50 new pitches found in hedge fund reports this week
Thanks for reading Stock Analysis Compilation! Subscribe for free to receive new posts and support my work. 🆕 New on the site: Insights, the research fund managers publish outside their letters Every week, asset managers put out market, sector and company research. We read it and summarise each piece in full, so you get the whole argument in 30 seconds — with the original one click away. 👉 Browse the latest research → 🔹 Abbott Laboratories (ABT US) by Acatis 🔹 Abivax (ABVX US) by Cedar Grove Capital Management Multi-Strategy Composite 🔹 Adyen (ADYEN NA) by Lakehouse Capital Global Growth Fund 🔹 Alcon (ALC US) by Beck Mack & Oliver Portfolio 🔹 Alibaba Group Holdings (BABA US) by CDT Capital VNAV 🔹 Alphabet (GOOGL US) by Troy Asset Management Multi-Asset Strategy 🔹 Alphabet (GOOGL US) by Lakehouse Capital Global Growth Fund 🔹 Amazon (AMZN US) by Longriver Partners Fund 🔹 Arthur J. Gallagher (AJG US) by Guinness Global Equity Income Fund 🔹 Astellas Pharma (4503 JP) by Lindsell Train Japanese Equity Fund 🔹 Auto Trader Group PLC (AUTO LN) by Pender Global Small/Mid Cap Equity Fund 🔹 Auxly Cannabis Group Inc (XLY.TO) by Cedar Grove Capital Management Multi-Strategy Composite 🔹 Belden (BDC US) by Amati Investment Funds 🔹 Broadcom (AVGO US) by CDT Capital VNAV 🔹 Canadian National Railway (CN CN) by Troy Asset Management Multi-Asset Strategy 🔹 Cirsa (CIRSA SM) by Horos AM Funds 🔹 Cisco Systems (CSCO US) by Lorne Steinberg Wealth Management Steinberg Equity Strategies 🔹 CyberAgent, Inc. (4751 JP) by Hennessy Japan Small Cap Fund 🔹 Eaton (ETN US) by Guinness Global Equity Income Fund 🔹 Eli Lilly (LLY US) by Andrew Hill Client Account Strategy 🔹 ENAV (ENAV IM) by TAMIM Fund Global High Conviction 🔹 Experian (EXPN LN) by Troy Asset Management Multi-Asset Strategy 🔹 Gaztransport et Technigaz (GTT FP) by TAMIM Fund: Global High Conviction 🔹 Grupa Pracuj by Ennismore Global Smaller Companies Fund 🔹 Hims and Hers Health (HIMS US) by Cedar Grove Capital Management Multi-Strategy Composite 🔹 Hyakugo Bank (8331 JP) by Leaven Partners, LP 🔹 James Hardie Industries (JHX AU) by Amati Investment Funds 🔹 Lam Research (LRCX US) by ACATIS 🔹 Lam Research (LRCX US) by Guinness Global Innovators Fund 🔹 Línea Directa (LDA SM) by Horos AM Funds 🔹 Lion Finance Group by Ennismore European Smaller Companies Fund 🔹 Murata Manufacturing (6981 JP) by TAMIM Fund Global High Conviction 🔹 ONEOK (OKE US) by Malborough Global Essential Infrastructure 🔹 Oxford Nanopore (ONT LN) by Acatis 🔹 Recruit Holdings Co., Ltd. (6098 JP) by Hennessy Japan Small Cap Fund 🔹 Sage (SGE LN) by WS Lindsell Train UK Equity Fund 🔹 SAP (SAP GR) by Lindsell Train Global Equity Fund 🔹 Securitize (SECZ US) by Jacob Funds Management 🔹 Space Exploration Technology Corp by Pender US Small/Mid Cap Equity Fund 🔹 Spirax Group (SPX LN) by Lindsell Train UK Equity Fund 🔹 Suzano (SUZB3 BZ) by Horos AM Funds 🔹 TE Connectivity (TEL US) by Guinness Sustainable Energy Fund 🔹 The Bank of Nagoya (8522 JP) by Leaven Partners, LP 🔹 TP ICAP Group (IAP LN) by Lindsell Train UK Equity Fund 🔹 Twist Bioscience (TWST US) by Acatis 🔹 VBG Group by Kavaljer Quality Focus 🔹 Welltower Inc. (WELL US) by Guinness Global Real Assets Fund 🔹 Williams Companies (WMB US) by Malborough Global Essential Infrastructure 🔹 Wolters Kluwer (WKL NA) by Acatis 🔹 Zedcor Inc (ZDC.V) by Cedar Grove Capital Management Multi-Strategy Composite Abbott Laboratories ($ABT US) Fund: Acatis Thesis: Abbott Laboratories is a diversified health care leader with recurring growth, competitive advantages and an attractive valuation. Source: Read the original letter ↗ Analysis: Abbott Laboratories is a US dividend aristocrat that has increased its distributions for 54 years in a row. Such stocks rarely become available at a good price. At the time of purchase, the P/E ratio for the current year was 18, which was well below the historic average of 22 to 24. The business model is based on four pillars. Medical Devices account for approximately 45% of sales reve- nues. Besides blood glucose measurement, the company also has a strong competitive advantage in electrophysio- logy: if the heart is beating too fast without an identifiable cause (e.g. atrial fibrillation), the defective vessels can be obliterated using minimally-invasive procedures. Abbott supplies the products for this purpose. Laboratory sup- plies, rapid tests, transfusion medicine make up appro- ximately 25% of Diagnostics. The strategically useful (but not cheap) takeover of Exact Sciences has added tests for the early detection of colon and breast cancer. The nutrition business (18%) is recovering: high-pro- tein food supplements to prevent muscle loss are now recommended for patients on weight-loss drugs such as Ozempic. The remaining segment (Established Phar- maceuticals, 12%) consists of high-quality generic drugs - a segment that is growing 8-9% annually. Two reasons (which we believe are temporary) enabled us to purchase this stock at a good price: certain serial numbers of blood glucose measurement devices had to be recalled at the end of last year; however, there was no significant loss of market share as other competitors (e.g. Dexcom) struggled with similar problems. Other factors include price increases in the nutrition business, which should protect the margin in the face of rising commodity costs. These were not initially accepted by the market. But in terms of the entire product mix, all signs continue to point to growth. Abbott Laboratories Diagnostics, nutrition and drugs The company has increased its dividend for 54 years in a row. The current rate of return is 2.4%. To ensure future growth, Abbott focuses mainly on the glucose measure- ment system FreeStyle Libre, and on expanding cancer diagnos- tics with Exact Sciences. In the medium term, management anticipates revenue growth of around 6.5 - 7.5% per year. Also, right now the stock is more attractively valued than in many phases of previous years (see marginal column on right). Access our full research database on Abbott Laboratories Abivax ($ABVX US) Fund: Cedar Grove Capital Management Multi-Strategy Composite Thesis: Abivax has a de-risked ulcerative colitis drug with long-term upside from commercialization or a potential buyout. Source: Read the original letter ↗ Analysis: When we last spoke about ABVX in our Q2’26 letter, we noted that the company released updated safety information that reduced concerns of reported malignancies of its ulcerative colitis (UC) drug, obefazimod. However, as time went on, the stock experienced a slow decline in the quarter. We believe there are two reasons for this. 1) Without an impending takeover announcement, arbitrage traders have largely been reducing their exposure in the name, and thus, leaving long investors to be the only incremental buyers of the stock. 2) With yields trading at where they are, historically speaking, biotechnology companies tend to bear the brunt of such a move. Neither, in our opinion, change the long-term potential of this drug, which we estimate can still make ABVX be valued at north of $170/share with the soon-to-be commercialization, or >$200/share in the event of a buyout. As a reminder, with phase 3 maintenance data already released, this is a mostly de-risked drug asset in a pharmaceutical environment that is actively looking for high-quality assets to add to their portfolios considering many will be experiencing patent cliffs over the next five to ten years. One way or another, excluding any left tail events, ABVX’s intrinsic value should be realized over the coming years. Access our full research database on Abivax Adyen ($ADYEN NA) Fund: Lakehouse Capital Global Growth Fund Thesis: Adyen has durable growth runway from wallet share expansion and platform expansion beyond core payments, making it stickier and enlarging its addressable market. Source: Read the original letter ↗ Analysis: Adyen delivered another consistent set of results, growing net revenue by 21% year-on-year (in constant currency) and guiding to 21-23% growth for the full year. While there may sometimes be concerns around the company’s long term growth runway, management highlighted that there is still room for wallet share expansion with new and existing clients, noting that merchants typically expand their share of wallet from under 20% in earlier years to over 40% after year 12. Adyen recently won a deal to process payments for OpenAI and continues to expand enterprise accounts such as Toast into the US market. Beyond core payments, Adyen’s next stage of growth focuses on expanding its footprint across the wider commerce journey. The recent acquisitions of Talon.One and Orb have been well received by enterprise clients, taking Adyen into work that sits before and after the payment rather than just the payment itself. We view the move beyond core payments as a clear positive, as it not only expands Adyen’s addressable market but also makes the platform stickier with every product a merchant adopts. Access our full research database on Adyen 💬 Two minutes to shape what we build next What would make this newsletter or the site more useful to you? What’s missing, what’s annoying, what would you happily pay for? Just hit reply. The first 10 readers who send a useful suggestion get a free month of full site access — the searchable archive of every pitch and letter — no card needed. Alcon ($ALC US) Fund: Beck Mack & Oliver Portfolio Thesis: Alcon has leading positions in cataract surgery and contact lenses, with strong pricing power and a valuation that does not reflect its sustainable mid-teens EPS growth. Source: Read the original letter ↗ Analysis: Alcon (ALC) is a leading eye health business, with a dominant competitive position in cataract surgery machines and a significant share of the attractive, consolidated contact lens market. In cataract surgery, phacoemulsification systems perform the incision and removal of the cloudy lens. Approximately 50% of people develop some form of cataracts by age 60, and cataract surgery is one of the most commonly performed medical procedures. ALC’s market share in phacoemulsification systems is nearly 80%, and its brand and technology are highly regarded among ophthalmologists. This part of the business is attached to high-margin sales of consumables such as interocular lenses. In contact lenses, ALC is the second largest competitor in a four-player market characterized by brand loyalty among consumers and strong pricing power. ALC also has an ocular health business, which includes treatments for dry eye, pink eye, and glaucoma. For both ALC and SHC, we have spent a great deal of time with the respective management teams and other industry participants in an effort to validate each company’s future runway for organic revenue and earnings growth and opportunities to allocate capital. We believe that ALC is capable of sustainable mid-teens growth in earnings per share and that SHC’s growth profile is solidly in the double-digits, while neither stock trades at a valuation that reflects the growth trajectory that we have underwritten. Our decision to invest now was predicated on both how the respective businesses are positioned fundamentally and on their prevailing valuations. Access our full research database on Alcon Alibaba Group Holdings ($BABA US) Fund: CDT Capital VNAV Thesis: Alibaba Group Holdings is building internal AI semiconductor capabilities to lower costs, improve workload efficiency, and expand margins over time. Source: Read the original letter ↗ Analysis: We welcomed the likes of Honeywell Aerospace (HONA), Dick’s Sporting Goods (DKS), Salesforce (CRM), Alibaba (BABA) The Coopers Companies (COO) to our portfolio. Similar to its domestic counterparts, Alibaba’s AI labs are currently unprofitable; however, the company has an internal AI semiconductor design business that it hopes to leverage to improve profitability over time. Generally, proprietary or in-house chips carry a significantly lower price tag and offer greater workload efficiency than their third-party generalist counterparts, both of which can translate into higher margins over time. As we ramp up deployment of our own proprietary chips in our data centers as they account for an increasing proportion of total chips and replace commercially procured chips, we can expect to see substantially higher gross margin as well as profitability. - Eddie Wu, CEO of Alibaba Group Holdings – Q1-2026 Earnings Call Access our full research database on Alibaba Group Holdings Alphabet ($GOOGL US) Fund: Troy Asset Management Multi-Asset Strategy Thesis: Alphabet is a diversified AI beneficiary with a dominant cash-generative search engine, a leading LLM, custom silicon, and a major cloud business. Source: Read the original letter ↗ Analysis: We do not position for a binary outcome; in the portfolio, Alphabet remains one of the largest holdings, and a clear bet on a positive AI future – in our view, the company has many ways to win; owning the world’s preeminent (and highly cash generative) search engine which is seeing accelerated growth, owning one of the three leading LLMs, developing its own custom silicon chips, and running one of the world’s leading cloud businesses. Access our full research database on Alphabet Alphabet ($GOOGL US) Fund: Lakehouse Capital Global Growth Fund Thesis: Alphabet is a core holding because its integrated AI stack and ongoing reinvestment position it to benefit from AI adoption over the long term. Source: Read the original letter ↗ Analysis: The largest detractor was Alphabet (-0.4%), which delivered another strong quarterly result but drifted modestly lower as the market stayed focused on the scale of its ongoing reinvestment. We continue to view that spending as a source of long-term strength rather than a cause for concern. As the only hyperscaler with a fully integrated AI stack spanning chips, infrastructure, models, data and distribution, we believe Alphabet is exceptionally well placed to benefit from the ongoing adoption of AI and it remains a core holding in the portfolio. Access our full research database on Alphabet Amazon ($AMZN US) Fund: Longriver Partners Fund Thesis: Amazon is becoming a neutral AI platform with Bedrock and Trainium, while benefiting from large profit pools and underappreciated earnings durability. Source: Read the original letter ↗ Analysis: Our Fund has been invested in TSMC and Meta since 2023, and Nvidia since 2025. I invested in semiconductor equipment supplier KLA Corp earlier this year and reinvested in Amazon, too. Together, as I write this, these investments comprised 35% of our portfolio, having grown larger due to their outperformance relative to other holdings, before our reduced their size. We are not a technology fund. As I explained earlier, I became attracted to these companies because they offered large and growing profit pools, high returns on capital, strong balance sheets, and earnings whose durability appeared underappreciated. Amazon is becoming the neutral market for artificial intelligence. Bedrock lets customers use competing models without caring which chips sit underneath, while Trainium can lower Amazon’s cost of serving them. If inference becomes the larger market, AWS can grow by selling the abstraction rather than betting on a single model. Access our full research database on Amazon Arthur J. Gallagher ($AJG US) Fund: Guinness Global Equity Income Fund Thesis: Arthur J. Gallagher has a defensible core business and is using AI to improve productivity rather than face disintermediation. Source: Read the original letter ↗ Analysis: Theme 5: Many firms caught up in the software sell-off are continuing to deliver solid fundamentals Many software and technology companies that came under heavy pressure during the software sell-off are proving the resilience of their core businesses, delivering solid fundamentals and showing that generative AI acts as a secular tailwind rather than an existential disintermediation threat. Incumbents have been leveraging proprietary datasets, deep customer workflow integrations, and trusted infrastructure to build highly defensible moats. Instead of being replaced, they are embedding AI directly into their core applications to deliver immediate productivity benefits, turn AI into a commercial driver, and expand their total addressable markets into labour-saving offerings. Arthur J Gallagher CEO, J Patrick Gallagher: “For more than two decades, we’ve been improving productivity and quality by standardizing workflows, building our centers of excellence, and bringing more of our data together around the world. AI digitization and automation are simply the next tools in that effort… And the point is simple. These tools make our professionals faster, better informed, and more productive. But they do not replace judgment, advocacy, relationships, or accountability to our clients.” Access our full research database on Arthur J. Gallagher Astellas Pharma ($4503 JP) Fund: Lindsell Train Japanese Equity Fund Thesis: Astellas Pharma has a promising pipeline, strong current cash flow, attractive valuation, and the ability to generate high operating margins. Source: Read the original letter ↗ Analysis: It is not just software and media companies whose ratings and valuations have declined of late. The Fund’s two pharmaceutical companies, Astellas and Takeda, have continued to make good progress by achieving approvals for new compounds. Both companies have promising pipelines, complementing their substantial current cashflows. Prospective P/E ratios for both companies based on core earnings are below 15x, with current free cash flow yields at c.10%. We view these valuations as attractive for companies that have the ability to generate 20-30% operating margins, despite the ever present threat of patent expiry to revenues. Access our full research database on Astellas Pharma
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