$IHI thanks $UNH cc: $EW $SYK $BSX

"how should we think about you getting to non-GAAP rule of 50?" just brutal $CRM

Accenture spending >$2B on R&D/training (~4% of sales) in 2022: "Since 2020, headcount grew 40% to match demand... its ROIC barely moved at all during the challenges of 2020, and has steadily risen since 2019, highlighting the resilience of the business" $ACN

$MSFT's 'ecosystem' as "exceptionally hard for any competitor to replicate and is arguably impossibly expensive to dislodge... at $24B last year, the company's capex spend is close to 70% of the whole of the $MSCI World software industry spend combined" (also via MSIM)

on $TMO's five major areas of reinvestment last year + widening competitive advantage: "Overall, the company invested $2.5 billion in capex across its businesses to strengthen partnerships and accelerate growth..." $TMO

some add'l background: ~8yrs investing experience (primarily as generalist at concentrated LO funds + some L/S) following 3yrs on SS. If forced to pick a style box would be LT 'global quality growth' but valuation matters. Team/culture most important to me; some key tenets below

I’m looking to join a new team (public equities); currently based in NYC but flexible. DMs open / wtcm2023 [at] gmail and thanks for the help.

$UNH + $CHNG = bigger AI winner...

Fiera/StonePine Global Equity (~$20B AUM) median company sporting ROIC/op margins nearly 3x/2x the MXWO and modestly higher '24E sales growth; it's now 'just' 44%/24% more expensive on earnings/EBIT multiples - perhaps unsurprisingly (?) has materially outperformed on 1/3/5/10/SI

Euro staples NTM P/Es relative to MSCI Europe, 2005-today

AM vs. ASM growth: "Historically, the direction of aftermarket growth has mirrored ASM growth and while ASKs are back to ~80% of '19 levels, AM businesses have recovered more than this, and some of this growth likely reflects pricing in an inflationary environment" $HEI $TDG $MTX

"For the years ended December 31, 2022, 2021 and 2020, BlackRock, Inc. accounted for 17.4%, 20.4% and 18.0% of the Index segment’s operating revenues, respectively." $BLK $MSCI

"Customer concentration is real, as BlackRock makes up ~50% of MSCI’s ABF [though $BLK = just 10.3% of total $MSCI rev]... in 2019, MSCI signed a 10-year agreement that does include some pricing concessions, but the 10y horizon should solidify the relationship b/w the two..."

Edwards $EW 5y historical valuation ranges: "On the basis of the U.S. TAVR market recovery alone, we continue to believe EW could be one of the most significant alpha-generators in our coverage universe this year..."

"the Board gave them a standing ovation" $RMS

Patrick Thomas (2009): "If we put a big H on a bag, we will sell millions... it would be a capital sin when you have an asset, a jewel like Hermès" $RMS $MC $1913

Patrick Thomas (2009): "If we put a big H on a bag, we will sell millions... it would be a capital sin when you have an asset, a jewel like Hermès"

on second thought... $NDAQ

"What may come as a surprise, though, is that healthcare stocks also outpaced MXWO even when stocks rebounded in 4Q22... in fact, over the past 10y, HC has captured around 90% of the upside of broad global markets" via $AB x $MSCI

another 'multibillion dollar windfall' for Thoma Bravo (getting $10.5B for an asset generating $300MM FCF after paying a combined $5.7B); $NDAQ leverage to 5x & ROIC further torched

'strategic' questions for Pernod $RI cc: $DGE $RCO

$AMAT installed base approaching 50k with structurally increasing services intensity

Wells estimates licensing uplift from gen AI to be +200bps to EDA industry growth rate $SNPS $CDNS $NVDA

process control market share (per $IT), 2014-2022 $KLAC $AMAT $ONTO

HCL Technologies CEO with a clear message: "We are focused on improving ROIC..."; incremental ROIC of >50% is indeed an interesting 'factoid'... $HCLT IT cc: $WIT $CTSH $TCS $ACN