Q: Hi, thanks to Peter, I am a long-term holder of CSU. As a result, I now have smaller positions in Lumine and Topicus as well, and while I have added to each of those special dividend holdings, I have three fairly similar holdings. I'm looking to pare down my holdings and wondering if you can divine which of the two spin-offs I should keep and add to with the sale of the other? I was leaning to dump TOI because of it's European exposure and it bears similarities to being a younger Constellation while Lumine may be more innovative and unique.
Please comment.
Please comment.
5i Research Answer:
We like all three names of CSU group, we think all three operate in unique VMS markets, and we think all three would do okay from these levels. We think compounders with a solid track record of value creation are rare, so we would be OK keeping all. That being said, we think LMN, being smaller and with less European exposure, has the potential to do better than TOI over time.