The London Company Small-Mid Cap

Investor Summary

The London Company of Virginia, LLC was founded in 1994 by Stephen M. Goddard, CFA, who serves as Founder, Chairman, Chief Investment Officer, and Co-Lead Portfolio Manager with over 35 years of experience in investment and finance. Goddard holds a B.A. in Economics from the Virginia Military Institute and an MBA with a finance concentration from the University of Richmond, and serves on various foundation boards including VMI Foundation and MCV Foundation. J. Brian Campbell, CFA serves as Principal and Co-Lead Portfolio Manager with over 25 years of industry experience, joining The London Company in August 2010 after previous roles at INVESCO-National Asset Management and Hilliard Lyons Capital Management. Campbell holds a B.B.A. in Finance with honors from the University of Kentucky and an MBA from Indiana University's Kelley School of Business. The firm manages $16.0 billion in total discretionary assets under management as of December 31, 2024, and has been recognized as one of Pensions & Investments' Best Places to Work in Money Management for four consecutive years through 2025. The SMID Cap strategy was incepted on March 31, 2009, and targets 25-35 high-quality, value-oriented small to mid-cap equities benchmarked against the Russell 2500 Index.

Fund Strategy

The London Company's investment philosophy is built upon three foundational principles: Committed to Downside Protection as the foundation of their approach to mitigate downside risk with the goal of long-term outperformance and lower volatility. Focused on Facts to Reduce Speculation, forming investment thesis based on what is true today using their Balance Sheet Optimization approach to valuation rather than trying to predict the future. Long-Term Oriented Investors who invest in a select number of high-quality companies through the lens of a business owner, as if buying the entire company to hold indefinitely. Their proprietary Balance Sheet Optimization (BSO) approach assesses the strength and flexibility of the balance sheet to create a more concrete margin of safety. The firm focuses on companies with sustainably high and improving returns on capital and strong balance sheets that offer financial flexibility. Their investment process incorporates valuation discipline using BSO to estimate intrinsic value conservatively while avoiding overpriced stocks. The approach results in high active share with 25-35 holdings, long-term orientation with low turnover around 20%, and 4-5 year average holding periods.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	0.8%	-6.6%

2025
0.8%

Executive Summary

The London Company's SMID Cap portfolio returned 0.8% net in Q3 2025, underperforming the Russell 2500's 9.0% gain as their quality-focused approach faced headwinds during a high beta rally. The portfolio's emphasis on low volatility, high quality companies was out of favor as markets rewarded speculation over stability following Fed rate cuts and policy optimism. Top contributors included Armstrong World Industries, SomnigroupInternational, and NewMarket Corporation, while Waters Corporation, Casella Waste Systems, and Jack Henry & Associates detracted from performance. The manager initiated ACI Worldwide, exited Reynolds Consumer Products and Broadridge Financial Solutions, and adjusted positions in Deckers Outdoor and Armstrong World Industries. Looking ahead, they acknowledge economic resilience but cite concerns around housing, tariffs, and labor markets. With valuations stretched and speculation abundant, they maintain conviction in their Quality-at-a-Reasonable-Price discipline, believing quality factors will regain leadership when fundamentals reassert themselves and their approach will protect capital during frothy periods while delivering steadier results when cycles turn.

Forward Outlook

Despite uncertainty, the U.S. economy has displayed impressive resilience. The manager expects quality factors to regain leadership when fundamentals reassert themselves, and believes their Quality-at-a-Reasonable-Price discipline will protect capital during frothy periods while delivering steadier results when the cycle turns.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Oct 28 2025	2025 Q3	ACIW, AWI, BR, CWST, DECK, JKHY, NEU, REYN, SGI, WAT	Fed Cuts, high beta, Quality, SMID Cap, value, volatility	-	London Company's SMID Cap portfolio underperformed in Q3 as their quality-focused approach faced headwinds during a high beta rally driven by Fed cuts and policy optimism. Despite near-term challenges from stretched valuations and speculation, they maintain conviction in their Quality-at-a-Reasonable-Price discipline, expecting quality factors to regain leadership when fundamentals reassert themselves.
Jul 20 2025	2025 Q2	AER, AWI, CNNE, MUSA, NEU, SAIA, SGI, WTM, ZBRA	Freight, Logistics, Quality, SMID Cap, tariffs, Trade Policy, volatility	NEU AWI	London Company's SMID Cap portfolio underperformed in Q2 as Quality and Low Volatility factors turned into headwinds during the risk-on rally. The manager maintains conviction in their high-quality approach despite near-term headwinds, positioning for an environment of elevated policy risks including tariff uncertainty and fragile global growth.
Apr 15 2024	2025 Q1	AER, BR, CABO, CACC, CHDN, DECK, SAIA, THG, ZBRA	Defensive, Quality, Recession, SMID Cap, tariffs, value	SAIA	London Company's SMID Cap portfolio outperformed in Q1 correction through Quality stock selection despite tariff-driven market weakness. Strong contributors in aircraft leasing, insurance, and consumer finance offset detractors in gaming, technology, and footwear. With elevated recession risks and tariff uncertainty ahead, their defensive Quality approach positions well for potential economic deceleration where Quality factors historically excel.
Jan 7 2025	2024 Q4	AER, AWI, BR, CHDN, DECK, ENTG, MUSA, POST, WAT, WTM	concentrated, downside protection, Quality, SMID Cap, value	-	The London Company's SMID Cap strategy delivers superior risk-adjusted returns through concentrated investing in high-quality companies with strong returns on capital and balance sheets. The approach emphasizes downside protection and has outperformed the Russell 2500 since 2009 with lower volatility, demonstrating effective quality-value investing in the small-to-mid cap space.
Oct 2 2024	2024 Q3	AWI, ENTG, LW, WAT, WTM, ZBRA	Balance Sheet, Quality, rates, small caps, value	WAT ZBRA AWI ENTG LW WTM	London Company's SMID Cap strategy underperformed in Q3 as their quality focus temporarily hindered performance during the rotation to lower-quality, rate-sensitive names. The firm maintains conviction in their balance sheet strength emphasis, expecting it to become a differentiator as debt maturities approach and market conditions potentially deteriorate from current elevated valuations.
Jul 22 2024	2024 Q2	AER, BRKR, CHDN, DAVA, DECK, HAS, LW, MBI, MUSA, NEU, QLYS, TREX	Consumer Staples, cybersecurity, healthcare, Quality, small caps, value	BRKR QLYS	London Company's SMID Cap portfolio underperformed in Q2 as quality factors faced headwinds in a momentum-driven market. Despite Fed rate cut expectations, the manager maintains caution due to high valuations and market concentration. The strategy continues focusing on high-quality businesses with strong balance sheets at reasonable prices for long-term compounding.
May 7 2024	2024 Q1	AWI, CABO, CHDN, DAVA, DECK, LANC, TREX, TTC	Balance Sheets, cash flow, Quality, rates, SMID Cap, value	DECK AWI LANC DAVA CHDN CABO TTC	London Company's SMID Cap strategy outperformed through quality-focused selection, gaining 9.2% versus 6.9% for the Russell 2500. Strong balance sheets and net cash positions drove outperformance in a challenging environment for smaller companies. Despite cautious market outlook due to high valuations, the manager sees opportunities in quality operators with durable cash flows as rates begin declining.
Apr 20 2023	2023 Q1	BR, CHDN, ENTG, IAA, JKHY, LW, MBI, MUSA, RBA, STOR	Banking, Quality, Recession, semiconductors, SMID Cap, value	CHDN ABLLW ENTG AER\|AWI\|MUSA\|NEU\|SAIA\|WTM	London Company's SMID Cap portfolio outperformed in Q1 through quality stock selection and avoiding regional banks. The manager focuses on companies with durable cash flows and strong balance sheets to navigate potential recession risks and higher cost of capital. While cautious on macro outlook, they believe their quality approach provides competitive advantage in volatile environment.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Oct 28 2025

2025 Q3

ACIW, AWI, BR, CWST, DECK, JKHY, NEU, REYN, SGI, WAT

Fed Cuts, high beta, Quality, SMID Cap, value, volatility

London Company's SMID Cap portfolio underperformed in Q3 as their quality-focused approach faced headwinds during a high beta rally driven by Fed cuts and policy optimism. Despite near-term challenges from stretched valuations and speculation, they maintain conviction in their Quality-at-a-Reasonable-Price discipline, expecting quality factors to regain leadership when fundamentals reassert themselves.

Jul 20 2025

2025 Q2

AER, AWI, CNNE, MUSA, NEU, SAIA, SGI, WTM, ZBRA

Freight, Logistics, Quality, SMID Cap, tariffs, Trade Policy, volatility

NEU
AWI

London Company's SMID Cap portfolio underperformed in Q2 as Quality and Low Volatility factors turned into headwinds during the risk-on rally. The manager maintains conviction in their high-quality approach despite near-term headwinds, positioning for an environment of elevated policy risks including tariff uncertainty and fragile global growth.

Apr 15 2024

2025 Q1

AER, BR, CABO, CACC, CHDN, DECK, SAIA, THG, ZBRA

Defensive, Quality, Recession, SMID Cap, tariffs, value

SAIA

London Company's SMID Cap portfolio outperformed in Q1 correction through Quality stock selection despite tariff-driven market weakness. Strong contributors in aircraft leasing, insurance, and consumer finance offset detractors in gaming, technology, and footwear. With elevated recession risks and tariff uncertainty ahead, their defensive Quality approach positions well for potential economic deceleration where Quality factors historically excel.

Jan 7 2025

2024 Q4

AER, AWI, BR, CHDN, DECK, ENTG, MUSA, POST, WAT, WTM

concentrated, downside protection, Quality, SMID Cap, value

The London Company's SMID Cap strategy delivers superior risk-adjusted returns through concentrated investing in high-quality companies with strong returns on capital and balance sheets. The approach emphasizes downside protection and has outperformed the Russell 2500 since 2009 with lower volatility, demonstrating effective quality-value investing in the small-to-mid cap space.

Oct 2 2024

2024 Q3

AWI, ENTG, LW, WAT, WTM, ZBRA

Balance Sheet, Quality, rates, small caps, value

WAT
ZBRA
AWI
ENTG
LW
WTM

London Company's SMID Cap strategy underperformed in Q3 as their quality focus temporarily hindered performance during the rotation to lower-quality, rate-sensitive names. The firm maintains conviction in their balance sheet strength emphasis, expecting it to become a differentiator as debt maturities approach and market conditions potentially deteriorate from current elevated valuations.

Jul 22 2024

2024 Q2

AER, BRKR, CHDN, DAVA, DECK, HAS, LW, MBI, MUSA, NEU, QLYS, TREX

Consumer Staples, cybersecurity, healthcare, Quality, small caps, value

BRKR
QLYS

London Company's SMID Cap portfolio underperformed in Q2 as quality factors faced headwinds in a momentum-driven market. Despite Fed rate cut expectations, the manager maintains caution due to high valuations and market concentration. The strategy continues focusing on high-quality businesses with strong balance sheets at reasonable prices for long-term compounding.

May 7 2024

2024 Q1

AWI, CABO, CHDN, DAVA, DECK, LANC, TREX, TTC

Balance Sheets, cash flow, Quality, rates, SMID Cap, value

DECK
AWI
LANC
DAVA
CHDN
CABO
TTC

London Company's SMID Cap strategy outperformed through quality-focused selection, gaining 9.2% versus 6.9% for the Russell 2500. Strong balance sheets and net cash positions drove outperformance in a challenging environment for smaller companies. Despite cautious market outlook due to high valuations, the manager sees opportunities in quality operators with durable cash flows as rates begin declining.

Apr 20 2023

2023 Q1

BR, CHDN, ENTG, IAA, JKHY, LW, MBI, MUSA, RBA, STOR

Banking, Quality, Recession, semiconductors, SMID Cap, value

CHDN
ABLLW
ENTG
AER|AWI|MUSA|NEU|SAIA|WTM

London Company's SMID Cap portfolio outperformed in Q1 through quality stock selection and avoiding regional banks. The manager focuses on companies with durable cash flows and strong balance sheets to navigate potential recession risks and higher cost of capital. While cautious on macro outlook, they believe their quality approach provides competitive advantage in volatile environment.

QUARTER	THEMES	TAGS
2025 Q3	Quality The manager emphasizes their Quality-at-a-Reasonable-Price discipline, noting that quality factors were headwinds during the high beta rally but historically regain leadership when fundamentals reassert themselves. They remain confident in holdings with durable advantages, strong balance sheets, and steady free cash flow.	Quality Balance Sheets Free Cash Flow Durable Advantages Fundamentals
	Value The portfolio focuses on attractively valued businesses, with the manager noting that markets often reward speed and speculation over stability after policy shifts. They believe focusing on resilient, attractively valued businesses remains the best path to compounding wealth across full cycles.	Value Attractive Valuations Reasonable Price Intrinsic Value Compounding
2025 Q2	Quality The manager emphasizes their high-Quality, low-Volatility orientation as positioning them well for an environment of elevated policy risks and fragile global growth. They focus on company quality, sustainable returns on capital, and resilience across economic scenarios.	Quality Resilience Returns Capital Volatility
	Trade Policy Elevated uncertainty exists with high likelihood of greater tariffs being announced in the weeks ahead. Consumer confidence has declined due to risks of additional tariffs, and the effect of tariffs on both inflation and the broader economy could change Fed plans.	Tariffs Trade Policy Uncertainty Inflation
	Logistics The freight recession continues for almost its third year, affecting companies like Saia. Despite industry headwinds, the manager remains convicted in logistics companies with solid balance sheets and strong network growth plans.	Freight Logistics Transportation Networks Recession
2025 Q1	Quality The manager emphasizes their Quality factor approach, noting that Quality factors have historically posted their best relative returns during periods of decelerating growth and through recessions. They believe they may be late in the economic cycle, which bodes well for Quality factors over the next few years.	Quality Defensive Volatility Recession
	Value Value styles led Growth during the quarter as broader market weakness allowed for a broadening of market leadership. Value and Yield factors posted the strongest returns during the period, benefiting the portfolio's positioning.	Value Yield Outperformance Leadership
	Trade Policy Elevated uncertainty exists around tariff policy, with high likelihood of greater tariffs being announced. The effect of tariffs on both inflation and the broader economy could change Federal Reserve monetary policy plans. Consumer confidence has declined due to tariff risks.	Tariffs Uncertainty Inflation Policy
2024 Q4	Quality The fund focuses on high-quality companies with sustainably high and improving returns on capital and strong balance sheets. Portfolio companies demonstrate superior financial metrics with 16.7% pre-tax ROC versus 8.4% for the Russell 2500 and lower leverage at 2.1x net debt/EBITDA versus 3.4x for the benchmark.	Returns Balance Sheet Financial Metrics Leverage Profitability
2024 Q3	Quality The London Company emphasizes balance sheet strength and quality factors as core investment criteria. Their focus on quality became a temporary headwind during Q3 as lower-quality, highly leveraged companies outperformed due to rate relief expectations. The firm believes balance sheet strength will become a differentiator as corporate debt maturities approach.	Balance Sheet Fundamentals Margin of Safety Diversification
	Rates The Federal Reserve delivered a larger-than-expected rate cut during Q3, marking a significant shift in monetary policy. Lower rates supported market sentiment and multiples in the short term, particularly benefiting rate-sensitive sectors. However, rates remain in restrictive territory and policy impacts may take up to two years to affect economic data.	Fed Policy Rate Cuts Monetary Policy Rate Sensitive
	Small Caps Q3 saw notable rotation to small cap and value styles away from large cap growth, fostering broader market participation. The portfolio operates in the small-to-mid cap space with weighted market capitalization higher than small cap but within major domestic SMID indices. Performance trailed the Russell 2500 Index during the quarter.	Russell 2500 SMID Cap Market Rotation Style Rotation
2024 Q2	Quality The portfolio focuses on high quality businesses with strong balance sheets, high ROIC, and improving margins. The manager emphasizes owning great businesses at reasonable prices and allowing them to compound over the long term.	Quality ROIC Balance Sheet Margins Compounding
	Value The manager maintains a value-oriented approach, seeking businesses at reasonable prices despite market headwinds facing value factors. They believe in owning great businesses at reasonable prices as a winning long-term strategy.	Value Reasonable Prices Valuation Long-term
	Cybersecurity New position in Qualys provides cybersecurity and compliance solutions through a SaaS model. The company benefits from long-term secular tailwinds in cybersecurity with high retention rates and recession resistance.	Cybersecurity SaaS Compliance Secular Growth
2024 Q1	Quality The portfolio's Quality orientation continued to stand out down the market cap spectrum where earnings weakness was more pervasive. Strong balance sheets of companies—many with net cash—remained a significant advantage in this high rate environment. The manager sees greater opportunity for quality operators with durable cash flow generation, strong balance sheets and attractive shareholder yields in the years ahead.	Balance Sheets Cash Flow Earnings Fundamentals Shareholder Yield
2023 Q1	Quality The manager emphasizes the durable profitability, strong free cash flow, and balance sheet flexibility of their companies as they face an economic slowdown with higher cost of capital. They believe the quality of their portfolios provides a tangible advantage in an unpredictable world with greater economic volatility.	Balance Sheet Free Cash Flow Profitability Resilience Volatility
	Gambling Churchill Downs continues to execute well and allocate capital effectively, with the company expanding its gaming and historical racing footprint through acquisitions. The profitability of their online betting business has improved dramatically, and Kentucky's legalization of sports betting is expected to be positive.	Gaming Sports Betting Online Betting Historical Racing Capital Allocation
	Semiconductor Cycle Entegris rebounded as the semiconductor industry showed signs of stabilization. The company can continue to gain share due to its breadth of solutions and higher purity requirements, with the transition of new technology and nodes providing tailwinds.	Semiconductors Technology Nodes Market Share Stabilization Materials

QUARTER

THEMES

Quality

The manager emphasizes their Quality-at-a-Reasonable-Price discipline, noting that quality factors were headwinds during the high beta rally but historically regain leadership when fundamentals reassert themselves. They remain confident in holdings with durable advantages, strong balance sheets, and steady free cash flow.

Quality Balance Sheets Free Cash Flow Durable Advantages Fundamentals

Value

The portfolio focuses on attractively valued businesses, with the manager noting that markets often reward speed and speculation over stability after policy shifts. They believe focusing on resilient, attractively valued businesses remains the best path to compounding wealth across full cycles.

Value Attractive Valuations Reasonable Price Intrinsic Value Compounding

2025 Q2

Quality

The manager emphasizes their high-Quality, low-Volatility orientation as positioning them well for an environment of elevated policy risks and fragile global growth. They focus on company quality, sustainable returns on capital, and resilience across economic scenarios.

Quality Resilience Returns Capital Volatility

Trade Policy

Elevated uncertainty exists with high likelihood of greater tariffs being announced in the weeks ahead. Consumer confidence has declined due to risks of additional tariffs, and the effect of tariffs on both inflation and the broader economy could change Fed plans.

Tariffs Trade Policy Uncertainty Inflation

Logistics

The freight recession continues for almost its third year, affecting companies like Saia. Despite industry headwinds, the manager remains convicted in logistics companies with solid balance sheets and strong network growth plans.

Freight Logistics Transportation Networks Recession

2025 Q1

Quality

The manager emphasizes their Quality factor approach, noting that Quality factors have historically posted their best relative returns during periods of decelerating growth and through recessions. They believe they may be late in the economic cycle, which bodes well for Quality factors over the next few years.

Quality Defensive Volatility Recession

Value

Value styles led Growth during the quarter as broader market weakness allowed for a broadening of market leadership. Value and Yield factors posted the strongest returns during the period, benefiting the portfolio's positioning.

Value Yield Outperformance Leadership

Trade Policy

Elevated uncertainty exists around tariff policy, with high likelihood of greater tariffs being announced. The effect of tariffs on both inflation and the broader economy could change Federal Reserve monetary policy plans. Consumer confidence has declined due to tariff risks.

Tariffs Uncertainty Inflation Policy

2024 Q4

Quality

The fund focuses on high-quality companies with sustainably high and improving returns on capital and strong balance sheets. Portfolio companies demonstrate superior financial metrics with 16.7% pre-tax ROC versus 8.4% for the Russell 2500 and lower leverage at 2.1x net debt/EBITDA versus 3.4x for the benchmark.

Returns Balance Sheet Financial Metrics Leverage Profitability

2024 Q3

Quality

The London Company emphasizes balance sheet strength and quality factors as core investment criteria. Their focus on quality became a temporary headwind during Q3 as lower-quality, highly leveraged companies outperformed due to rate relief expectations. The firm believes balance sheet strength will become a differentiator as corporate debt maturities approach.

Balance Sheet Fundamentals Margin of Safety Diversification

Rates

The Federal Reserve delivered a larger-than-expected rate cut during Q3, marking a significant shift in monetary policy. Lower rates supported market sentiment and multiples in the short term, particularly benefiting rate-sensitive sectors. However, rates remain in restrictive territory and policy impacts may take up to two years to affect economic data.

Fed Policy Rate Cuts Monetary Policy Rate Sensitive

Small Caps

Q3 saw notable rotation to small cap and value styles away from large cap growth, fostering broader market participation. The portfolio operates in the small-to-mid cap space with weighted market capitalization higher than small cap but within major domestic SMID indices. Performance trailed the Russell 2500 Index during the quarter.

Russell 2500 SMID Cap Market Rotation Style Rotation

2024 Q2

Quality

The portfolio focuses on high quality businesses with strong balance sheets, high ROIC, and improving margins. The manager emphasizes owning great businesses at reasonable prices and allowing them to compound over the long term.

Quality ROIC Balance Sheet Margins Compounding

Value

The manager maintains a value-oriented approach, seeking businesses at reasonable prices despite market headwinds facing value factors. They believe in owning great businesses at reasonable prices as a winning long-term strategy.

Value Reasonable Prices Valuation Long-term

Cybersecurity

New position in Qualys provides cybersecurity and compliance solutions through a SaaS model. The company benefits from long-term secular tailwinds in cybersecurity with high retention rates and recession resistance.

Cybersecurity SaaS Compliance Secular Growth

2024 Q1

Quality

The portfolio's Quality orientation continued to stand out down the market cap spectrum where earnings weakness was more pervasive. Strong balance sheets of companies—many with net cash—remained a significant advantage in this high rate environment. The manager sees greater opportunity for quality operators with durable cash flow generation, strong balance sheets and attractive shareholder yields in the years ahead.

Balance Sheets Cash Flow Earnings Fundamentals Shareholder Yield

2023 Q1

Quality

The manager emphasizes the durable profitability, strong free cash flow, and balance sheet flexibility of their companies as they face an economic slowdown with higher cost of capital. They believe the quality of their portfolios provides a tangible advantage in an unpredictable world with greater economic volatility.

Balance Sheet Free Cash Flow Profitability Resilience Volatility

Gambling

Churchill Downs continues to execute well and allocate capital effectively, with the company expanding its gaming and historical racing footprint through acquisitions. The profitability of their online betting business has improved dramatically, and Kentucky's legalization of sports betting is expected to be positive.

Gaming Sports Betting Online Betting Historical Racing Capital Allocation

Semiconductor Cycle

Entegris rebounded as the semiconductor industry showed signs of stabilization. The company can continue to gain share due to its breadth of solutions and higher purity requirements, with the transition of new technology and nodes providing tailwinds.

Semiconductors Technology Nodes Market Share Stabilization Materials

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Mar 31, 2023	Fund Letters	The London Company Small-Mid Cap	CHDN	Churchill Downs	Consumer Discretionary	Casinos & Gaming	Bull	NASDAQ	Acquisitions, capital allocation, cash flow, Casinos, Gaming, Historical Racing, Online Wagering, Sports betting	Login
Mar 31, 2023	Fund Letters	The London Company Small-Mid Cap	ABLLW	Lamb Weston	Consumer Staples	Packaged Foods & Meats	Bull	NYSE	consumer staples, frozen foods, Margins, market share, Potato Products, Pricing power, productivity, Quick Service Restaurant	Login
Mar 31, 2023	Fund Letters	The London Company Small-Mid Cap	ENTG	Entegris	Information Technology	Semiconductor Equipment	Bull	NASDAQ	barriers to entry, Diversified, market share, materials, Purity Requirements, semiconductors, switching costs, technology	Login
Mar 31, 2023	Fund Letters	The London Company Small-Mid Cap	AER\|AWI\|MUSA\|NEU\|SAIA\|WTM	Murphy USA	Consumer Discretionary	Specialty Retail	Bull	NYSE	cost structure, Fuel Retail, High Volume, Location Advantage, Low Price, share repurchases, vertical integration, Walmart	Login
Jul 20, 2025	Fund Letters	Brian Campbell	NEU	NewMarket Corporation	Materials	Chemicals	Bull	New York Stock Exchange	buybacks, Capacity, Chemicals, Defense, oligopoly	Login
Jul 20, 2025	Fund Letters	Brian Campbell	AWI	Armstrong World Industries, Inc.	Industrials	Building Products	Bull	New York Stock Exchange	Acquisitions, Building Products, Margins, Moat, Pricing	Login
Sep 30, 2024	Fund Letters	The London Company Small-Mid Cap	WAT	Waters Corporation	Health Care Equipment & Services	Life Sciences Tools & Services	Bull	NYSE	acquisition integration, Analytical instruments, China recovery, Life Sciences Tools, margin expansion, product innovation, Share Buybacks	Login
Sep 30, 2024	Fund Letters	The London Company Small-Mid Cap	ZBRA	Zebra Technologies Corporation	Information Technology	Technology Hardware, Storage & Peripherals	Bull	NASDAQ	Barcode Scanning, data capture, Enterprise Technology, margin expansion, market share gains, operational excellence, RFID	Login
Sep 30, 2024	Fund Letters	The London Company Small-Mid Cap	AWI	Armstrong World Industries, Inc.	Materials	Building Products	Bull	NYSE	Building Products, Ceiling Tiles, Competitive Moats, construction, Distributor Contracts, market leadership, Renovation	Login
Sep 30, 2024	Fund Letters	The London Company Small-Mid Cap	ENTG	Entegris, Inc.	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	Advanced technology, Cyclical Recovery, diversified portfolio, high barriers to entry, semiconductor materials, switching costs, Wafer Content	Login
Sep 30, 2024	Fund Letters	The London Company Small-Mid Cap	LW	Lamb Weston Holdings, Inc.	Consumer Staples	Packaged Foods & Meats	Bull	NYSE	Cost Reduction, Flexible Balance Sheet, Frozen Potato Products, industry tailwinds, market share, Operational Turnaround, productivity improvements	Login
Sep 30, 2024	Fund Letters	The London Company Small-Mid Cap	WTM	White Mountains Insurance Group Ltd.	Financials	Insurance	Bull	NYSE	Bermuda Domicile, book value growth, capital allocation, Insurance, P&C insurance, portfolio optimization, value creation	Login
Jun 30, 2024	Fund Letters	The London Company Small-Mid Cap	BRKR	Bruker Corporation	Health Care Equipment & Services	Life Sciences Tools & Services	Bull	NASDAQ	high-ROIC, innovation, life sciences, margin expansion, Proteomics, Quality, scientific instruments	Login
Jun 30, 2024	Fund Letters	The London Company Small-Mid Cap	QLYS	Qualys Inc	Software & Services	Systems Software	Bull	NASDAQ	cloud-based, cybersecurity, defensive, high margins, IT Security, recurring revenue, SaaS	Login
Mar 31, 2024	Fund Letters	The London Company Small-Mid Cap	DECK	Deckers Outdoor Corporation	Consumer Discretionary	Footwear	Bull	NYSE	Brand management, cash position, Consumer Discretionary, debt-free, Footwear, Non-Seasonal, retail, revenue diversification	Login
Mar 31, 2024	Fund Letters	The London Company Small-Mid Cap	AWI	Armstrong World Industries Inc	Materials	Building Products	Bull	NYSE	Annuity-like Revenue, Building Products, capital allocation, Earnings Resiliency, materials, Pricing power, Remodel Business	Login
Mar 31, 2024	Fund Letters	The London Company Small-Mid Cap	LANC	Lancaster Colony Corporation	Consumer Staples	Packaged Foods & Meats	Bull	NASDAQ	capacity expansion, Commodity Deflation, consumer staples, debt-free, ERP implementation, Free Cash Flow, operational efficiency, Packaged Foods	Login
Mar 31, 2024	Fund Letters	The London Company Small-Mid Cap	DAVA	Endava plc	Information Technology	IT Consulting & Other Services	Bull	NYSE	acquisition, Client Spending, financial services, information technology, It consulting, Offshore Outsourcing, Payments, strategic pivot	Login
Mar 31, 2024	Fund Letters	The London Company Small-Mid Cap	CHDN	Churchill Downs Incorporated	Consumer Discretionary	Casinos & Gaming	Bull	NASDAQ	capital allocation, Casinos & Gaming, Consumer Discretionary, EBITDA growth, Historical Racing, Horse Racing, leverage, Online betting	Login
Mar 31, 2024	Fund Letters	The London Company Small-Mid Cap	CABO	Cable One Inc	Communication Services	Cable & Satellite	Bull	NYSE	ARPU, Cable & Satellite, Communication Services, Fiber Competition, Fixed wireless, Free Cash Flow, M&A, Rural Broadband	Login
Mar 31, 2024	Fund Letters	The London Company Small-Mid Cap	TTC	The Toro Company	Industrials	Agricultural & Farm Machinery	Bull	NYSE	agricultural machinery, Dealer Network, Industrials, Non-Discretionary, Pricing power, Professional Equipment, Rentals, Repairs, Replacement Cycles, ROIC	Login
-	Fund Letters	The London Company Small-Mid Cap	SAIA	Saia, Inc.	Industrials	Trucking	Bull	NASDAQ	consolidation, e-commerce, Freight, Ltl, network, Non-unionized, Onshoring, Transportation, Trucking	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Mar 31, 2023

Fund Letters

The London Company Small-Mid Cap

CHDN

Churchill Downs

Consumer Discretionary

Casinos & Gaming

Bull

NASDAQ

Acquisitions, capital allocation, cash flow, Casinos, Gaming, Historical Racing, Online Wagering, Sports betting

Mar 31, 2023

Fund Letters

The London Company Small-Mid Cap

ABLLW

Lamb Weston

Consumer Staples

Packaged Foods & Meats

Bull

NYSE

consumer staples, frozen foods, Margins, market share, Potato Products, Pricing power, productivity, Quick Service Restaurant

Mar 31, 2023

Fund Letters

The London Company Small-Mid Cap

ENTG

Entegris

Information Technology

Semiconductor Equipment

Bull

NASDAQ

barriers to entry, Diversified, market share, materials, Purity Requirements, semiconductors, switching costs, technology

Mar 31, 2023

Fund Letters

The London Company Small-Mid Cap

AER|AWI|MUSA|NEU|SAIA|WTM

Murphy USA

Consumer Discretionary

Specialty Retail

Bull

NYSE

cost structure, Fuel Retail, High Volume, Location Advantage, Low Price, share repurchases, vertical integration, Walmart

Jul 20, 2025

Fund Letters

Brian Campbell

NEU

NewMarket Corporation

Materials

Chemicals

Bull

New York Stock Exchange

buybacks, Capacity, Chemicals, Defense, oligopoly

Jul 20, 2025

Fund Letters

Brian Campbell

AWI

Armstrong World Industries, Inc.

Industrials

Building Products

Bull

New York Stock Exchange

Acquisitions, Building Products, Margins, Moat, Pricing

Sep 30, 2024

Fund Letters

The London Company Small-Mid Cap

WAT

Waters Corporation

Health Care Equipment & Services

Life Sciences Tools & Services

Bull

NYSE

acquisition integration, Analytical instruments, China recovery, Life Sciences Tools, margin expansion, product innovation, Share Buybacks

Sep 30, 2024

Fund Letters

The London Company Small-Mid Cap

ZBRA

Zebra Technologies Corporation

Information Technology

Technology Hardware, Storage & Peripherals

Bull

NASDAQ

Barcode Scanning, data capture, Enterprise Technology, margin expansion, market share gains, operational excellence, RFID

Sep 30, 2024

Fund Letters

The London Company Small-Mid Cap

AWI

Armstrong World Industries, Inc.

Materials

Building Products

Bull

NYSE

Building Products, Ceiling Tiles, Competitive Moats, construction, Distributor Contracts, market leadership, Renovation

Sep 30, 2024

Fund Letters

The London Company Small-Mid Cap

ENTG

Entegris, Inc.

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

Advanced technology, Cyclical Recovery, diversified portfolio, high barriers to entry, semiconductor materials, switching costs, Wafer Content

Sep 30, 2024

Fund Letters

The London Company Small-Mid Cap

Lamb Weston Holdings, Inc.

Consumer Staples

Packaged Foods & Meats

Bull

NYSE

Cost Reduction, Flexible Balance Sheet, Frozen Potato Products, industry tailwinds, market share, Operational Turnaround, productivity improvements

Sep 30, 2024

Fund Letters

The London Company Small-Mid Cap

WTM

White Mountains Insurance Group Ltd.

Financials

Insurance

Bull

NYSE

Bermuda Domicile, book value growth, capital allocation, Insurance, P&C insurance, portfolio optimization, value creation

Jun 30, 2024

Fund Letters

The London Company Small-Mid Cap

BRKR

Bruker Corporation

Health Care Equipment & Services

Life Sciences Tools & Services

Bull

NASDAQ

high-ROIC, innovation, life sciences, margin expansion, Proteomics, Quality, scientific instruments

Jun 30, 2024

Fund Letters

The London Company Small-Mid Cap

QLYS

Qualys Inc

Software & Services

Systems Software

Bull

NASDAQ

cloud-based, cybersecurity, defensive, high margins, IT Security, recurring revenue, SaaS

Mar 31, 2024

Fund Letters

The London Company Small-Mid Cap

DECK

Deckers Outdoor Corporation

Consumer Discretionary

Footwear

Bull

NYSE

Brand management, cash position, Consumer Discretionary, debt-free, Footwear, Non-Seasonal, retail, revenue diversification

Mar 31, 2024

Fund Letters

The London Company Small-Mid Cap

AWI

Armstrong World Industries Inc

Materials

Building Products

Bull

NYSE

Annuity-like Revenue, Building Products, capital allocation, Earnings Resiliency, materials, Pricing power, Remodel Business

Mar 31, 2024

Fund Letters

The London Company Small-Mid Cap

LANC

Lancaster Colony Corporation

Consumer Staples

Packaged Foods & Meats

Bull

NASDAQ

capacity expansion, Commodity Deflation, consumer staples, debt-free, ERP implementation, Free Cash Flow, operational efficiency, Packaged Foods

Mar 31, 2024

Fund Letters

The London Company Small-Mid Cap

DAVA

Endava plc

Information Technology

IT Consulting & Other Services

Bull

NYSE

acquisition, Client Spending, financial services, information technology, It consulting, Offshore Outsourcing, Payments, strategic pivot

Mar 31, 2024

Fund Letters

The London Company Small-Mid Cap

CHDN

Churchill Downs Incorporated

Consumer Discretionary

Casinos & Gaming

Bull

NASDAQ

capital allocation, Casinos & Gaming, Consumer Discretionary, EBITDA growth, Historical Racing, Horse Racing, leverage, Online betting

Mar 31, 2024

Fund Letters

The London Company Small-Mid Cap

CABO

Cable One Inc

Communication Services

Cable & Satellite

Bull

NYSE

ARPU, Cable & Satellite, Communication Services, Fiber Competition, Fixed wireless, Free Cash Flow, M&A, Rural Broadband

Mar 31, 2024

Fund Letters

The London Company Small-Mid Cap

TTC

The Toro Company

Industrials

Agricultural & Farm Machinery

Bull

NYSE

agricultural machinery, Dealer Network, Industrials, Non-Discretionary, Pricing power, Professional Equipment, Rentals, Repairs, Replacement Cycles, ROIC

Fund Letters

The London Company Small-Mid Cap

SAIA

Saia, Inc.

Industrials

Trucking

Bull

NASDAQ

consolidation, e-commerce, Freight, Ltl, network, Non-unionized, Onshoring, Transportation, Trucking

TICKER	COMMENTARY
SGI	SGI was a top performer as it continues to gain incremental share in the bedding market, despite the weakness in the endmarket. The integration of Mattress Firm is progressing ahead of schedule, causing an improvement in the outlook. We believe the business combination has the potential to unlock meaningful value. Our investment thesis is supported by robust free cash flow generation, strong brand equity, and solid management execution.
NEU	NEU was a strong performer in the quarter, mainly due to three factors. First, low oil prices cut input costs faster than revenue, driving improved profitability. Second, a timely defense acquisition allowed NEU to ramp up production amid global conflicts. Finally, the market is positively viewing the company's use of cash flow to repay debt.
AWI	AWI shares outperformed in the quarter due to beating expectations, driven by favorable positioning in key verticals and strong operating leverage. We continue to like AWI for its consistent execution, strong financials, leading market share and persistent moats through its exclusivity agreements and warranties. We trimmed the existing position in AWI following recent strength. We maintain an optimistic outlook for the ceiling tile business and AWI's leading position in an oligopoly.
WAT	WAT underperformed on the announcement that it will acquire Becton Dickinson's Biosciences and Diagnostics divisions. While we take a skeptical view toward transformational M&A, we do see the strategic logic of the deal, and we have confidence in management's ability to execute on commercial improvements and cost synergies. We continue to have a favorable view of WAT's core business and the management team.
CWST	CWST was an underperformer after reporting continued weakness in construction and demolition volumes, plus temporarily slower synergies from the recent larger acquisition. CWST continues to get pricing above inflation. We continue to be attracted to the scarce assets of the landfills, pricing power, and the consolidated nature of the industry at a local level.
JKHY	JKHY was an underperformer this quarter after reporting a more conservative outlook and temporary margin pressures due to new client onboarding. Overall, results were strong with JKHY winning new business by leveraging its cloud platform and best-in-class technology. We remain attracted to the asset light business model, sticky contracts with long duration, and a clean balance sheet.
ACIW	ACIW's core payments software enables banks, processors, networks, fintechs, and retailers to handle payments regardless of the channel. ACIW doesn't move or process money, they sell the software to facilitate money movement. ACIW's software is mission critical to financial institutions and competition is limited. Margins are attractive and capital spending needs are light. At 11x EV/EBITDA, we believe the stock is attractive and trades at a discount to intrinsic value. We have owned ACIW for years in the Small Cap portfolio. Fundamentals remain attractive and the market cap is now roughly $5B.
REYN	We sold the remaining position in REYN as the company continues to face stiff competition and may face greater headwinds from tariffs. Sale reflects diminished conviction following several years of inconsistent results, challenges from private label products and limited pricing power.
DECK	We added to DECK following recent weakness in the shares. While there have been concerns about the HOKA brand, recent results point to the strength and sustainability of both the UGG and HOKA brands. We believe DECK can continue to generate strong revenue growth with higher margins. The balance sheet is strong with $1.7B in net cash (10% of the company's market cap). With shares now at a much more attractive valuation, we elected to increase our position.
BR	We sold the remaining position in BR following recent strength in the shares. The market cap of BR now exceeds $30B, which is too large for the SMID portfolio.

TICKER

COMMENTARY

SGI

SGI was a top performer as it continues to gain incremental share in the bedding market, despite the weakness in the endmarket. The integration of Mattress Firm is progressing ahead of schedule, causing an improvement in the outlook. We believe the business combination has the potential to unlock meaningful value. Our investment thesis is supported by robust free cash flow generation, strong brand equity, and solid management execution.

NEU

NEU was a strong performer in the quarter, mainly due to three factors. First, low oil prices cut input costs faster than revenue, driving improved profitability. Second, a timely defense acquisition allowed NEU to ramp up production amid global conflicts. Finally, the market is positively viewing the company's use of cash flow to repay debt.

AWI

AWI shares outperformed in the quarter due to beating expectations, driven by favorable positioning in key verticals and strong operating leverage. We continue to like AWI for its consistent execution, strong financials, leading market share and persistent moats through its exclusivity agreements and warranties. We trimmed the existing position in AWI following recent strength. We maintain an optimistic outlook for the ceiling tile business and AWI's leading position in an oligopoly.

WAT

WAT underperformed on the announcement that it will acquire Becton Dickinson's Biosciences and Diagnostics divisions. While we take a skeptical view toward transformational M&A, we do see the strategic logic of the deal, and we have confidence in management's ability to execute on commercial improvements and cost synergies. We continue to have a favorable view of WAT's core business and the management team.

CWST

CWST was an underperformer after reporting continued weakness in construction and demolition volumes, plus temporarily slower synergies from the recent larger acquisition. CWST continues to get pricing above inflation. We continue to be attracted to the scarce assets of the landfills, pricing power, and the consolidated nature of the industry at a local level.

JKHY

JKHY was an underperformer this quarter after reporting a more conservative outlook and temporary margin pressures due to new client onboarding. Overall, results were strong with JKHY winning new business by leveraging its cloud platform and best-in-class technology. We remain attracted to the asset light business model, sticky contracts with long duration, and a clean balance sheet.

ACIW

ACIW's core payments software enables banks, processors, networks, fintechs, and retailers to handle payments regardless of the channel. ACIW doesn't move or process money, they sell the software to facilitate money movement. ACIW's software is mission critical to financial institutions and competition is limited. Margins are attractive and capital spending needs are light. At 11x EV/EBITDA, we believe the stock is attractive and trades at a discount to intrinsic value. We have owned ACIW for years in the Small Cap portfolio. Fundamentals remain attractive and the market cap is now roughly $5B.

REYN

We sold the remaining position in REYN as the company continues to face stiff competition and may face greater headwinds from tariffs. Sale reflects diminished conviction following several years of inconsistent results, challenges from private label products and limited pricing power.

DECK

We added to DECK following recent weakness in the shares. While there have been concerns about the HOKA brand, recent results point to the strength and sustainability of both the UGG and HOKA brands. We believe DECK can continue to generate strong revenue growth with higher margins. The balance sheet is strong with $1.7B in net cash (10% of the company's market cap). With shares now at a much more attractive valuation, we elected to increase our position.

We sold the remaining position in BR following recent strength in the shares. The market cap of BR now exceeds $30B, which is too large for the SMID portfolio.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th September 2025

Investor Letters

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Core Thesis

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Value

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Quality

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Trade Policy

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Quality

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Small Caps

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Quality

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Current Portfolio as of ( 30th September 2025 )

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The London Company Small-Mid Cap