OMAB - The Broyhill Q4 2023 Letter
2024-02-18 11:30:00 ET
Summary
- Broyhill Asset Management is a boutique investment firm guided by a disciplined value orientation. We operate outside of the fray and invest with a rational, objective, long-term perspective.
- The largest contributors to the portfolio's performance for the quarter were Fiserv Inc., Fomento Economico Mexicano, and Nintendo Co., Ltd.
- The largest detractors to performance for the quarter were LatAm airports, Bayer, and British American Tobacco.
- The portfolio activity during the fourth quarter was unusually robust, with ten positions exited and six new investments initiated.
EXECUTIVE SUMMARY
Performance Review
The portfolio’s largest contributors to performance for the quarter were Fiserv Inc. ( FI ), Fomento Economico Mexicano ( FMX ), and Nintendo Co., Ltd. ( NTDOY ). The largest detractors to performance over the quarter were LatAm airports ( ASR , OMAB , PAC ), Bayer ( BAYRY ), and British American Tobacco ( BTI ).
Portfolio Commentary
Portfolio activity during the fourth quarter was unusually robust. We exited ten positions and initiated six new investments. Many of these transactions were years in the making despite the seeming frenzy of short-term activity. Since a proper postmortem on every sale is beyond the scope of this letter and most readers' attention span, we grouped these decisions into three buckets. We trim or liquidate investments when we are right, when we find a better use of our capital, and when we are wrong. We also highlighted two themes of our new purchases: self-help stories and our classic temporary dislocation.