Core Insights - Bristol Gate Capital Partners emphasizes investing in companies with strong free cash flows, disciplined capital allocation, and high dividend growth for superior risk-adjusted returns [1] - The market has shifted towards AI leaders since late 2022, leading to the fund's underperformance due to narrow breadth, although the focus remains on high dividend growth companies [1] - Recent market breadth expansion, supported by the outperformance of S&P US Dividend Growers, S&P 500 Dividend Aristocrats, and S&P 500 Equal Weight, presents strong opportunities for investors [1] Company Focus: Interactive Brokers Group, Inc. - Interactive Brokers Group, Inc. (NASDAQ:IBKR) is highlighted as a key investment, providing trading, clearing, and custody services with a market capitalization of $109.15 billion [2] - The stock closed at $64.20 per share on March 27, 2026, with a one-month return of -10.42% and a 52-week gain of 55.08% [2] - Bristol Gate Capital Partners views Interactive Brokers as a high-quality franchise with a strong balance sheet, a loyal client base, and an automated infrastructure that supports superior margins and sustainable mid-teens dividend growth [3]

Core Insights - Bristol Gate Capital Partners emphasizes investing in companies with strong free cash flows, disciplined capital allocation, and high dividend growth for superior risk-adjusted returns [1] - The market has shifted towards AI leaders since late 2022, leading to the fund's underperformance due to narrow market breadth [1] - Recent market breadth expansion, supported by the outperformance of S&P US Dividend Growers, S&P 500 Dividend Aristocrats, and S&P 500 Equal Weight, presents a strong opportunity for investors [1] Company Focus: Cintas Corporation - Cintas Corporation (NASDAQ:CTAS) is highlighted as a key stock in the investor letter, providing corporate identity uniforms and related business services [2] - As of March 27, 2026, Cintas Corporation's share price was $165.71, with a one-month return of -17.80% and a 52-week loss of 19.37% [2] - Cintas Corporation has a market capitalization of $66.289 billion [2] Performance Analysis - In Q4 2025, Cintas Corporation was one of the main detractors in the Materials and Consumer Discretionary sectors, affected by macro concerns and labor market softness [3] - Despite the challenges, Cintas Corporation reported strong quarterly results, indicating effective growth strategies by gaining market share and converting non-programmers into clients for uniform rental and outsourced services [3]

Core Insights - Bristol Gate Capital Partners emphasizes investing in companies with strong free cash flows, disciplined capital allocation, and high dividend growth for superior risk-adjusted returns [1] - The market has shifted towards AI leaders since late 2022, leading to underperformance for the fund due to narrow market breadth [1] - Recent outperformance of S&P US Dividend Growers, S&P 500 Dividend Aristocrats, and S&P 500 Equal Weight indicates a potential shift in market dynamics, providing opportunities for investors [1] Company Focus: Zoetis Inc. (NYSE:ZTS) - Zoetis Inc. is an animal health company specializing in medications, vaccines, and diagnostic products, with a market capitalization of approximately $49.953 billion [2] - The stock closed at $113.35 on March 27, 2026, with a -12.10% return in the past month and a -31.16% return over the past twelve months [2] - In Q4, Zoetis was a significant detractor in the Materials and Consumer Discretionary sectors, facing challenges such as fewer US veterinarian visits and increased competition [3] Financial Performance and Dividend Growth - Zoetis reported earnings that exceeded consensus expectations, but sales fell short, leading to a lowered annual guidance and a stock decline [3] - The company announced a dividend increase of only 6% for the coming year, a significant slowdown compared to its historical annualized dividend growth rate of 22% during the holding period [4] - The decision to exit the position was influenced by the deteriorating dividend growth outlook and setbacks related to its key osteoarthritis drug, Librela [4]