Value Amid Uncertainty

Greg: When we think about searching for opportunities, we like to explore areas of the market that are less covered by our peer group and potentially have some potential business transformation that the company is going through.

Mark: So, we’re always looking for opportunities where others may be kind of running away from the fire or the controversy, and digging into situations when others are afraid, whether that’s looking for apparel companies when the tariff concerns rolled out earlier this year, or buying analog semiconductors at the trough of the cycle or biopharma companies that are facing headwinds from supply constraints.

Matt: Cyclical opportunities really are a terrific place to find values. So, if you can understand through experience and through really knowing these companies as we have done for a long, long time, you can understand that there are periods of time where the market will look at an economic cycle and really extrapolate that indefinitely. So, it’s suggesting that the company somehow changed or there’s something is broken about it. But our understanding and our experience tells us that no, we really are reaching a bottom, and it is about to inflect positively. And what’s great is when you can find a company trading on a trough multiple on trough earnings so that you’re not only catching that transition and earnings rebounding, but you’re also getting the multiple expansion with it.

Greg: We think, by seeking those types of opportunities that others will not explore, provides us with alpha-generating opportunities.

Filmed January 2026

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