Spring 2025

Scott Rosenthal mentioned a long position in Siemens AG, indicating a favorable outlook based on the company's international investment opportunities and risk management strategies.

Scott Rosenthal discussed a long position in Nippon Sanso Holdings Corp, highlighting the company's potential in the international market and the team's rigorous analysis behind the investment.

Benjamin Beneche and Ramesh Narayanaswamy shared their long position in Nintendo, emphasizing the company's durable value and potential for growth within their investment strategy.

The founders of Tourbillon Investment Partnership mentioned a long position in Howden Joinery, reflecting their focus on durable value investing and the company's strong market position.

Tourbillon Investment Partnership holds a long position in Berkshire Hathaway, viewing it as a strong investment due to its durable value and diversified portfolio.

Eternal, Ltd. is positioned well in the market due to its innovative approach and growth potential in the technology sector. The company has shown resilience and adaptability, making it a compelling investment opportunity.

Zengame Technology Holding, Ltd. is an attractive investment due to its strong growth prospects in the gaming industry and its ability to capitalize on emerging trends in technology.

Sprouts Farmers Market, Inc. is a solid investment choice as it benefits from the increasing consumer demand for healthy and organic food options, positioning it well for future growth.

The investment thesis for Carlisle Companies (CSL) is based on its transformation into a pure-play building products platform, which is expected to drive above-consensus revenue growth due to structural tailwinds in the commercial roofing market. The company is undervalued by the market, which is pricing it for weak growth and margin reversion, while CSL is poised for significant revenue growth driven by pent-up demand for reroofing and increasing insulation requirements. Additionally, disciplined capital allocation and margin durability further support the investment case.

Eternal, the parent company of Zomato and Blinkit, is positioned to benefit from its dominant market share in India's food delivery and quick commerce sectors. The recent stock correction due to aggressive reinvestment in Blinkit presents an attractive entry point for long-term investors, with a forecasted 20.5% USD IRR and potential for 2.5x returns over five years.

Siemens is a collection of quality assets in factory automation, healthcare, and other industrial disciplines that should allow the company to grow at attractive incremental rates in excess of GDP. The management has demonstrated a commitment to returning capital to shareholders, which can enhance value even if the market is slow to recognize it.

Nippon Sanso is positioned to improve its operating performance due to the acquisition of assets from Praxair, which brought strong managerial talent and expertise. The company has latent pricing power that it can now exercise in the domestic market, and recent governance reforms in Japan support management's focus on improving operational performance and shareholder value.

Gavin Baker mentions owning GDS, the largest data center company in China, as a way to capitalize on the growth of AI and data center demand in the region.

ACMR is highlighted as a potential beneficiary in the semiconductor space as China aims for independence in semiconductor manufacturing, which could lead to significant growth for the company.

NAURA is mentioned as another company that could thrive in the semiconductor sector as China develops its own capabilities, potentially filling the gap left by Western companies.

Baker discusses the potential for companies impacted by AI in China, suggesting that there are opportunities to invest in this sector, although he does not specify a particular stock or price.

Zengame Technology is currently undervalued, trading at a low multiple of earnings and free cash flow, with a strong balance sheet featuring no debt and a significant cash position. Despite a recent decline in revenues and earnings, the company's valuation suggests it is priced for perpetual decline, presenting an attractive opportunity for investors. The management team has a solid background in gaming, and the company's flagship games continue to perform well in the market.

Sprouts is a specialty food retailer that is executing well and has strong growth prospects, particularly with its e-commerce sales and new store openings. While the current multiples may not appeal to all value investors, the company is well-positioned to benefit from health-conscious consumer trends and has a solid pipeline for future growth.

Zengame is seen as a deep value investment opportunity, particularly with its potential for growth through existing games like Fishing Master and the possibility of overseas revenue. The investor believes that despite the company's current challenges, it is worth holding for the next 2-3 years to see how it performs as it navigates its growth cycle.

BERO Beer, a non-alcoholic beverage brand, is gaining popularity at Sprouts, reflecting a broader trend of consumers seeking healthier alternatives to alcohol. This aligns with Sprouts' focus on health-conscious products and could drive sales growth for the brand.

We recommend a BUY for RB Global (NYSE: RBA) with a base-case price target of $149, implying a 16% IRR over a three-year horizon. RB Global operates the largest auction platform for used heavy equipment and has expanded into the U.S. salvage car auction market through its acquisition of IAA. With strong execution from a seasoned management team and meaningful synergy potential, we believe RBA is well-positioned to deliver steady growth and margin improvement.

The investor believes Carlisle Companies has strong growth potential due to its diversified business model and robust market position in the construction and industrial sectors.

Siemens has been undergoing a transformation from a low-growth industrial conglomerate to a more dynamic business with attractive assets and long-term growth potential. The management's commitment to optimizing value through asset sales and capital deployment is encouraging, and the market is beginning to recognize this value, although it remains underappreciated.

Rémy Cointreau has a strong balance sheet, healthy returns on capital, and operates in a durable market segment with high barriers to entry, particularly in dark liquor and champagne. The company's products are tied to specific regions, which enhances their scarcity and market stability.

Diageo is considered for its strong brand portfolio and market position in the liquor industry, which aligns with the focus on durable brands and high barriers to entry in the market. The company benefits from its established presence and brand loyalty.

Brown-Forman, known for its Jack Daniel's brand, is appealing due to its inventory management and aging process that creates a unique market position. The brand's strength and the company's operational model contribute to its durability in the liquor market.

Microsoft is viewed as a strong investment opportunity due to its potential for growth and durability, especially if its valuation compresses. The company is considered a fulcrum asset in the tech sector, making it attractive at the right price.

Amazon is also on the target list for investment, seen as a symbiotic loop with Microsoft. The company is recognized for its strong business model and potential for growth, particularly if valuations become more favorable.

Nintendo stands out in the gaming industry due to its strong franchises and history of durability. The company has adapted well to market changes, moving towards more recurring revenue models, which enhances its economic stability and growth potential.

Nintendo is positioned as a fulcrum asset with a strong cultural approach that prioritizes customer satisfaction over immediate profit maximization. With the anticipated launch of the Switch 2, which addresses previous hardware limitations, the company is expected to generate owner earnings of 720 yen per share, translating to a 7% yield and a mid-teens IRR, making it an attractive investment relative to opportunity costs.

Howden Joinery is identified as a symbiotic retailer with a unique business model that focuses on supplying building materials exclusively to tradespeople. This model has resulted in significant market share and competitive pricing advantages, making it a durable investment opportunity in an unexpected sector. The company's decentralized management structure fosters an entrepreneurial culture that enhances its operational effectiveness.

Howden is positioned to benefit from a less cyclical demand environment, with current market conditions suggesting a recovery towards long-term average sales. The business operates with strong margins and a resilient model, allowing for a favorable owner earnings yield even without relying on a cyclical upswing. The shares are currently trading at an undemanding valuation, providing a margin of safety for investors.

Berkshire Hathaway is viewed as a misunderstood giant with a unique capital structure that allows for significant returns on equity. The company has a substantial amount of excess capital that can be reinvested, and despite its size, it offers an attractive owner earnings yield. The management team is expected to maintain a steady hand in capital allocation, ensuring long-term value creation.