Kelly Granat

So that's an area where I feel like we typically don't do a lot with the banks. not an area where we feel like we can really add value. There's regulatory risk and all the, and we don't think, you know, those are not sort of, don't really measure against our quality filter as businesses.

So that's an area where I feel like we typically don't do a lot with the banks. not an area where we feel like we can really add value. There's regulatory risk and all the, and we don't think, you know, those are not sort of, don't really measure against our quality filter as businesses.

But there's a number of pockets inside of financials that we think are not very well covered that are pretty interesting. And we've got a great team doing research there. So I think that's one area. We have been investors for really decades. two decades almost, and continue to be in the aerospace market, both OEM and aftermarket, and continue to love those businesses.

But there's a number of pockets inside of financials that we think are not very well covered that are pretty interesting. And we've got a great team doing research there. So I think that's one area. We have been investors for really decades. two decades almost, and continue to be in the aerospace market, both OEM and aftermarket, and continue to love those businesses.

They have all of the attributes of businesses we like, great organic growth, great pricing power. As people fly more, planes get used more, there's a need for repair. replacement parts. They get spec'd in to planes as they're being built. And so they're typically single source or sole sourced. And they're super low cost as a percentage of the overall plane.

They have all of the attributes of businesses we like, great organic growth, great pricing power. As people fly more, planes get used more, there's a need for repair. replacement parts. They get spec'd in to planes as they're being built. And so they're typically single source or sole sourced. And they're super low cost as a percentage of the overall plane.

And so they're just recurring revenue businesses with a lot of pricing power and very little capital against those businesses to grow organically. And I feel like there's a pretty good open-ended structural story around people traveling more and valuing experiences. And so that will continue to, I think, be a very productive area for us.

And so they're just recurring revenue businesses with a lot of pricing power and very little capital against those businesses to grow organically. And I feel like there's a pretty good open-ended structural story around people traveling more and valuing experiences. And so that will continue to, I think, be a very productive area for us.

And there's a bunch of different names that we've owned in that ecosystem and will continue to own likely over time. So I think that's another big area. Those are two. I mean, consumer is harder, I would say. Most businesses were more active there on the short side than the long side at this point, just because there's just an inherent maturity to, I think, a lot of those businesses.

And there's a bunch of different names that we've owned in that ecosystem and will continue to own likely over time. So I think that's another big area. Those are two. I mean, consumer is harder, I would say. Most businesses were more active there on the short side than the long side at this point, just because there's just an inherent maturity to, I think, a lot of those businesses.

And the ones that are the really scaled winners, even just watching the revaluation of Walmart in the last 18 months has been super interesting as they've really emerged as a more consistent executor. And Doug's done a fantastic job, I think, with that business. But that, I mean, Walmart's now trading at a pretty hefty multiple and Costco's trading really, I mean, these are the best,

And the ones that are the really scaled winners, even just watching the revaluation of Walmart in the last 18 months has been super interesting as they've really emerged as a more consistent executor. And Doug's done a fantastic job, I think, with that business. But that, I mean, Walmart's now trading at a pretty hefty multiple and Costco's trading really, I mean, these are the best,

you know, executors in the space and they're really expensive. So I think the market has sort of figured out that they are the winners. And so less to do there in my mind in terms of runway for long growth that's underappreciated or maybe fairly valued relative to the actual level of growth.

you know, executors in the space and they're really expensive. So I think the market has sort of figured out that they are the winners. And so less to do there in my mind in terms of runway for long growth that's underappreciated or maybe fairly valued relative to the actual level of growth.

It's one of the things we debate a lot, honestly, is in areas like healthcare, this happens in certain sectors and also in certain geographies where there's very few companies that have high growth or have exposure to a thematic that the market is excited about because of a geography or because of a sector focus.

It's one of the things we debate a lot, honestly, is in areas like healthcare, this happens in certain sectors and also in certain geographies where there's very few companies that have high growth or have exposure to a thematic that the market is excited about because of a geography or because of a sector focus.

And we like those businesses too, but they tend to trade at valuations that don't stack up against businesses that we see across the portfolio that are more compelling. So even though we love lots of companies around the world and would love to own them, we're always waiting for like a

And we like those businesses too, but they tend to trade at valuations that don't stack up against businesses that we see across the portfolio that are more compelling. So even though we love lots of companies around the world and would love to own them, we're always waiting for like a

a wobble or a dislocation or a perceived competitive threat to give us our chance to own them because they don't stack relative to owning more of a lot of the compounding businesses that we love.

a wobble or a dislocation or a perceived competitive threat to give us our chance to own them because they don't stack relative to owning more of a lot of the compounding businesses that we love.