Q: Long time holder of ONEX. The 10 year chart is less then inspiring, could I get your opinion of this company. Continue to hold or move on? Thanks Ron
5i Research Answer:
ONEX is up 26% in the past 10 years but 364% over the past 20 years. It has had some bad timing on deals (i.e. buying Westjet days before Covid shut the world down), and some 'just bad' deals (Gluskin Sheff which was shuttered three years after being bought for $1B+). While we like private equity, and ONEX has a solid balance sheet and $1.3B cash, we would not consider it a must-own. We would far prefer BN in this sector.