Rob Vinall

Rob bought Constellation Software in early March. He views it as a company full of owners and founders, with new CEO Mark Miller having started the first company Constellation acquired and founder Mark Leonard still a presence. He prefers its culture and less egregious stock-based compensation and owner-earnings profile versus other software peers.

Rob sees a bifurcated, momentum-driven market where the S&P 500 makes new highs while many software companies are down 60-70% from prior highs. That dispersion creates an ideal environment for a long-term owner to buy durable software businesses cheaply due to temporary setbacks; he was evaluating 20-30 such names in March.

Rob has allocated about a third of the portfolio to out-of-favor Chinese equities. He believes persistent negative perception has created a valuation disconnect, while his on-the-ground visits show rapid innovation and world-class companies in manufacturing, consumer internet, and e-commerce. He targets founder-run businesses with wide moats, expects at least 10% earnings growth and 5% or more annual capital returns from dividends and buybacks, enough to reach his 15% owner-return hurdle. Named holdings include Luckin Coffee, Tencent Holdings, HWorld Group, Yum China Holdings, and DiDi Global.