Q: Your evaluation of PNP 4Q and 2025 results. They changed quite a few holdings this year and bought some really beat up software companies.. Your guess as to its outlook for 2026.
5i Research Answer:
Book value per share grew from $8.28 to $9.33 over the year and was roughly flat vs the prior quarter. In the recent quarter, it looks like the company added OTEX to the portfolio and a Norway based software company (OMDA). These are fairly small positions with the majority of the portfolio still consisting of Trubridge and Bravura, which make up nearly 55% of the portfolio. With a resurgence in software, we think PNP can do fine but a bit of patience might be needed here.