We want to own the great businesses of tomorrow, and market volatility gives us opportunities to invest in them at more attractive prices.
Any time there is market disruption, our goal is to use it to our advantage. So, much like during the COVID-19 pandemic, we leaned into our highest-conviction ideas during the first half of 2025.
While not an exhaustive list, here are five key traits we’re focused on in today’s environment:
1. Long Runway for Growth
These companies do or provide something that matters, and consumers want it. That relevance gives them the potential to grow regardless of the macro backdrop.
2. Low-cost Leadership
Companies that can produce, sell, or deliver at lower costs—especially with leaner operations or fewer fixed assets—have an edge in a world where supply chains change and prices rise. You’ll hear us refer to these as “low-cost leaders,” and they’re well-represented in our portfolio today.
3. Acquisition Expertise
Studies show that ~70% of acquisitions fail to create value. But for the few that have proven to be good at it, more difficult times are when they make hay.
4. Financial Strength
Just like individuals, companies can get into big trouble if they take on too much debt and the unexpected happens.
5. Exceptional Management Teams
With ongoing changes from tariffs and shifting policies, operational excellence and strategic clarity are becoming increasingly important. Companies that can maximize the value of their existing assets and operate more efficiently, especially by leveraging digital tools instead of outdated manual processes, will be better positioned to succeed.
By consistently applying these five traits, we aim to identify and invest in businesses well-positioned to navigate disruption and grow over the long term.
