Core Equity Portfolio Update: 15-May-2020

With the enormous price volatility experienced in the stock market over the past several months, we made several changes to the core equity portfolio.  Before we review some of these changes, we believe that a simple investment framework will help understand our logic, beginning with Benjamin Graham’s definition of investing: “An investment operation is one … Read more

Core Equity Portfolio Changes

The level of cash within the Core Equity composite is a direct function of valuation.  As companies within the portfolio approach or exceed our current estimate of fair value, we reduce or eliminate the position. Ideally, there are existing opportunities within the current portfolio to recycle that capital or add new capital to existing positions. … Read more

Sysco Corporation (SYY)

Sysco agreed to acquire closely held US Foods in the largest food-distribution deal in eight years in North America. Sysco will pay $3 billion in common stock, or about 13% of its shares, and $500 million in cash for US Foods whose owners include private equity firms KKR & Co. and Clayton, Dubilier & Rice … Read more

Sysco Corporation (SYY)

Despite economic uncertainty and the potential for missteps in its ongoing business transformation, we believe Sysco is performing well. The company recently reported Q2 results and, excluding the impact of acquisitions and foreign currency movements, Sysco increased its top line 4.3%. Food cost inflation remained moderate, increasing just 2.5% in the quarter versus 6.3% in … Read more

Sysco Corporation (SYY)

Sysco Corporation (Systems and Services Company) is the largest marketer and distributor of foodservice products in North America. With 70 distribution facilities serving more than 150 of the largest cities in the continental United States and parts of Alaska and Canada, Sysco provides food and related products and services to approximately 270,000 restaurants, schools, hospitals, … Read more

Sysco Corp. (SYY)

On Monday, December 14, Sysco held its annual Investor Day where it discussed its competitive position within the foodservice distribution industry and the company”s prospects for the future. Since Monday, the stock has traded down by 5% while the broader market has declined by only 1%. Investors were obviously hoping for management to present a … Read more