Fall 2021

The thesis is based on CoStar's strong market position and growth potential in the commercial real estate data and analytics sector. The company is expected to continue expanding its services and customer base, which should drive revenue growth and enhance shareholder value.

AptarGroup is positioned to benefit from increasing demand for its innovative dispensing solutions across various sectors, including pharmaceuticals and consumer products. The company's focus on sustainability and technological advancements is expected to drive future growth.

CoStar Group is positioned to benefit from the growing online auction market through its acquisition of Ten-X, which has a significant market share and superior transaction metrics compared to traditional auctions. The company’s differentiated marketplace strategy and strong historical performance suggest substantial revenue growth potential, particularly in the residential sector, which is currently under-monetized. The valuation is attractive with a target price of $165, representing a 99% upside from the current price.

AptarGroup is a market leader in packaging solutions across pharma, beauty, and food sectors, with a strong growth outlook driven by its shift towards the higher-margin pharma segment. The company is expected to achieve mid-high single digit revenue growth and margin expansion, particularly as it capitalizes on trends in respiratory diseases and injectable devices. The target price of $167.42 reflects a CAGR of 9.4%, indicating solid long-term value.

CSGP started as the Bloomberg of commercial real estate and has positioned itself as the leader in digital real estate services. With a strong revenue mix and significant growth opportunities in both its core data/analytics offering and multifamily segment, CSGP is expected to see double-digit earnings and free cash flow growth in the coming years.

AptarGroup is well-positioned to benefit from the growing demand for sterile packaging in the pharmaceutical sector, particularly with its elastomeric components. The company is expected to achieve high-single digit organic growth in its pharma segment, driven by drug repurposing and increasing biologic production in APAC. Additionally, Aptar's unique ability to transfer technology across its segments creates a competitive advantage that supports long-term growth and margin expansion.

Capitec is categorized as a compounder, and the investment was acquired through PSG at a 40% discount, indicating strong potential for growth and value recognition in the market.

Karooooo is also classified as a compounder, suggesting that it has strong growth prospects and is expected to perform well in the long term.

Stadio is included in the compounders category, indicating it has solid fundamentals and growth potential that could lead to significant returns.

Naspers is mentioned as an active position, reflecting its significant influence in the South African market and potential for value appreciation.

Rudi van Niekerk discusses the opportunity in South African companies trading at deep discounts compared to developed markets, suggesting a favorable environment for capital allocation and potential buybacks.

STADIO is delivering world-class academic outcomes at competitive prices, which is a significant value proposition compared to state education budgets. This positions the company well for growth in the private education sector in South Africa.

Curro is another private education company that offers high-quality schooling at prices comparable to or lower than state education budgets, making it an attractive investment in the education sector.

Sibanye-Stillwater is a platinum group metals company that is poised to benefit from a sustained drive towards cleaner energy, as platinum group metals are essential for this transition. The company has faced a significant lack of capital expenditure over the past decade, leading to a lag in supply that is expected to create favorable conditions for price increases.

ING is currently trading at a 10 to 20 percent discount to its net asset value, which is attractive compared to the average premium of companies in the FTSE world index. The bank has a history of reasonable return on equity and is well-capitalized, making it a compelling investment as it shows signs of recovery after a long period of underperformance.

NetEase has been a rewarding investment for over 10 years, and it is viewed as having a competitive position and growth potential comparable to leading global companies like Google and Amazon, but at lower valuations. Despite the risks associated with investing in China, the potential for growth and value creation remains strong.

Tencent is considered to have a competitive position and growth potential similar to that of major global companies, yet it is available at lower valuations. This makes it an appealing investment despite the regulatory risks in China.

Rolls Royce is currently facing challenges due to a lack of long-haul air travel, which has negatively impacted their free cash flow and forced them to raise capital and sell non-core assets. However, the investor believes that this period will not last forever and that demand for travel will eventually return, leading to a significant recovery in pricing as the company is well-positioned to benefit from the resurgence in demand.

British American Tobacco has a strong fundamental performance and a high dividend yield of 7.9%, which provides a good return. The company is currently undervalued due to ESG concerns, but the investor believes that the returns will primarily come from dividends rather than a re-rating of the stock.