Apr 16, 2025

Today, I learned about a husband-and-wife investing duo who are beating the competition by investing in companies that benefit from chaos. Elise Hoffmann and Christopher Niemczewski, managers of the Marshfield Concentrated Opportunity Fund, focus on companies that can thrive in tough times and have a different kind of cyclicality. They believe that these companies are more resilient during times of stress and can outperform their competitors. Their fund has seen success by holding positions in companies like AutoZone, Ross Stores, and Fastenal, which benefit from chaos in different ways.

The Marshfield fund has a unique approach of not bending to market or economic stress. They believe in maintaining discipline by buying stocks at the right price and selling when it’s optimal. Their portfolio is diversified and includes companies like NVR, which is less tied to the economy, and discount retailers like Ross Stores and TJMaxx. Despite holding a smaller number of stocks, the fund has a cash position near 28%, indicating the difficulty in finding stocks that meet their criteria.

In other financial news, Walgreens has filed proxy statements for its proposed takeover by Sycamore Partners, raising questions about how the deal is being financed. The total funds required for the takeover are estimated to be $18.8 billion, with a significant portion coming from debt. Sycamore Partners, despite its experience, may face challenges in securing the necessary funds for the acquisition. Additionally, Lowe’s has agreed to acquire Artisan Design Group, a flooring products distributor, for $1.33 billion, targeting professional contractors in the housing market.

Lastly, Mark Zuckerberg testified in the FTC’s antitrust case against Meta, where he was confronted with emails showing his concerns about Instagram before the acquisition. The emails revealed his worries about falling behind and the value of acquiring Instagram. Zuckerberg’s testimony is expected to continue, shedding light on the discussions leading up to the acquisition and Meta’s competitive landscape in the social media industry.

Stay Well!