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Constellation Software Inc. (CSU $4,571.40)
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Topicus.com Inc. (TOI $176.60)
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Lumine Group Inc. (LMN $49.57)
Q: Hi, just wondering if you had a chance to listen to the AGM of these companies this morning. I listened to it and they discussed a whole range of topics. They're all down 2-4% today. I'm assuming investors have some concerns of rising competition, ease of capital deployment, M&A opportunities, lowering hurdle rates, etc. Any concerns or thoughts going forward and do you see them continuing to outperform over the long term? These are long term holds for me. CSU is my largest holding at 5.8%, followed by LMN at 5.2% and TOI at 2.2%. Do these allocations look reasonable or should I balance them all out more evenly? Thank you!
5i Research Answer:
We did not make or listen to the AGMs. There could be any number of reasons for any decline, but all are nicely up on the year and ahead of the market, so we would not see concern in some minor declines. M&A activity may be a bit slower than some expected, but we would expect this to pick up if valuations change and rates decline. None of the three would give us any undue cause for any additional concern. We can't comment on personal weightings but WE would be fine with the allocations noted.