mar 31, 2025 | Fund Letters | FMI International Equity | SW.PA | Sodexo S.A. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | Euronext Paris | Catering, Diversified, Europe, Facilities Management, family-controlled, North America | Login |
| Dec 31, 2024 | Fund Letters | FMI International Equity | ICLR | ICON PLC | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Biotech, Clinical trials, Cro, Cyclical, drug development, healthcare, Merger Integration, Pharmaceutical Services, Value | Login |
| Dec 31, 2024 | Fund Letters | FMI International Equity | ACGL | Arch Capital Group Ltd. | Financials | Property & Casualty Insurance | Neutral | NASDAQ | capital allocation, Cycle Management, Insurance, Mortgage Insurance, P&C insurance, profit-taking, Reinsurance, specialty insurance | Login |
| Sep 30, 2024 | Fund Letters | FMI International Equity | SIE.DE | Siemens AG | Industrials | Industrial Conglomerates | Bull | XETRA | conglomerate, Digital Industries, discounted valuation, Equity, European, Industrial automation, transformation | Login |
| Sep 30, 2024 | Fund Letters | FMI International Equity | BARN.SW | Barry Callebaut AG | Consumer Staples | Food Products | Neutral | SIX Swiss Exchange | Chocolate Manufacturing, consumer staples, defensive, Equity, exit, Food Ingredients, restructuring, Swiss | Login |
| Jun 30, 2024 | Fund Letters | FMI International Equity | RYAAY | Ryanair Holdings PLC | Transportation | Airlines | Bull | NASDAQ | Airlines, Capacity growth, Cost advantage, Cyclical Recovery, Europe, Fleet Management, Low-Cost Carrier, market share | Login |
| Jun 30, 2024 | Fund Letters | FMI International Equity | DGX | Quest Diagnostics Inc. | Health Care Equipment & Services | Health Care Services | Bull | NYSE | Aging demographics, Cost advantage, defensive, diagnostics, Healthcare services, Laboratory Testing, market share, Reimbursement | Login |
| Jun 30, 2024 | Fund Letters | FMI International Equity | HSIC | Henry Schein Inc. | Health Care Equipment & Services | Health Care Distributors | Bull | NASDAQ | Aging demographics, Cyber Recovery, defensive, Dental, Healthcare Distribution, market leader, medical equipment, Software | Login |
| Mar 31, 2024 | Fund Letters | FMI International Equity | WEIR.L | Weir Group PLC | Capital Goods | Industrial Machinery | Bull | LSE | aftermarket services, Cyclical Resilience, Industrial Equipment, Mining Technology, Razor-Blade Model, UK, Value | Login |
| Mar 31, 2024 | Fund Letters | FMI International Equity | SCHW | Charles Schwab Corp. | Diversified Financials | Investment Banking & Brokerage | Bull | NYSE | banking, Cyclical Recovery, Discount Brokerage, economies of scale, financial services, market share gains, Value | Login |
| Mar 31, 2024 | Fund Letters | FMI International Equity | GTES | Gates Industrial Corp. PLC | Capital Goods | Industrial Machinery | Bull | NYSE | Automotive Aftermarket, Cyclical Recovery, industrial machinery, manufacturing, Power Transmission, Replacement Parts, Value | Login |
| Dec 31, 2023 | Fund Letters | FMI International Equity | BJ | BJ's Wholesale Club Holdings Inc. | Consumer Staples | Hypermarkets & Super Centers | Bull | NYSE | consumer staples, market share gains, membership model, recurring revenue, retail, turnaround, Value, Warehouse club | Login |
| Dec 31, 2023 | Fund Letters | FMI International Equity | CARR | Carrier Global Corp. | Industrials | Building Products | Bull | NYSE | heat pumps, HVAC, Industrials, oligopoly, portfolio transformation, spinoff, turnaround, Value | Login |
| Dec 31, 2023 | Fund Letters | FMI International Equity | DGE.L | Diageo PLC | Consumer Staples | Distillers & Vintners | Bull | LSE | brand portfolio, consumer staples, Emerging markets, market leader, premiumization, Spirits, UK, Value | Login |
| Sep 30, 2023 | Fund Letters | FMI International Equity | VVV | Valvoline Inc. | Consumer Discretionary | Specialty Retail | Bull | NYSE | Automotive Services, defensive, High returns, market share gains, Quick Lube, Specialty retail, Synthetic Oils, turnaround | Login |
| Sep 30, 2023 | Fund Letters | FMI International Equity | SYY | Sysco Corp. | Consumer Staples | Food Distributors | Bull | NYSE | consumer staples, defensive, dividend, economies of scale, food distribution, Foodservice, market share, Value | Login |
| Sep 30, 2023 | Fund Letters | FMI International Equity | CCEP | Coca-Cola Europacific Partners PLC | Consumer Staples | Soft Drinks | Bull | NASDAQ | Asia-Pacific, Beverages, Bottling, consumer staples, Defensive growth, franchise, Free Cash Flow, Value | Login |
| Jun 30, 2023 | Fund Letters | FMI International Equity | ARHI | Robert Half International Inc. | Commercial & Professional Services | Human Resource & Employment Services | Bull | NYSE | Accounting, AI, asset-light, Consulting, Cyclical, Human Resources, market leader, professional services, Staffing, technology, Value | Login |
| Jun 30, 2023 | Fund Letters | FMI International Equity | CDW | CDW Corporation | Technology Hardware & Equipment | Technology Distributors | Bull | NASDAQ | Cyclical, Distributor, growth, IT Solutions, market share, Reseller, Scale Advantages, services, Software, technology, Value | Login |
| Jun 30, 2023 | Fund Letters | FMI International Equity | ROG.SW | Roche Holding AG | Pharmaceuticals, Biotechnology & Life Sciences | Biotechnology | Bull | SIX Swiss Exchange | biotechnology, diagnostics, family control, First-in-Class, healthcare, pharmaceuticals, pipeline, R&D, Switzerland, Value | Login |
| Mar 31, 2023 | Fund Letters | FMI International Equity | SCHW | Charles Schwab Corp. | Financials | Investment Banking & Brokerage | Bull | NYSE | Balance Sheet Liquidity, Crisis Opportunity, Discount Brokerage, Diversified Client Base, FDIC Insurance, Retail Deposits, Value | Login |
| Mar 31, 2023 | Fund Letters | FMI International Equity | AAPL|MSFT|NFLX|NVDA|UNH | UnitedHealth Group Inc. | Health Care | Managed Health Care | Bull | NYSE | Defensive growth, Health Services, Healthcare Technology, managed care, Medicare Advantage, Optum, Scale Advantages | Login |
| Mar 31, 2023 | Fund Letters | FMI International Equity | AEO|ASH|ASUR|AZZ|DCO|FA|FBIN|GHM|LEU|NSP|RRR|UTZ | Fortune Brands Innovations Inc. | Industrials | Building Products | Bull | NYSE | Branded Portfolio, Building Products, defensive, market leader, Plumbing, Portfolio simplification, repair & remodel, Value | Login |
| Mar 31, 2023 | Fund Letters | FMI International Equity | BKNG | Booking Holdings Inc. | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Capital-light, European Recovery, high-ROIC, market share gains, network effects, Online Travel Agency, Travel Recovery | Login |
| Mar 31, 2023 | Fund Letters | FMI International Equity | ZBRA | Zions Bancorporation | Financials | Regional Banks | Bull | NASDAQ | Crisis Opportunity, Deposit Franchise, Liquidity Management, regional bank, SMB Banking, Value, West Coast | Login |
| TICKER | COMMENTARY |
|---|---|
| HURN | Huron is a leading consulting firm serving hospitals, health systems, and higher education institutions. Decades of successful engagements have earned the company deeply entrenched relationships within its core end markets. While these industries are not typically associated with rapid growth, Huron's value proposition is squarely aimed at helping organizations navigate an unrelenting stream of business model, regulatory, and technology challenges – pressures that have only intensified. Because these institutions tend to operate with lean internal resources, they consistently rely on outside expertise to work through complex issues, creating a durable and recurring source of demand for Huron's services. Management sees a substantial opportunity to deepen penetration within the existing customer base over the coming years, and the company's strategy of broadening its capabilities – both organically and through tuck-in acquisitions – should drive further wallet share gains. In aggregate, we believe Huron can grow its top line in the low double digits annually, comprised of mid-to-upper single-digit organic growth supplemented by a modest contribution from M&A. Combined with a commitment to margin expansion and a consistent track record of share repurchases, we see a credible path to low-to-mid teens earnings per share growth on an annualized basis. Concerns about AI disrupting the consulting model have pressured Huron's valuation and weighed on the shares. We believe this risk is largely misunderstood. Huron views AI as a revenue opportunity – one it is already pursuing by helping clients develop and implement AI roadmaps – while simultaneously leveraging the technology internally to reduce its own costs. Both efforts are underway. Further reinforcing the company's resilience, management noted that ~ 2/3rds of 2025 revenue was outcome-based, fixed-fee, or recurring in nature, and that its highly skilled consultants delivering mission-critical work for institutions facing disruption are considerably more insulated than other consulting models. At a low-teens forward earnings multiple, we believe the shares offer compelling value relative to the quality and durability of the underlying business. |
| BKNG | Booking is the largest online travel agency in the world. This is a network effect business model, where Booking acts as an aggregator of supply (independent hotels) on one side and demand (leisure travelers) on the other. This aggregation of fragmented supply and demand allows them to charge a healthy commission when a user books a room, which in turn allows them to outspend all other players on customer acquisition while still earning good returns. Booking is best-in-class at digital marketing, earning the highest returns on acquired traffic of all the online travel agencies. Booking has tremendous scale and an asset-light business model, generating very high returns on capital and free cash flow. Most of their revenue is generated from independent hotels that depend on Booking not just to deliver incremental guests, but also for cross-currency payments, merchandising, and customer service. Recently, shares have come under pressure over fears that AI will displace online travel agencies. We believe these concerns are overblown. AI is unlikely to recreate Booking's global network of hotels given the extreme fragmentation of supply and Booking's on-the-ground sales force. Booking's payments and customer service capabilities are also difficult to replicate, further protecting the business against new entrants. In our view, new AI tools are more likely to integrate Booking's existing inventory and capabilities into their models, rather than recreating these features themselves. If travel research shifts from traditional search to LLMs, Booking's historical expertise in digital marketing makes them well-positioned to win this traffic. Furthermore, AI should boost Booking's margins through efficiencies in customer service and marketing. At a mid-teens forward earnings multiple, we believe Booking shares are attractive on both a relative and absolute basis. |
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