DHR - Mar Vista - Danaher: Headwinds Are Primarily Cyclical Growth To Regain Momentum

2024-06-20 08:50:00 ET

Summary

• Mar Vista initiated an investment in Danaher due to durable competitive advantages, compounding intrinsic value, and superior capital allocation strategy.
• Danaher's strong barriers to entry in biotechnology and life sciences, along with its focus on innovation and capital efficiency, have consistently increased shareholder value.
• Anticipated secular growth trends in biologics and genomics, along with Danaher's capital allocation strategy, are expected to drive intrinsic value growth despite recent challenges.

The following segment was excerpted from this fund letter.

Danaher ( DHR )

During the quarter, we initiated an investment in Danaher ( DHR ).

Danaher has long checked three of Mar Vista's qualitative boxes for investment: durable competitive advantages, above average compounding of intrinsic value, and a superior capital allocation strategy. Recently, after material underperformance over the last two years, the fourth criterion was met: stock trades at a discount to our estimate of fair value....

For further details see: