We purchased shares of leading supplier of residential thermal, comfort and security solutions, Resideo Technologies, Inc. (REZI, Financial). In our view, the company’s best-in -class brand andvast distribution network create a narrow moat around the business resulting in high market share and attractive margins across its product portfolio. While the company has struggled to find its footing since being spun-out of Honeywell in 2018, we see early evidence that the new management team’s long-term strategic vision is both achievable and not yet being embraced by investors. We view this as an opportunity to own a niche business, well positioned to benefit from the ongoing housing recovery and a secular preference for more connected smart home solutions.
From John Rogers (Trades, Portfolio)' Ariel Fund fourth-quarter 2021 commentary.
