Hedge funds' best ideas #99 - Q1'26 Pitches

Jul 9, 2026 · 09:23

↗ https://hfbestideas.substack.com/p/hedge-funds-best-ideas-99-q126-pitches

<div class="subscription-widget-wrap-editor"><div class="subscription-widget show-subscribe"><div class="preamble">Thanks for reading Stock Analysis Compilation! Subscribe for free to receive new posts and support my work.</div><form class="subscription-widget-subscribe"><input class="email-input" name="email" tabindex="-1" type="email" /><input class="button primary" type="submit" value="Subscribe" /><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><div><hr /></div><h3>Upgrade Your Edge on HFBestIdeas.com 🚀</h3>Stop spending hours sourcing and digesting Hedge Fund letters. Let HFBestIdeas do the manual work for you and turn over more rocks in less time. Try any premium plan free for 7 days:<ul><li>The Analyst ($10/mo): Full newsletter (35+ stock pitches/week).</li><li>The Associate ($19/mo): Full access to our pitch database + Quarterly Letter archive.</li><li>The Rainmaker ($29/mo): Total access + Warren AI, your proprietary research assistant.</li></ul>Note: For Associate & Rainmaker access, please subscribe directly at <a href="https://HFBestIdeas.com">HFBestIdeas.com</a>.<a class="button primary" href="https://www.hfbestideas.com/pricing">Start Your 7-Day Free Trial</a>Now, let’s get into this week’s selection of fund ideas 👇<div><hr /></div><h3>Summary :</h3>🔹 Agilysys Inc (AGYS US) by Artisan Non-U.S. Small-Mid Growth Strategy🔹 Amphenol Corporation (APH US) by Aristotle Large Cap Growth🔹 Analog Devices Inc (ADI US) by Artisan U.S. Mid-Cap Value Strategy🔹 Arthur J. Gallagher & Co. (AJG US) by Artisan U.S. Mid-Cap Growth Strategy🔹 BE Semiconductor Industries NV (BESI NA) by Guinness Global Quality Mid Cap🔹 Brenntag SE (BNR GR) by Artisan Non-U.S. Small-Mid Growth Strategy🔹 Brown & Brown Inc (BRO US) by Artisan U.S. Mid-Cap Value Strategy🔹 CME Group Inc. (CME US) by Alpha Wealth Funds🔹 CoStar Group, Inc. (CSGP US) by Baron Asset Fund🔹 CTT – Correios de Portugal SA (CTT PL) by Symmetry Invest🔹 DraftKings Inc. (DKNG US) by Baron Discovery Fund🔹 Envista Holdings (NVST US) by Aristotle Small Cap Equity🔹 EQT (EQT US) by Andrew Hill Investment Advisors🔹 Gartner, Inc. (IT US) by Baron Asset Fund🔹 GE Vernova (GEV US) by Andrew Hill Investment Advisors🔹 Gildan Activewear Inc. (GIL US) by Artemis US Extended Alpha Fund🔹 Immunome Inc. (IMNM US) by Aristotle Core Equity🔹 Indus Towers Limited (INDUSTOW IN) by Baron India Fund🔹 IQVIA Holdings Inc (IQV US) by Artisan U.S. Mid-Cap Value Strategy🔹 Johnson & Johnson (JNJ US) by Guinness Global Equity Income🔹 KKR & Co (KKR US) by 1 Main Capital🔹 Marsh & McLennan (MMC US) by Oakmark Select Fund🔹 Nebius Group N.V. (NBIS US) by Baron Global Opportunity Fund🔹 Ollie’s Bargain Outlet Holdings Inc (OLLI US) by Artisan U.S. Small-Cap Growth Strategy🔹 ONEOK (OKE US) by Andrew Hill Investment Advisors🔹 Onto Innovation Inc (ONTO US) by Artisan U.S. Small-Cap Growth Strategy🔹 Permian Resources Corp (PR US) by Artisan U.S. Mid-Cap Value Strategy🔹 Prio S.A. (PRIO3 BZ) by Baron Emerging Markets Fund🔹 Roblox Corporation (RBLX US) by Artisan Global Discovery Strategy🔹 Targa Resources Corp (TRGP US) by Artemis US Select Fund🔹 The Japan Steel Works, Ltd. (5631 JP) by Baron Emerging Markets Fund🔹 TotalEnergies SE (TTE FP) by Aristotle Value Equity🔹 Tradeweb Markets Inc (TW US) by Artisan U.S. Mid-Cap Growth Strategy🔹 Weyerhaeuser Company (WY US) by Baron Real Estate Income Fund🔹 Zedcor Inc. (ZDC CN) by Hood River International Opportunity Fund<div><hr /></div><h3>Agilysys Inc $AGYS US by Artisan Non-U.S. Small-Mid Growth Strategy</h3>Thesis: Agilysys provides mission-critical hospitality software gaining share in a cloud transition with marquee deployments and accelerating financial performance.Source: https://drive.google.com/file/d/11ggs_5smMyhPpQ7zeIMjv44AbAZ0v8mp/view?usp=drivesdkAnalysis: Agilysys specializes in point-of-sale and property management systems for hotels, resorts, casinos and cruise ships—an underappreciated market. It is still in the early innings of capturing disproportionate market share as customers transition to cloud-native solutions. Although the company reported strong ﬁscal Q3 results and raised its ﬁscal 2026 revenue and EBITDA margin guidance, its shares fell. We have diﬃculty reconciling how the prevailing market narrative that AI will obviate the need for all enterprise software will persist. Case in point, Marriott International’s CEO publicly stated that the anticipated implementation of Agilysys’ software, which began two years ago, should transform its management systems at properties worldwide. We believe shares of Agilysys will eventually reﬂect the company’s accelerating ﬁnancial performance and further embedding of customer relationships.<a href="https://www.hfbestideas.com/?q=AGYS+US&page=1">Access our full research database on Agilysys Inc.</a><div><hr /></div><h3>Amphenol Corporation $APH US by Aristotle Large Cap Growth</h3>Thesis: Amphenol is a diversified interconnect and sensor leader benefiting from secular tailwinds like AI data centers and electrification, with M&A discipline and operational excellence supporting margins and free cash flow.Source: https://drive.google.com/file/d/1ZBZOFaenfo6AsCjGePdcTfEiVB4KRYUE/view?usp=drivesdkAnalysis: Amphenol Corporation is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors and interconnect systems; antennas; sensors and sensor-based products; and coaxial, high-speed and specialty cable. Based on recent reports of industry analysts, the company estimates that worldwide sales of interconnect and sensor-related products were approximately $250 billion in 2024, reflecting continued growth driven by data communications, electrification, and aerospace and defense demand. The company aligns its businesses into three reportable business segments: (i) Harsh Environment Solutions, (ii) Communications Solutions and (iii) Interconnect and Sensor Systems. Additionally, Amphenol serves a diverse range of end markets with its high-performance interconnect systems, sensors, antennas and related products. These markets include defense and aerospace, where Amphenol supports major programs from inception to production; commercial aerospace, providing reliable products for harsh environments; industrial applications such as automation, alternative energy, transportation and electrification; automotive, offering advanced solutions for hybrid and electric vehicles in partnership with global OEMs; communications networks, supplying components for current and next-generation wireless standards like 5G; mobile devices, including smartphones, tablets and laptops; and information technology and data communications, delivering interconnect solutions for servers, networking equipment, cloud infrastructure and AI systems. The company’s sales distribution in 2025 reflected strong representation across these sectors, with the largest share in IT and data communications, followed by industrial, automotive, defense, communications networks, mobile devices and commercial aerospace. We see Amphenol’s investment case as anchored by its diversified end-market exposure, which provides resilience and participation in secular growth trends across automotive, aerospace/defense, IT and data communications, and industrial sectors. The company’s proven M&A strategy continues to drive growth and market consolidation, while operational excellence delivers industry-leading margins and robust free cash flow. Amphenol is well-positioned to benefit from the AI data center boom, the global shift toward electrification, and ongoing industrial and defense modernization. Disciplined capital allocation further supports sustained growth and shareholder value creation. We believe a premium to the share price is justified, as Amphenol should benefit from the accelerated growth rates and increasing TAM of its AI-related data center interconnect business, which should see secular tailwinds for a multi-year period. We also expect management to continue executing on operational excellence, driving margin expansion.<a href="https://www.hfbestideas.com/?q=APH+US&page=1">Access our full research database on Amphenol Corporation</a><div><hr /></div><h3>Analog Devices Inc $ADI US by Artisan U.S. Mid-Cap Value Strategy</h3>Thesis: Analog Devices Inc is a leading analog chipmaker benefiting from an improving cycle, strong margins, sticky customer relationships, and long product lifecycles that support durable compounding.Source: https://drive.google.com/file/d/1eb6R2dmgVOISI7QBW10msQPmm4sq52wm/view?usp=drivesdkAnalysis: Outside of the energy sector, Analog Devices Inc (ADI) was our largest gainer. ADI is the second-largest analog semiconductor chipmaker in the world behind Texas Instruments. ADI’s most recent results reflect a clear acceleration in operating performance as the analog semiconductor cycle improves. The company delivered strong growth, with revenue up roughly 30% year over year and earnings and margins expanding meaningfully, driven by broad-based strength across end markets—particularly industrial, communications and data center demand. Performance has been supported by improving bookings and a recovery in customer demand, alongside continued share gains and strong execution. Profitability has also rebounded, with notable margin expansion reflecting both operating leverage and a more favorable mix. Initially purchased in 2006, ADI is one of our longest held investments and has proven to be an excellent compounder of value, supported by its leadership position in a secular growth industry, strong balance sheet and consistent cash generation. The company operates in attractive segments characterized by high margins and sticky customer relationships. Its chips are designed into applications with long lifecycles—such as automotive, industrial and communications systems—and typically represent a small portion of overall system cost, making them difficult to displace once adopted.<a href="https://www.hfbestideas.com/?q=ADI+US&page=1">Access our full research database on Analog Devices Inc</a><div><hr /></div><h3>Arthur J. Gallagher & Co. $AJG US by Artisan U.S. Mid-Cap Growth Strategy</h3>Thesis: Arthur J. Gallagher & Co. is a high-quality global insurance broker with visible organic growth, synergy potential from AssuredPartners, and emerging margin expansion opportunities.Source: https://drive.google.com/file/d/1IpzN6yDrVIIyOe2raqlvm_UuzV3ZtjMN/view?usp=drivesdkAnalysis: Arthur J. Gallagher is a leading global insurance brokerage and risk management firm. We view it as a high-quality business with visible organic growth, supported by its diverse wholesale, reinsurance and claims operations. The company also has a strong acquisition record, and we expect its AssuredPartners acquisition to deliver meaningful synergies as integration moves forward. We added to the position on recent weakness as organic growth shows signs of stabilization and margin expansion opportunities emerge, including from integration and AI-related initiatives.<a href="https://www.hfbestideas.com/?q=AJG+US&page=1">Access our full research database on Arthur J. Gallagher & Co.</a><div><hr /></div><h3>BE Semiconductor Industries NV $BESI NA by Guinness Global Quality Mid Cap</h3>Thesis: BE Semiconductor Industries NV is the leader in hybrid bonding technology with strong margins and secular growth drivers despite near-term concerns.Source: https://drive.google.com/file/d/1KLMpdwR533FkqlJ9GRDk0HRqtBbK3vl_/view?usp=drivesdkAnalysis: Besi is the undisputed leader in hybrid bonding — the most advanced semiconductor packaging technology available. Where ASML pushes front-end scaling by cramming more transistors onto a single die, Besi enables back-end system scaling by connecting chiplets with direct copper-to-copper bonds, delivering orders-of-magnitude improvements in interconnect density, bandwidth, and energy efficiency. The stock fell by more than 15% in early March 2026 after a report that JEDEC (the semiconductor standards body whose members include Nvidia, Samsung, and SK Hynix) was discussing lowering the minimum thickness limit for memory chips. The concern is that hybrid bonding derives part of its value from enabling thinner chip stacks (used to create high bandwidth memory, HBM) by eliminating solder bumps. Hence, relaxing the thickness constraint may allow memory makers to build HBM stacks using cheaper thermocompression bonding without adopting hybrid bonding in the near term. We view this as a timing debate, not a structural one. Industry consensus holds that hybrid bonding will ultimately be unavoidable, with SK Hynix’s VP of Package Development stating it will be essential for HBM stacks of 20 layers or more. Critically, Besi’s logic chiplet exposure — where hybrid bonding is already in commercial production at AMD, Intel, and TSMC — is entirely unaffected by discussions on HBM standards. With industry-leading margins and growth predicted to continue at 20+%, we see good upside to a stock providing a critical innovation at a time when the AI industry is facing increasing energy bottlenecks.<a href="https://www.hfbestideas.com/?q=BESI+NA&page=1">Access our full research database on BE Semiconductor Industries NV.</a><div><hr /></div><h3>Brenntag SE $BNR GR by Artisan Non-U.S. Small-Mid Growth Strategy</h3>Thesis: Brenntag is a leading chemicals distributor with cost-plus pricing, logistics advantages, oil and gas demand exposure, and attractive valuation under improving management.Source: https://drive.google.com/file/d/11ggs_5smMyhPpQ7zeIMjv44AbAZ0v8mp/view?usp=drivesdkAnalysis: One such example is Brenntag, a top-10 position we believe has several ways to win in the current energy dynamic:1) As a leading global distributor of specialty and commodity chemicals tied to oil and oil-derived products, Brenntag can act as a “toll booth,” charging cost-plus prices without bearing higher extraction or production costs.2) A signiﬁcant portion of Brenntag’s customer base is oil and gas producers, and an increase in oil and gas production would yield a rise in demand for Brenntag’s products.3) Unlike many of its competitors that rely on third-party logistics, Brenntag’s integrated transportation network is a structural advantage in a higher energy cost environment.4) As supply chain resiliency and security become more important, customers’ propensity to stockpile grows. This is particularly acute after the post-COVID destocking cycle.On top of these reasons, we believe the company trades at an attractive valuation and are encouraged by the new management team’s recent eﬀorts to improve operational eﬃciencies.<a href="https://www.hfbestideas.com/?q=BNR+GR&page=1">Access our full research database on Brenntag SE</a><div><hr /></div><h3>Brown & Brown Inc $BRO US by Artisan U.S. Mid-Cap Value Strategy</h3>Thesis: Brown & Brown Inc is a middle-market insurance broker with high-margin, low-capital-intensity economics and resilient demand, now offering favorable valuation amid overstated AI disruption fears.Source: https://drive.google.com/file/d/1eb6R2dmgVOISI7QBW10msQPmm4sq52wm/view?usp=drivesdkAnalysis: Brown & Brown is a leading US insurance broker focused on the middle market. The shares have come under pressure alongside the broader broker group, as investors recalibrated expectations following a period of elevated growth driven by a hard insurance market. As pricing and growth have begun to normalize, valuations have compressed, creating what we believe is a more attractive entry point. From a business economics perspective, insurance brokerage is a compelling model. Brokers act as intermediaries without taking underwriting risk, resulting in high margins, low capital intensity and strong free cash flow conversion, supported by high customer retention. Brown & Brown has built a scaled platform serving small- and mid-sized businesses, a segment that tends to exhibit resilient demand, and has compounded value over time through consistent organic growth and acquisitions in a fragmented industry. While near-term growth is moderating and competition has increased, we view concerns around AI-driven disruption as overstated. Brokers provide critical advisory and claims support functions that remain difficult to replicate, and technology should enhance productivity over time rather than displace the model. From a financial standpoint, the company is generating strong, recurring cash flows, with a solid balance sheet that supports continued reinvestment and M&A. With the shares now trading closer to the lower end of their historical valuation range, we believe the risk/reward is favorable.<a href="https://www.hfbestideas.com/?q=BRO+US&page=1">Access our full research database on Brown & Brown Inc.</a><div><hr /></div><h3>CME Group Inc. $CME US by Alpha Wealth Funds</h3>Thesis: CME Group is a near-monopoly derivatives exchange offering a structural hedge on market volatility.Source: https://drive.google.com/file/d/17wdyjzN9nuXfrNv7z7gIqfRC7CiTabwM/view?usp=drivesdkAnalysis: Business: CME Group Inc. is the world’s leading and most diverse derivatives marketplace. It operates several of the most prominent exchanges globally, providing a platform for market participants to manage risk and capture opportunities across virtually every major asset class Our Thesis: This is a near monopoly and one of the few ways to play hedging volatility in an uncertain world. We’ve owned it off and on for years. It has a place in our long term portfolio as well as our trading account.<a href="https://www.hfbestideas.com/?q=CME+US&page=1">Access our full research database on CME Group Inc.</a><div><hr /></div><h3>CoStar Group, Inc. $CSGP US by Baron Asset Fund</h3>Thesis: CoStar Group is a leading real estate information and marketplaces provider with differentiated data assets, high recurring revenue, and meaningful cash flow potential.Source: https://drive.google.com/file/d/1NlDDTnY2CXVxQbZRMCyUyT7tGcJX9vBx/view?usp=drivesdkAnalysis: We continue to own CoStar given its differentiated data assets and significant growth opportunities in providing enhanced real estate information, analytics, and marketplace offerings. CoStar boasts an enviable business model with high levels of recurring revenue and meaningful cash flow generation potential. While near-term cash flow is obscured by elevated investment in its Homes.com unit, we expect this spending to moderate and cash flow to improve over the next several years. The company also maintains a substantial cash balance, which we are hopeful will be used to aggressively repurchase shares at current depressed valuation levels.<a href="https://www.hfbestideas.com/?q=CSGP+US&page=1">Access our full research database on CoStar Group, Inc.</a><div><hr /></div><h3>CTT – Correios de Portugal SA $CTT PL by Symmetry Invest</h3>Thesis: CTT – Correios de Portugal is transforming into a pure-play Iberian logistics leader with strong growth, potential bank divestiture, DHL JV synergies, and an attractive valuation.Source: https://drive.google.com/file/d/1cmm4pJ2VituH0FVr6qtxR3ymD2NAslLK/view?usp=drivesdkAnalysis: CTT is a leading Portuguese logistics company. Founded more than 500 years ago as a legacy mail business – but since transformed into a growing logistics company. CTT now owns the leading express and parcels business in Iberia as well as one of the fastest growing banks in Portugal. CTT – our Portuguese logistics company had an amazing year in 2025. They managed to grow revenue 16 % compared to the prior year and EBIT with 35 %, all with a lower share count and while paying dividends. But even more important is the segment reporting. CTT is now becoming a pure-play logistics company with 50 % of profit now coming from the E&P segment. This level will just continue to grow in the coming years. We expect a gradual increase in the stock as the market gets around to the fact that CTT is no longer a mail/banking business that should trade at 5-7x EBIT, but instead a leading Iberian logistics firm that should trade at +10x. Another strategic step in the right direction would be for CTT to sell a majority stake in the bank. We still think the market underestimates how much capital is actually tied up within the bank. And thereby also how large a cash windfall CTT can get by selling it. A large portion of that cash will allow CTT to invest more in the E&P segment and continue large-scale share buybacks. Here is what the CEO said on the conference call, when he was asked around a recent Bloomberg article speculating that CTT had hired strategic advisors to sell the bank. “Finally, on the Bank, I would -- if you allow me, correct your statement, Bloomberg does not say that we have hired consultants to discuss the selling of the Bank. We would have denied such a statement. They say that advisers were contacted for -- if I’m not wrong, discuss options for the Bank. I don’t know. I don’t care actually. What I may say is that we are very happy with the development of the bank. But I must also add that we keep receiving manifestations of interest. And of course, we look at them very seriously. And that’s it. We don’t want to add anything more. But the statement that has been used several times that we would like to -- we see ourselves in the long term mostly as an e-commerce logistics player, and that we’d like to have a lower importance of the bank in our portfolio stands. Having said so, we are first rational agents and react to demonstrations of interest that I must say are probably today more frequent than before.” Another positive factor was that CTT finally got regulatory approval for the JV partnership with DHL. This was an agreement that was announced in December 2024 and those has been long underway. Just the consolidation of DHL Portugal will add 2 million in EBIT this year. But on top of this is 35 million EUR in estimated synergies that will be achieved throughout the next 18 months and thereby significantly contribute to the earnings of CTT. Even through CTT could have some short-term disruptions from the war in the middle east (primarily access to inventory from air freight), this would only be short term noise. We still see CTT as a long-term structural winner, with a valuation that is extremely low and a lot of strategic options to optimize the value long term.<a href="https://www.hfbestideas.com/?q=CTT+PL&page=1">Access our full research database on CTT – Correios de Portugal SA</a>

<a href="https://hfbestideas.substack.com/p/hedge-funds-best-ideas-99-q126-pitches">
Read more
</a>