IDEX Corp

IDEX Corporation's first-quarter results demonstrated an acceleration in top-line growth and a growing backlog of orders. This positive momentum indicates strong demand for their products, positioning them well within the market. The company is benefiting from the broader trends in the semiconductor industry, particularly as it relates to AI and data center projects, which are driving increased demand for key components. We believe this growth trajectory supports our bullish stance on IDEX Corporation as a valuable investment opportunity.

IDEX Corporation has shown strong performance, contributing positively to the Fund's returns with a 20.15% increase this quarter. The company is part of a sector that is experiencing a rally, particularly in analog semiconductors, which is driven by power management solutions. This positions IDEX favorably within the market, and we believe it has substantial upside potential. Our decision to add to this position reflects our confidence in its continued growth and the value it brings to our portfolio.

IDEX’s first-quarter results demonstrated an acceleration in top-line growth and a growing backlog of orders. This positive momentum indicates that the company is well-positioned to capitalize on the increasing demand for its products, particularly in the context of the ongoing AI boom. The strong performance reflects IDEX's ability to leverage its competitive advantages and maintain a robust growth trajectory, making it an attractive investment opportunity.

IDEX has shown modest gains in a challenging market environment, indicating resilience amidst broader sector declines. The company is positioned well within the evolving landscape of AI and technology, which is critical as investor sentiment shifts. The Fund believes that IDEX's fundamentals remain strong, and its performance relative to the market suggests it may be undervalued, providing an attractive opportunity for growth as conditions stabilize.

IDEX Corp. contributed to Fund returns for the quarter as the industrial economy showed improved trends.

IDEX Corporation is mentioned as part of a group of very good businesses trading at reasonable valuations. The manager expresses optimism about this group’s chances over the next few years, indicating a belief in their potential for solid outcomes based on the execution of clear, well-articulated strategies.

Idex Corporation is mentioned in the context of management experience, but no specific investment thesis or directional argument is provided regarding its future performance or valuation.

IDEX Corp serves the life sciences market and we bought additional shares as it got caught up in the industry drawdown. Despite the pressure from funding cuts to federal health agencies and potential reductions to research spending, we believe in the long-term value of IDEX's position in this sector. The company is well-positioned to benefit from any recovery in the life sciences space, and we see potential for growth as the market stabilizes.

IDEX Corp. (IEX) was one of the top detractors from performance this quarter, reflecting a cautious economic forecast that weighed on its outlook. The diversified industrial firm faced challenges similar to those of other companies in the sector, indicating potential headwinds. The stock price has not reflected investor optimism, which suggests concerns about its future performance amidst a slowing economy.

IDEX Corp. was one of the Fund’s largest quarterly detractors, returning -13.50% during the first quarter. The letter notes that after a torrid 2024, technology-adjacent stocks were the most notable pocket of weakness during the first quarter. However, the manager believes that stock price reactions far exceeded any impact on the underlying businesses.