Donville Kent Asset Management April 2025 Commentary

2025-04-23 06:55:00 ET

Summary

• Recent market volatility driven by tariffs and trade war concerns has created opportunities to buy high-quality companies at discounted prices, particularly those with minimal exposure to China.
• Focus on niche growth companies with strong fundamentals, such as GoEasy, Propel, Zedcor, VitalHub, and others, which are expected to perform well despite market turmoil.
• Emphasize the importance of staying within one's circle of competence, avoiding emotional reactions to headlines, and focusing on long-term investment strategies.
• Current market conditions resemble past panics, suggesting that investing during periods of maximum pessimism can lead to significant future returns.

The last few weeks have seen a complete market shift. From being focused on deregulation, a pro- business administration, and accelerating earnings growth, to 100% of the attention now on tariffs and a trade war. The cause is simple, one man’s misguided policy, to put it politely. The question now is what to do. In this report we will detail our specific investments, overall strategy, and outlook.

To start, some of our comments or data will be outdated by the time we publish because that is how fast policy, sentiment, and headlines are moving right now. A good place to start is on the idea of “headlines”, their impact, not only on the market but more importantly on one’s state of mind....

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