Overview
- Since inception through September 30, 2025, the fund outperformed QUAL by 69.2% gross (61.3% net) and the S&P 500 by 32.7% gross (26.1% net).
- Alphabet, O’Reilly Automotive and TJX led Q3 contributions as IT and Communication Services benefited from AI enthusiasm and market breadth improved after the Fed’s first rate cut since 2024.
- Qualivian exited Copart due to tougher competition from IAA under RB Global and softer insurance-driven volumes, redeploying into Brookfield Corporation, a $1 trillion AUM alternative-asset platform.
- The letter spotlights Amphenol as a durable compounder, noting Q3 sales up 53% to $6.194 billion and a December 22 close at $135.14 for a market cap near $165.4 billion.
- Watsco was a bottom contributor with Q3 revenue and EPS down 4% and 6% year over year, though it posted record 27.5% gross margin and $355 million operating cash flow and remains debt-free; hedge fund holdings shifted with Amphenol at 89 portfolios (up from 81), TJX at 69 (down from 73), Brookfield at 42 (up from 37), Copart at 59 (down from 61), and Watsco at 34 (unchanged).