FMI International Equity - Unhedged Q1 2026 Review

The CRO industry continues to consolidate as trials are becoming more complex, patients are harder to find and enroll, and sponsors are ever mindful of the need for incremental efficiency. Purchase durable business franchises that are selling at a discount to their intrinsic value. Investment Process: We utilize a business owner's approach to investing, thoroughly investigating the economics of the business and the Fiduciary Management, Inc. ("FMI"), founded in 1980, is an independent money management firm based in Milwaukee, Wisconsin. FMI's equity investing strategies apply a value discipline, with a focused approach firmly rooted in fundamental research. As of 3/31/2024, FMI has approximately $16.1 billion in AUA ($15.8 Billion AUM). Note: This account is not managed or monitored by Fiduciary Management and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Fiduciary Management's official channels. Fluidra was added due to its leading position in pool equipment, resilient repair/replacement revenue, and attractive valuation despite macro headwinds and tariff concerns. ICON was sold after a slow recovery in CRO industry growth and an audit committee investigation into revenue recognition, leading to lost confidence in management. With a forward FY1 P/E of 15.1x and EV/EBITDA of 10.7x, the portfolio aligns with FMI's focus on low absolute and relative valuation for durable franchises.