An Analysis of Service Corporation International’s (SCI) Market Leadership and Future Growth Potential

Core Insights - Turtle Creek Asset Management's third-quarter 2025 investor letter indicates a challenging market environment, with the Turtle Creek Equity Fund's net asset value increasing by only 0.4%, underperforming compared to the S&P MidCap 400 index's 7.7% and the S&P/TSX Completion index's 16.3% gains [1] - The letter highlights Service Corporation International (NYSE:SCI) as a significant investment opportunity, despite its recent stock performance showing a one-month return of -1.39% and a 52-week decline of 4.59% [2][3] Fund Performance - Turtle Creek Equity Fund: +0.4% in Q3 2025 - Turtle Creek Synthetic PE Fund: +1.4% - Turtle Creek United States Equity Fund: -1.0% - Turtle Creek Canadian Equity Fund: +7.8% - S&P MidCap 400 index: +7.7% - S&P/TSX Completion index: +16.3% [1] Company Analysis: Service Corporation International (NYSE:SCI) - Service Corporation International is the largest funeral home and cemetery operator in North America, with a market share of only 17% [3] - The company has a history of restructuring and growth, having acquired competitors like Stewart Enterprises and parts of Loewen Group [3] - The management team has been in place for over 20 years, indicating stability and experience in navigating the industry [3] Hedge Fund Interest - Service Corporation International was held by 30 hedge fund portfolios at the end of Q2 2025, an increase from 26 in the previous quarter [4] - Despite this interest, the company is not among the 30 most popular stocks among hedge funds, suggesting a mixed perception of its investment potential [4]