Vertiv Holdings Co (VRT) is a pure-play full-service provider of digital-critical infrastructure solutions for the data center and communications end markets.
Vertiv was poorly managed by its former owner, and we think the new management team will be able to improve operations and close the 500-basis-point margin gap that exists between Vertiv and its peers as the company executes on its strategy and improves its balance sheet. We are also positive on the fundamentals of the data center market and Vertiv's competitive position, which supports top-line growth well above industrial peers. Vertiv should benefit from AI-related data center investment, as increased energy density of servers will require more complicated cooling.

ICON Plc (ICLR) is the second largest global contract research organization (CRO), providing outsourced drug development services to pharmaceutical and biotechnology clients. ICON has expertise in multiple therapeutic areas.
ICON became the second largest CRO through its 2021 merger with PRA Health. As drug trials become increasingly complex and biopharma companies consolidate vendor lists among top-tier providers and seek stickier strategic relationships, we believe large global CROs will be the primary beneficiaries. ICON's scale benefits enhance relevance to existing and potential customers. The outsourcing trend is accelerating, driven by biopharma's need for a lower, more variable cost structure and the inherent lack of biotechnology infrastructure.

Gartner, Inc. (IT) is the leading independent provider of research and advisory services for IT, HR, sales, finance, and marketing leaders.
Gartner has a vast addressable market, which management estimates exceeds $70 billion annually, implying a penetration rate of less than 3%. IT is rapidly changing and growing in strategic importance, leading users to turn to third-party providers for insight into trends. Gartner enjoys retention rates of more than 100%, driven by the low price of its research relative to value. We think consistent execution in Global Technology Sales and improvements in Global Business Sales will help accelerate Research growth into the low double digits.

Kinsale Capital Group, Inc. (KNSL) is a property and casualty insurer focused exclusively on the excess and surplus (E&S) lines market, which includes risks that are unique or difficult to place in the standard insurance market.
We believe Kinsale is a well-run insurer that should grow earnings and book value per share much faster than its peers. Its focus on the attractive E&S market, underwriting discipline, and efficient technology platform enable Kinsale to rapidly grow premiums while delivering industry-leading underwriting margins. Management is highly regarded and has decades of experience in the E&S market. We believe Kinsale has a long runway for growth in an attractive segment of the P&C insurance market.

ASGN Incorporated (ASGN) is the second largest staffing firm in the U.S., providing IT and professional services in the technology, digital, and creative fields across commercial and government sectors.
ASGN participates in segments of the professional staffing industry (scientific, IT/engineering, advertising, digital, creative, marketing, and government) experiencing robust secular growth. Focus on the non-commoditized high end of the market should allow the company to maintain industry-high organic growth rates and gross margins. We think it should benefit from increased U.S. outsourcing penetration and the shortage of skilled workers in its verticals. Its business model is characterized by robust operating margins and substantial free cash flow generation.

Red Rock Resorts, Inc. (RRR) owns and operates 20 local casinos in Las Vegas and is in the planning stages of developing and managing another tribal casino in California. It also controls seven gaming-entitled sites consisting of almost 600 acres in Las Vegas and 30 acres in Reno.
The company operates in the improving Las Vegas locals gaming market, which is now back to its 2007 peak levels. We think the market is attractive, given favorable fundamentals including population growth 2.7 times the national average and $20 billion of development projects that are either in the planning stages or under development. The market also offers the lowest tax rate in the U.S., with limitations on the development of other casinos in the region. Red Rock also has the option to develop or sell its owned acreage for gaming in Las Vegas and Reno.

SiteOne Landscape Supply, Inc. (SITE) is the largest wholesale distributor of landscape supplies in North America. Through its large branch network, the company offers a broad selection of products across irrigation, agronomics, hardscapes, and nursery to landscaping professionals.
While SiteOne is more than five times the size of its closest competitor, it has only mid-teens share of a highly fragmented market. It has significant opportunity to further consolidate the industry through accretive acquisitions, driven by an experienced management team with a strong M&A track record. The core landscaping market generally grows faster than GDP over time and is relatively recession resilient. SiteOne is also investing in initiatives to increase the productivity of its sales force and in-store associates to expand margins over time.

Guidewire Software, Inc. (GWRE) is a leading provider of core systems software to the global P&C insurance industry.
Guidewire is a small player in a vast addressable market and has been benefiting from the inevitable need for P&C insurers to upgrade 30-year-old systems. The company offers best-in-class functionality, as evidenced by its growing installed base and near-100% retention rates. The company has passed the midpoint of its cloud transition, and we expect to see accelerating revenue, expanding margins, and improving FCF over the next several years. We believe that recent M&A in the vertical software space supports a meaningful value creation opportunity for shareholders.

Chart Industries, Inc. (GTLS) is a leader in cryogenic and compressing technology and equipment for fluid processing and storage. Its products perform key functions in process and transportation/storage steps across clean energy (including hydrogen), liquified natural gas (LNG), and industrial industries.
In 2023, Chart closed its acquisition of Howden, a leader in compression technology, expanding Chart's product offering and exposure to clean energy markets while creating a more globally diversified, resilient company with a strong financial profile and continued double-digit growth opportunities. We think Chart is well positioned to benefit from growth in LNG, hydrogen, and other "nexus of clean" industries, where it leverages its existing products and additional application-specific IP to maintain leading market share. Robust cash flow should lead to rapid deleveraging.

TransDigm Group, Inc. (TDG), through its subsidiaries, designs, produces, and supplies engineered aerospace components for commercial and military aircraft customers in the United States.
TransDigm's parts are custom designed at the preproduction stage and are specifically approved by the Federal Aviation Administration and aircraft manufacturers. It is typically the sole supplier of 75% of the parts that it manufactures. While the company earns a modest return on original equipment parts, it earns large margins on after-market replacement parts on airframes that stay in service for decades, creating recurring cash flow used for acquisitions and shareholder dividends.

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