1. Snoring more…
High Conviction Fund holding Resmed released a strong 3Q result this week. Revenues exceeded expectations across all categories. As device sales hit an all-time high (see chart below). The company has ramped up device production and now has full global availability of the connected AirSense 10, as well as being able to supply global demand for CPAP and APAP devices, putting the chip shortages from Covid behind them. We expect them to continue growing market share as they work through the backlog of patients, as their biggest competitor, Phillips, remains impacted by a product recall.
Source: Firetrail, Resmed
Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.
2. Carbon positive…
If you subscribe to the Wall Street Journal, we hope you saw the front page story they did on S3 Global Opportunities Fund holding, Weyerhaeuser, this week. We have been engaging with Weyerhaeuser extensively over the past few years, and are pleased to see them get the recognition they deserve for their efforts in decarbonisation.
Weyerhaeuser is the largest private land owner in North America. It owns 11 million acres of sustainable forests across the Pacific Northwest, and South of the US. And whilst forests are the best natural carbon dioxide absorber, Weyerhaeuser also use the land for renewable energy purposes (wind, solar), and below ground for carbon capture and storage. The company is in the prime position for playing a role in the decarbonisation of the world.
Source: WSJ
Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.
3. The new power sector…
The big tech giants have had the FAANG acronym for some time now due to their market dominance. But strong results from the ‘fast’ food end of the market have raised questions over whether they are deserving of a similar style acronym. The strength in quick service restaurants (QSR) like McDonalds and Chipotle bodes well for High Conviction Fund holding Dominos, as consumers trade down to these more economical food options.
Source: Evans (Data range: January 2023 – March 2023)
Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.