| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 6.4% | - |
| 2025 |
|---|
| 5.9% |
Qualivian Investment Partners delivered a 5.9% net return in Q3 2025, outperforming benchmarks through their concentrated portfolio of Quality Compounders. The fund sold Copart due to increased competitive pressure from IAA and weakening fundamentals, redeploying proceeds into Brookfield Corp, a global alternative investment firm with over $1 trillion in assets under management. Top contributors included Alphabet, which delivered its first $100 billion quarter driven by AI-related cloud growth, O'Reilly Automotive with strong professional segment performance, and TJX Companies benefiting from their value proposition. The manager reinforced their investment philosophy by drawing parallels between racetrack betting markets and stock investing, demonstrating that quality stocks outperform similar to how betting favorites outperform long shots. They highlighted Amphenol as a potential addition, citing its mission-critical components business and expected 60% revenue growth in 2026 from AI data center demand. The strategy continues focusing on businesses with durable competitive advantages and high returns on invested capital.
Qualivian focuses on owning a concentrated portfolio of 15-25 high quality companies with wide moats, long reinvestment runways, and outstanding capital allocation that can compound capital at mid-teens rates over extended periods.
The manager expects sustainable runway for low-teens revenue and high-teens earnings growth for Amphenol over the next few years, driven by AI data center demand. They anticipate efficiency improvements for Watsco in 2026 following completion of refrigerant transition costs.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Dec 15 2025 | 2025 Q3 | APH, BN, BRO, CPRT, GOOGL, MA, MCO, ORLY, TJX, WSO | AI, compounders, long-term, Quality, technology, value | - | Qualivian delivered 5.9% in Q3 2025, rotating from Copart to Brookfield Corp while benefiting from strong AI-driven performance in Alphabet. The manager reinforced their Quality Compounder strategy through behavioral finance insights, highlighting how premium-priced quality stocks outperform over time. Amphenol represents their next target, positioned for significant AI data center growth. |
| Sep 30 2025 | 2025 Q2 | AJG, AMZN, AZO, BAC, BKNG, BRK.B, CPRT, META, MSFT, SPGI | Compounding, Concentration, long-term, Quality, technology, value |
SPGI AZO BKNG |
Qualivian delivered 5.3% in Q2 2025 as markets rotated into Technology after AI-driven volatility. The fund swapped S&P Global for AutoZone, benefited from strong performance in Meta, Microsoft, and Amazon driven by cloud and AI growth, while insurance-related holdings lagged on slowing pricing cycles. Focus remains on quality compounders with durable moats. |
| Jun 16 2025 | 2025 Q1 | AAPL, AJG, AMZN, AZO, BRK.B, BRO, CPRT, GOOGL, META, MSFT, MUSA, NVDA, ORLY, TSLA, URI, WSO | compounders, concentrated, long-term, Quality, value | AZO | Qualivian outperformed benchmarks by 5%+ in volatile Q1 2025 as markets rotated from tech to defensive sectors amid AI investment concerns. Firm sold cyclical positions to concentrate in insurance brokers and added AutoZone, benefiting from aging vehicle fleet dynamics. Management maintains long-term focus on quality compounders despite short-term volatility. |
| Mar 30 2025 | 2024 Q4 | AMZN, BRO, CASY, DHR, GOOGL, META, MSFT, URI, V | Capital Allocation, compounders, concentrated, long-term, Quality, value creation | BRO | Qualivian delivered 3.3% in Q4 through concentrated quality investing, owning 15-25 companies with wide moats and superior capital allocation. They trimmed mega-cap tech positions to add Casey's General Stores and United Rentals. Strong performance from Alphabet, Visa, and Amazon offset weakness in United Rentals and Microsoft. The fund emphasizes long-term time arbitrage advantages and expects mid-teens compounding from quality compounders. |
| Sep 30 2024 | 2024 Q3 | AMZN, BRK-B, GOOGL, MA, META, MUSA, ORLY, TJX, URI, V | Compounding, Concentration, long-term, Quality, value |
MUSA URI |
Qualivian runs a concentrated portfolio of 15-25 quality compounders, leveraging time arbitrage as their competitive edge in an increasingly short-term market. They outperformed benchmarks since inception through disciplined long-term investing. Q2 saw portfolio rotation into Murphy USA while trimming Berkshire and Meta. Infrastructure spending provides multi-year tailwinds for holdings like United Rentals. |
| Sep 30 2024 | 2024 Q2 | AMZN, BRK-B, GOOGL, MA, META, MUSA, ORLY, TJX, URI, V | Compounding, Concentration, long-term, Quality, value |
MUSA URI |
Qualivian runs a concentrated quality strategy, trimming Berkshire Hathaway and Meta to add Murphy USA in Q2. The letter emphasizes their competitive advantage through long-term investing in an increasingly short-term market. Government infrastructure spending and equipment rental penetration provide structural tailwinds, while macro uncertainty presents near-term risks to their quality compounder thesis. |
| Jul 22 2024 | 2024 Q1 | AJG, AMZN, BRO, DHR, GOOGL, JNJ, META, NOC, ORLY, SPGI, WSO | compounders, Concentration, large cap, Quality, technology, value | - | Qualivian's concentrated quality compounder strategy delivered strong Q1 outperformance through superior portfolio fundamentals. Key moves included exiting JNJ and NOC while adding insurance broker BRO. Meta led contributors with 27% revenue growth and strong advertising momentum, while Amazon showed AWS reacceleration. Portfolio maintains premium valuations justified by superior margins and growth characteristics versus broader market. |
| Apr 17 2024 | 2023 Q4 | WSO | compounders, Distribution, HVAC, long-term, Quality, value | WSO | Qualivian runs a concentrated fund targeting Quality Compounders with sustainable competitive advantages and high returns on capital. Their flagship holding Watsco dominates HVAC distribution with predictable replacement demand and founder-led management focused on long-term compounding. The strategy has outperformed benchmarks since 2017 inception through disciplined stock selection and capital preservation. |
| Oct 31 2023 | 2023 Q3 | - | Concentration, growth, large cap, Quality, value | - | Qualivian runs a concentrated 15-25 stock portfolio of quality compounders with competitive moats and strong cash generation. The strategy targets 3-5 year holding periods with experienced management teams focused on shareholder-friendly capital allocation. YTD performance of 17.5% net outpaces the S&P 500's 10.7% through disciplined fundamental research and low turnover approach. |
| Dec 7 2023 | 2023 Q2 | CPRT, DHR, HSY, LMT, META, MSFT, POOL, UHAL | - | - | |
| Mar 31 2023 | 2023 Q1 | - | - | - | Document contains only HTML/JavaScript code from a web application interface with no readable investment content, fund performance data, or financial commentary available for analysis. |
| Feb 16 2023 | 2022 Q4 | - | - | - | |
| Sep 12 2022 | 2022 Q3 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q3 |
QualityThe fund focuses on Quality Compounders - high quality companies with wide moats, long reinvestment runways, and outstanding capital allocation that compound capital at mid-teens rates. Research shows quality stocks outperform over extended periods, similar to betting on favorites versus long shots in racetrack markets. |
Quality Compounders Moats Capital allocation Returns |
AIAI is driving significant growth opportunities, particularly in data centers and communications infrastructure. Amphenol's Communications Solutions segment expects over 60% revenue growth in 2026 from AI data center demand, representing the single largest organic growth driver. |
AI Data centers Infrastructure Growth Semiconductors | |
| 2025 Q2 |
QualityThe fund focuses on concentrated portfolio of 15-25 understandable, high quality companies with wide moats, long reinvestment runways, and outstanding capital allocation. They seek businesses with durable competitive advantages, high returns on invested capital, and strong free cash flow generation. |
Moats Capital Allocation Free Cash Flow Returns Competitive Advantage |
AIThe market experienced volatility due to DeepSeek's announcement of developing a Generative AI Large Language Model at a fraction of the cost of US players. Technology companies like Meta, Microsoft, and Amazon benefited from AI-driven growth in their cloud and infrastructure businesses. |
Generative AI Large Language Model Cloud Infrastructure Technology | |
Online TravelBooking Holdings represents an oligopolistic position in the online travel agency space with strong network effects, benefiting from continued online booking penetration and travel demand growth at GDP+ rates of 4-5% annually. |
Travel Demand Online Booking Network Effects Platform GDP Growth | |
| 2025 Q1 |
AIMarket volatility sparked by DeepSeek announcement questioning returns on hyperscaler AI investments. Alphabet integrating AI into search through AI Overviews and AI Mode, showing encouraging reception and monetization. Hyperscalers expressing confidence in generative AI opportunities despite capital spending concerns. |
Generative AI Search Cloud Hyperscalers Capital Expenditure |
Insurance BrokersAJG and BRO are P&C insurance brokers serving small and medium businesses, benefiting from technology investment advantages and consolidation opportunities. Smaller brokers losing share due to inability to afford required technology investments in CRM and risk management software. |
P&C Insurance Technology Consolidation Middle Market | |
Auto AftermarketAutoZone operates in predictable aftermarket automotive parts industry with aging vehicle fleet driving demand. Company benefits from oligopolistic structure, cost advantages from scale, and superior capital allocation through share buybacks delivering 17% EPS growth. |
Automotive Parts Aging Fleet Market Share Capital Allocation | |
| 2024 Q4 |
QualityThe fund focuses on quality compounders with wide moats, long reinvestment runways, and outstanding capital allocation. They seek companies with durable competitive advantages, high returns on invested capital, and strong free cash flow generation. The investment criteria emphasizes businesses with pricing power, recurring revenue, and management with value-creating capital allocation history. |
Moats Capital Allocation Free Cash Flow Recurring Revenue Pricing Power |
Insurance BrokersBrown & Brown represents a consolidating middle market insurance brokerage with technology and service scale advantages over traditional local competitors. The company benefits from predictable demand for P&C insurance coverage and has a strong acquisition track record in a highly fragmented industry. BRO has grown revenue consistently above peers through superior sales execution and M&A. |
P&C Insurance Consolidation Technology Scale Acquisitions Fragmented Industry | |
CloudAmazon's AWS showed revenue growth reacceleration and margin recovery with operating margins improving to 36.9%. Microsoft's Azure grew an impressive 31% within Intelligent Cloud segment. Both companies demonstrate the ongoing strength and scalability of cloud infrastructure businesses with significant margin expansion potential. |
AWS Azure Margin Expansion Infrastructure Scalability | |
| 2024 Q3 |
QualityThe fund focuses on concentrated portfolio of 15-25 understandable companies with wide moats, long reinvestment runways, and outstanding capital allocation. They expect these quality compounders to compound capital at mid-teens rate and hold them for extended periods. |
Moats Compounding Capital allocation Reinvestment Concentration |
| 2024 Q2 |
QualityQualivian focuses on a concentrated portfolio of 15-25 understandable companies with wide moats, long reinvestment runways, and outstanding capital allocation. They seek quality compounders expected to compound capital at mid-teens rates and hold them for extended periods. |
Moats Compounding Capital allocation Reinvestment Concentration |
| 2024 Q1 |
QualityThe fund focuses on quality compounders with wide moats, long reinvestment runways, and outstanding capital allocation. Portfolio companies demonstrate superior margins, growth, and return characteristics compared to the S&P 500. The fund seeks companies expected to compound capital at mid-teens rates over extended periods. |
Moats Compounders Capital Allocation Margins Returns |
AIMultiple portfolio companies are investing heavily in generative AI applications. Meta, Microsoft, Alphabet, and Amazon all revised capex guidance upward to meet investment requirements for AI initiatives. The fund is monitoring heightened AI investment spending across technology holdings. |
Generative AI Capex Technology Investment Applications | |
CloudAmazon Web Services continued reacceleration with 17% growth in Q1 2024. The fund expects AWS to have new avenues of growth in scaling advertising and generative AI business in the years ahead. Cloud infrastructure remains a key growth driver for technology holdings. |
AWS Reacceleration Growth Infrastructure Scaling | |
AdvertisingMeta's ad revenues grew double digits across all geographies with ad impressions growing 20% and price per ad growing 6%. Amazon's advertising revenues grew 24%, which the fund considers an area of further opportunity. Digital advertising remains a strong growth vector. |
Digital Impressions Pricing Growth Opportunity | |
| 2023 Q4 |
QualityThe fund focuses exclusively on Quality Compounders - companies with competitive advantages, high returns on invested capital, and proven capital allocation track records. These businesses have sustainable pricing power, generate returns well in excess of their cost of capital, and compound shareholder equity at very high rates. |
ROIC Moats Compounding Capital Allocation Pricing Power |
HVACWatsco is highlighted as the leading HVAC distributor with 15% market share and significant competitive advantages from scale and technology investments. The company benefits from predictable replacement demand with 92 million of 115 million installed US units over 10 years old, providing a solid long-term growth runway. |
Distribution Replacement Cycle Technology Market Share | |
| 2023 Q3 |
QualityFocus on high-quality companies with durable competitive advantages, strong cash generation, and above-average earnings growth. Investment philosophy centers on quality compounders with experienced management teams that have demonstrated track records of profitable capital reinvestment and shareholder-friendly capital allocation. |
Compounders Moats Cash Generation Capital Allocation Franchise |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Sep 1, 2025 | Fund Letters | Qualivian Investment Partners | BKNG | Booking Holdings Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Accommodations, Asia, Europe, network effects, oligopoly, Online Travel, platform, Share Buybacks, Travel, Two-Sided Market | Login |
| Sep 1, 2025 | Fund Letters | Qualivian Investment Partners | SPGI | S&P Global Inc. | Financials | Financial Exchanges & Data | Bear | NYSE | acquisition, conglomerate, credit ratings, financial data, indices, Market Infrastructure, oligopoly | Login |
| Sep 1, 2025 | Fund Letters | Qualivian Investment Partners | AZO | AutoZone Inc. | Consumer Discretionary | Automotive Retail | Bull | NYSE | aftermarket, automotive parts, Free Cash Flow, oligopoly, retail, shareholder returns, Value | Login |
| Jun 1, 2025 | Fund Letters | Qualivian Investment Partners | AZO | AutoZone | Consumer Discretionary | Specialty Retail | Bull | NYSE | aftermarket, Aging Vehicle Fleet, automotive parts, Commercial, defensive, DIY, International Growth, market share expansion, negative working capital, oligopoly, share repurchases, Specialty retail, store expansion | Login |
| Mar 1, 2025 | Fund Letters | Qualivian Investment Partners | BRO | Brown & Brown | Financials | Insurance Brokers | Bull | NYSE | capital allocation, consolidation, founder-led, Insurance Broker, M&A, P&C insurance, quality compounder, recurring revenue, technology advantage | Login |
| Sep 1, 2024 | Fund Letters | Qualivian Investment Partners | URI | United Rentals | Industrials | Trading Companies & Distributors | Bull | NYSE | capital allocation, Construction Equipment, Cyclical, Equipment Rental, Industrial, infrastructure spending, market consolidation, oligopoly, Scale Advantages, share repurchases | Login |
| Sep 1, 2024 | Fund Letters | Qualivian Investment Partners | MUSA | Murphy USA | Consumer Discretionary | Specialty Retail | Bull | NYSE | Consumer Discretionary, convenience stores, Fuel Stations, organic growth, quality compounder, share repurchases, Specialty retail | Login |
| Sep 1, 2024 | Fund Letters | Qualivian Investment Partners | MUSA | Murphy USA | Consumer Discretionary | Specialty Retail | Bull | NYSE | EPS growth, Gasoline Stations, organic growth, quality compounder, Revenue Growth, share repurchases, Specialty retail | Login |
| Sep 1, 2024 | Fund Letters | Qualivian Investment Partners | URI | United Rentals | Industrials | Trading Companies & Distributors | Bull | NYSE | construction, Cyclical, Equipment Rental, FCF Generation, infrastructure spending, market consolidation, oligopoly, Scale Advantages, share repurchases, technology platform | Login |
| Dec 31, 2023 | Fund Letters | Qualivian Investment Partners | WSO | Watsco Inc | Capital Goods | Trading Companies & Distributors | Bull | NYSE | asset-light, consolidation, Distributor, founder-led, high-ROIC, HVAC, market leader, Replacement Cycle, technology platform | Login |
| TICKER | COMMENTARY |
|---|---|
| CPRT | Copart Inc. (CPRT) provides online auto auctions and vehicle remarketing services. It offers vehicle sellers, mostly comprised of P&C insurance companies, a full range of services to process and sell vehicles (usually autos involved in a crash and deemed a total loss) primarily over the internet through proprietary online auction technology. The online auctions sector is a duopoly in which CPRT is the larger and better managed player. The other main player, IAA, was purchased by RB Global (RBA). Armed with RB Global's deeper pockets, IAA has been more aggressive in the past year with its pricing to gain market share from CPRT and it succeeded with a national insurance carrier switching to IAA. Furthermore, the spike in auto insurance over the past 4–5 years has resulted in an increase in uninsured and under-insured motorists, which has resulted in lower volumes coming through CPRT's insurance vertical (80% of revs), resulting in CPRT's revenue and earnings growth decelerating to just below 10% in the past 12 months. With less rational competition and a weakening fundamental backdrop, we decided to exit CPRT and redeploy proceeds into Brookfield Corp. |
| BN | Brookfield Corp. (BN) is a leading Canadian-based global alternative investment firm that owns and operates real assets that form the backbone of the global economy, while also managing a massive pool of third-party capital. With over $1 trillion in assets under management (AUM), Brookfield's operations are divided into three core businesses: 1) Asset Management – includes BN's controlling interest in the publicly traded Brookfield Asset Management (BAM), which generates stable, high-margin, fee-related earnings from managing capital for institutional and retail investors; 2) Wealth Solutions – represents a newer, high-growth business that acquires and manages long-duration, predictable insurance liabilities (e.g., annuity policies) and investing the resulting float which provides BN with a source of permanent, sticky capital to invest across its ecosystem; and 3) Operating Businesses – the physical assets and businesses that BN directly owns and operates, providing stable, recurring, and often inflation-linked cash flows, including Renewable Power and Transition (hydroelectric, wind, solar, and utility-scale power generation), Infrastructure (utilities, transportation such as ports and rail, midstream energy, and next-generation data infrastructure, e.g., data centers, fiber optic), Private Equity, and Real Estate. Brookfield Corporation has compounded distributable earnings in the low- to mid-teens over the long term. It has generated a 14% annualized total shareholder return over the past 20 years via growth in its disciplined and opportunistic capital allocation and the growth in the underlying earnings of its operating businesses. |
| GOOGL | Alphabet's Q3 2025 results saw the company deliver its first-ever $100 billion-plus quarter, with consolidated revenue increasing 16% year-over-year to $102.3 billion, and diluted earnings per share (EPS) rising 35% to $2.87. This record performance was driven by double-digit growth across all major segments, including Google Search and YouTube ads, with Google Cloud revenues accelerating 34% due to strong enterprise and AI-related customer demand. |
| ORLY | O'Reilly Automotive delivered strong Q3 2025 results, with comparable store sales increasing 5.6% and diluted earnings per share (EPS) growing 12% to $0.85, both exceeding analysts' expectations. The company's professional segment was the primary driver of growth, achieving over a 10% increase in comparable store sales, though the do-it-yourself (DIY) segment experienced some modest pressure in the quarter. |
| TJX | TJX Companies reported strong results for fiscal Q3 2026 (calendar Q3 2025), with consolidated comparable sales increasing 5% and diluted EPS growing 12% to $1.28, both exceeding analysts' expectations. The off-price retailer's value proposition resonated with consumers, driving strong performance across all divisions, including a 6% comp sales increase at Marmaxx (T.J. Maxx and Marshalls) and leading the company to raise its full-year guidance. |
| BRO | Brown & Brown (BRO) reported strong Q3 2025 results, with total revenues increasing 35.4%, largely driven by the strategic acquisition of Assured Partners. The company's adjusted diluted net income per share was $1.05, surpassing analyst expectations. However, these headline positives were tempered by declining margins due to integration costs, and a moderation in organic revenue growth to 3.5%. The P&C market commentary was mixed, highlighting softening in property rates (down 15–30% for E&S CAT) but hardening in casualty and auto (up 5–10% or more). |
| WSO | Watsco's Q3 2025 results showed a mixed performance, with revenue and EPS missing analysts' estimates (declining 4% and 6% year-over-year, respectively) due to challenging market conditions and lower equipment unit volumes. Positively, the company achieved record gross profit margin of 27.5% due to pricing gains, and record operating cash flow of $355 million while maintaining a debt-free balance sheet. Management noted that the substantial, one-time costs associated with the industry's complex A2L refrigerant transition were now largely complete, setting the stage for anticipated efficiency improvements in 2026. They also indicated the company will be hosting an Investor Day on Dec. 13 to highlight key growth initiatives the company is undertaking to reaccelerate growth in 2026. |
| MCO | Moody's (MCO) reported a very strong quarter with adjusted EPS of $3.92, beating expectations by nearly 7%, and record total revenue of $2.01 billion, up 11% year-over-year. Management delivered an impressive 500 bp improvement in adjusted operating margins to 53%, largely on the strength of strong issuance activity across its higher margin Moody's Investor Service (MIS) segment. |
| MA | As an example, one of the stocks in Qualivian's portfolio since inception has been Mastercard. It is an oligopolistic player in the payments industry with consistent earnings growth, high returns on capital, and a long runway for future growth. It was clearly a high-quality bet when we purchased it in 2017, and the market recognized this as it was trading at a premium P/E multiple of 28.6X NTM earnings or 1.53X the S&P's forward multiple of 18.7X at the time. Despite its premium multiple, it went on to give a total cumulative shareholder return of 275.4% (or 18.0% annualized), which outperformed the S&P 500's total cumulative and annualized return of 194.8% and 14.5% respectively. |
| APH | APH is an industrial giant whose competitive moat derives from selling components that are low cost but mission critical for customers' products to function, creating extremely high customer switching costs and pricing power. The company is a proven compounder, structurally raising its profit margins while expanding its market share through both organic growth and accretive, disciplined mergers and acquisitions (M&A). Amphenol is a global leader in the design, manufacture, and marketing of high-performance connectors, sensors, and interconnect systems. With a century-long history, the company has built one of the most diversified revenue streams in the industrial technology sector, spanning: IT and Data Communications, Mobile Devices, Industrial (heavy equipment, factory automation), Automotive, and Military/Aerospace segments. APH has compounded revenues at 11.0% (2/3 organic and 1/3 via acquisitions) and EPS at 13% per annum over the past 10 years. Going forward we see sustainable runway for low-teens revenue and high-teens earnings growth for the next few years. We expect to see over 60% revenue growth in 2026 from AI data center demand, which is significantly buttressing APH's CS and overall organic profile. APH is currently trading at 35.2X NTM P/E (a substantial premium to its 10-year average of 26.9X) and 1.56X NTM relative P/E to the S&P 500, a slight premium to its 10-year average of 1.41X. Its FCF yield (2.4% on FY2025 estimates) plus our forecast FCF growth in mid- to high-teens suggest an expected annualized return of high-teens to low-twenties % over the coming years. |
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