Houlihan Lokey Inc - Class A

We believe HLI is well positioned to deliver durable growth and sustain its leadership within the advisory space over the long term. The firm operates in a competitive landscape, but its strong client relationships and diversified business model differentiate it. Supported by its established reputation and consistent execution, we view HLI as a compelling investment opportunity.

Houlihan Lokey, Inc. is mentioned in the context of valuation declines experienced in several stocks where the market’s assessment of AI’s impact differed from the manager's own. The letter notes that Houlihan Lokey, Inc. is part of a cohort of investments that have faced valuation compression, but does not provide a specific argument for or against the company.

Houlihan Lokey is mentioned in the context of slowing M&A activity, which is identified as a company-specific issue that could prove transient over a longer time horizon. However, there is no explicit bullish or bearish argument made regarding the company's future performance or valuation.

We saw solid relative gains from Houlihan Lokey, which returned over +14%. This performance reflects the company's strong positioning in the investment banking sector, and we believe it is well-positioned for continued growth. The addition of Houlihan Lokey to our portfolio aligns with our strategy to capitalize on firms that demonstrate resilience and potential for expansion in a competitive market.

We added to positions in Microchip Technology, Verisk Analytics, Watsco, Houlihan Lokey, and Avery Dennison Corp. Houlihan Lokey is well-positioned to benefit from the ongoing trends in the market, particularly with its strong performance in the advisory space. The firm has a solid reputation and a competitive edge, which we believe will contribute to its growth in the coming years.

Houlihan Lokey has been a contributor to our portfolio, indicating its strong performance in the current market environment. We believe that its defensive positioning in a volatile market will prove beneficial and that it has the potential to improve its market share. This aligns with our strategy of focusing on companies that can thrive despite market fluctuations.

Houlihan Lokey, Inc. is mentioned in the context of the portfolio's performance, but there is no explicit directional argument made about the company. The letter states that Houlihan Lokey, Inc. had a return of -6.70% for the quarter, contributing -0.08% to the overall return. However, no further insights or future outlooks are provided regarding its business prospects or investment thesis.