Andvari Associates Q1 2022 Fund Letter
Summary
The decline is due to the Federal Reserve signaling a strong desire to raise interest rates to combat 8%+ inflation. A condition of that deal was for TSS to adopt the Topicus name and for the combined group to be spun out as a separate public company. We are impressed that Constellation and Topicus have achieved returns on acquisitions of >20% on average and they’ve done it without employing private equity tactics. • Finally, as Mark Leonard has written, “For an annual cost that rarely exceeds 1% of a customers’ revenues, our products help them run their businesses efficiently, adopt their industry’s best practices, and adapt to changing times.” Because their software is a low cost relative to revenues, this again gives Constellation and Topicus pricing power. Our holdings have excellent management teams striving every day to increase the value of their businesses over the long term.
Classifications
AskAI Classifications
LabelsLinked Companies
