Markel (MKL, Financial) was the lone standout performer for the quarter. Insurers typically benefit from a strong economy, as pricing tends to improve and the volume of risk to be insured grows. We also expect higher interest rates to translate into higher investment income as insurers recycle premium “float” into higher-yielding securities. The Fund’s new position in Gartner also provided a modest lift. Gartner is a leading provider of subscription-based research services to IT and business professionals (i.e., C-suite executives). Gartner’s business model is enviable: expert analysts create research reports that are then syndicated to subscribing clients. Analysts are also made available to clients for consultations. This one-to-many model allows clients to gain access to what otherwise may be cost-prohibitive research and critical business intelligence. Meanwhile, Gartner can invest back into additional research capabilities and still earn a very healthy margin.
From Wallace Weitz (Trades, Portfolio)'s Hickory Fund first-quarter 2022 commentary.
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