Portfolio Rundown

Each of my holdings quick theses and outlook

NICE Ltd (NICE)

My largest holding; I won't comment much here as I've recently posted my research report on it, which you can find here -

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Amazon.com Inc (AMZN)

Not much of a differentiated view here or something that most of you don't already know. Amazon fits into the factors that my other holdings do not, those being passive flows and size. Additionally, top-line growth in 3P, Ads, AWS, and Prime pricing increases have a very long runway. Moreover, as Amazon keeps CapEx and operating expenses flat, incremental revenues come with very high margins.

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REV Group, Inc (REVG)

The most recent quarter reported last week, 3Q2024, was a weaker-than-expected quarter driven by significantly weaker-than-expected results in REVG's Recreational Vehicle (RV) segment, with ~$100mm decremental revenue to its FY and EBITDA margins coming in ~75bps lower than expected. Specialty Vehicles' outperformance partially offset weakness in RV; although slightly weaker on mix realization; EBITDA margins came in higher than expected by ~150bps, leading to a favorable exit rate into 2025. A key upcoming catalyst will be its 4Q2024, where REVG will give its outlook for 2025 and update its medium-term guides and capital allocation strategy (for the first time since April 2021). Additionally, REVG believes that Terminal Trucks (incl. in Spec Vehicle results) is at a trough, I agree, which has created easy comps for 2025 in the Specialty Vehicles segment, and I believe that there is a >50% chance the Terminal Truck segment gets disposed of by 2025 which I think investors would view positively as the segment is dilutive to overall margins. 1H2025 will be tough comps for the RV segment but will improve into 2H2025. With the considerable selloff in light of significantly weaker RV results, I believe this reset sets up favorable expectations for 2025. While I did not anticipate this extreme weakness in RV to overshadow Specialty Vehicles' outperformance, I remain convicted after this reset. With that noted, I'd like to add below $23.50 where my cost basis sits.