09/08/2026
We’re often asked how we whittle down the vast universe of public equities into a workable list that fits DM’s investment criteria and warrants further investigation.
The first step in this funneling process involves screening stocks against a set of “gating factors” to eliminate names which don’t match our core principles of cash flow generation, growth, and effective redeployment. The first of our screens is industry outlook, or whether the company is operating in a part of the economy which is both expanding and likely to maintain its favourable profile into the foreseeable future.
Our decision to add shares of aircraft parts maker, HEICO Corp., to DM US Equity in early 2025 was underpinned not only by very strong industry fundamentals, but also by a regulatory structure that presents substantial barriers to competition.
Not surprisingly, the certification process required to make replacement parts for commercial airplanes is extremely demanding, which severely impedes entrants to the space and greatly enhances the pricing power of incumbents. At the same time, travel activity has been on a steady climb in recent years.
Read more below. ⬇️
