RESEARCHINVESTMENT CASES

Our signature deep-dive research reports

In our 2Xideas Investment Cases, we provide a detailed analysis on how and why we expect the respective stock to double.
We constantly monitor our Investment Cases and publish a Case Update whenever there are material developments.

  • Most recent
  • Investment theme
  • Alphabetically

MSCI

Sustainable Financial Businesses

Please sign in to access additional investment cases
MSCI provides performance and risk tools to both money managers and financial asset owners. The Company operates the “MSCI” brand for its equity indices and its ESG data offerings. The “RiskMetrics” and “Barra” brands are used for its analytics offering. MSCI’s business model is very robust with a high level of recurring revenues. Combining the various business lines, MSCI generates recurring subscription revenues that amount to 74% of total revenues with recurring asset-based fees contributing a further 24%.
Investment Case

Markel

Sustainable Financial Businesses

Please sign in to access additional investment cases
Markel is a US-based property and casualty ("p/c") insurance company with a focus on complex and hard-to-place specialty p/c risks. In addition to its insurance activities, Markel owns a portfolio of non-insurance businesses and invests a major portion of its capital base in equity securities. The Company is exceptional because of its ability to allocate capital rationally between insurance underwriting, non-insurance acquisitions, and equity investments.
Investment Case

Worldpay

Sustainable Financial Businesses

Please sign in to access additional investment cases
Worldpay is the largest merchant acquirer globally with strong positions in the US, the UK and in global e-commerce. The Company offers consumer-facing businesses access to credit and debit card payment networks such as Visa, MasterCard, American Express and Discover. In January 2018 Vantiv, a US-based merchant acquirer, took over UK-based Worldpay Group and retained the Worldpay name for the combined entity.
Investment Case

Ctrip

Expanding Consumer Franchises

Please sign in to access additional investment cases
Ctrip is the leading Online Travel Agent (OTA) in China. The Company provides customers with an online booking platform for travel related services, including transportation, accommodation, and packaged tours. In 2016, Ctrip generated revenue of CNY 19.2bn (USD 2.8bn). Ctrip operates primarily as an agent rather than a merchant. In an agency model, an OTA acts as an intermediary and does not take inventory risk.
Investment Case
Case Update

ASML

Digital Moats

Please sign in to access additional investment cases
ASML is one of the world’s leading manufacturers of microchip- making equipment. The Company specializes in lithography systems and the corresponding process control technology. Currently, the industry is at the start of a transition from the well-established "immersion deep ultra violet" (DUV) lithography to "extreme ultraviolet" (EUV) lithography, which is a key technology for future shrinking transistor size. ASML is the leader in both technologies.
Investment Case
Case Update
Log Book - ASML Investor Day November 2019

PolyOne

Smart Engineering

Please sign in to access additional investment cases
PolyOne Corporation is the world's largest provider of specialized polymer mixes used by processors of plastic materials. PolyOne’s business model is driven by product innovation and highly specialized technical expertise in the compounding of polymers. The Company produces color and additive mixes, and engineered materials for a wide range of end-markets such as transportation, consumer, healthcare and packaging.
Investment Case

Amorepacific

Expanding Consumer Franchises

Please sign in to access additional investment cases
Amorepacific Group is one of Asia's leading cosmetic companies. The Company is focused on the skin care category in the premium and masstige segments. Skin care accounts for about 70% of the Company’s sales, the remainder coming mostly from color cosmetics. Almost all sales to Chinese tourists in Korea are made in the highly profitable travel retail channel, primarily in duty-free stores.
Investment Case
Case Update

ResMed

Health Care Dilemma

Please sign in to access additional investment cases
ResMed is a US-based global medical device manufacturer. The Company revolutionised the treatment of sleep apnea with the development of the continuous positive airway pressure ("CPAP") device. ResMed was founded in Australia in 1989 by the current chairman Peter Farrell, along with Dr Colin Sullivan, the inventor of CPAP. With a 45% market share, ResMed is the global market leader in treatment of sleep apnea.
Investment Case
Case Update

Richemont

Expanding Consumer Franchises

Please sign in to access additional investment cases
Compagnie Financière Richemont SA ("Richemont"), headquartered near Geneva, Switzerland, is the global leader in high-end luxury watches and branded jewellery. The Company's sales in fiscal year 2017, ending March 31, amounted to EUR 10.6bn. Richemont differs from its peers because of its primary focus on high-end luxury, where product cycles are very long and less prone to fashion changes.
Investment Case
Case Update

Thermo Fisher Scientific

Smart Engineering

Please sign in to access additional investment cases
Thermo Fisher Scientific ("TMO") is the world's largest company in the analytical and life science tools industry. These tools are used in laboratories to perform analyses of materials, compounds and life science ingredients in scientific, research and development, as well as testing and quality control environments. Servicing the instruments and providing consumables represents a major source of recurring revenues for TMO. In 2017, 65% of the Company’s revenues were recurring.
Investment Case
Case Update

Verisign

Digital Moats

Please sign in to access additional investment cases
Verisign is a global leader in Domain Names and Internet Security. The Company operates key parts of the Internet Infrastructure and is the world's largest registry operator. Registry operators are the "wholesalers" of the Internet domain names, while domain name registrars act as the "retailers", working directly with businesses and consumers to register domain name addresses.
Investment Case
Case Update

Tsuruha

Expanding Consumer Franchises

Please sign in to access additional investment cases
Tsuruha is a domestic Japanese drugstore retailer, operating 1,700 retail outlets selling non-prescription drugs, cosmetics and various household products. In addition, Tsuruha also offers prescription pharmaceuticals through 417 in-store and standalone pharmacies.
Investment Case
Case Update

Novo Nordisk

Health Care Dilemma

Please sign in to access additional investment cases
Novo Nordisk ("Novo") is the market leader in the USD 45bn global diabetes care market. Based in Denmark, the Company is focused on the development, manufacture, and sale of long-cycle drugs in chronic diseases. The Company markets its products in over 180 countries and generated sales of DKK 112bn (USD 16.9bn) in 2017. Novo's reporting segments comprise Diabetes and Obesity Care and Biopharmaceuticals.
Investment Case
Case Update
Novo Nordisk Log Book
December 2015

Henry Schein

Health Care Dilemma

Please sign in to access additional investment cases
Henry Schein is the world's largest distributor of healthcare supplies to dental, medical and animal healthcare practitioners. The Company also provides its customers with a wide range of financial and consulting services as well as practice management software. Henry Schein operates three distribution businesses, each servicing their respective customer vertical, and a software and consulting business that services all customer verticals.
Investment Case
Case Update

Fastenal

Service Hubs

Please sign in to access additional investment cases
Fastenal is the largest distributor of fasteners in the US. With 2016 sales of USD 4.0bn, the Company is three times the size of its closest competitor. It is far more profitable than its peers with an EBIT margin in 2016 of 20% and a RoAIC of 25%. In 2016, Fasteners accounted for 38% of total sales and non-fastener industrial supplies (“non-fasteners”) sales for 62%.
Investment Case
Case Update
Fastenal Log Book
November 2015

Compass

Service Hubs

Please sign in to access additional investment cases
Compass is the world's largest contract caterer. Contract catering is business-to-business catering on a large scale, such as for schools, hospitals, entertainment venues and nursing homes. Sales in the Company’s fiscal year 2017, ending in September 2017, amounted to GBP 23bn. The Company is based in the UK and employs more than 550,000 people in around 50 countries.
Investment Case
Case Update

Analog Devices

Digital Moats

Please sign in to access additional investment cases
Analog Devices is a world leader in the design, manufacturing and marketing of a broad portfolio of products based on high-performance analog, mixed-signal and digital signal processing technologies. The Company's products include integrated circuits, algorithms, software, and subsystems. Analog Devices is focused on solving the engineering challenges associated with signal processing in all types of electronic equipment.
Investment Case
Case Update

IPG Photonics

Smart Engineering

Please sign in to access additional investment cases
IPG Photonics ("IPG") is the global leader in fiber laser technology. Fiber lasers produce laser light within speciality optical fibers, and are an alternative and superior technology to traditional crystal and gas lasers such as YAG (Yttrium Aluminum Garnet) and CO2 lasers. The key market for IPGP’s fiber lasers is materials processing, which includes a diverse range of processes such as cutting, marking, engraving, welding, brazing, hardening and 3D-printing of metals and other materials. Overall, materials processing accounts for over 80% of IPGP’s revenues.
Investment Case
Case Update

Ansys

Digital Moats

Please sign in to access additional investment cases
Ansys develops and markets the globe's leading engineering simulation software. The Company's software allows R&D engineers to predict the performance and real world behavior of components and products at an early stage of development, typically before building a first prototype. The Ansys software package is an integrated platform with a broad set of simulation capabilities.
Investment Case
Ansys Log Book
September 2017

McCormick

Expanding Consumer Franchises

Please sign in to access additional investment cases
Founded in 1889, McCormick is a global leader in flavor manufacturing, distribution and marketing. The Company produces a variety of spices, seasoning mixes, and herbs and distributes them in over 150 countries. McCormick is divided into two segments: Consumer and Industry. The company’s two largest customers are Wal-Mart and Pepsi Co, each representing 11% of group revenue. In the Consumer segment, McCormick has over 25 different brands in its product portfolio. McCormick is the Groups largest and most popular brand.
Investment Case
Company Log Book

Wabtec

Smart Engineering

Please sign in to access additional investment cases
Wabtec is one of the world’s largest providers of engineered components for the rail transportation market. The Company will double in size in Q1 2019 as the merger with GE Transportation closes, generating sales of USD 8bn. Wabtec will also become the global leader in the manufacturing of diesel-electric freight locomotives. Wabtec continues to grow the highly profitable aftermarket business, derived from a captive installed base. Furthermore, Wabtec is a successful industry consolidator. Thanks to high barriers to entry, we believe that Wabtec’s outstanding profitability is sustainable.
Investment Case

Huazhu

Expanding Consumer Franchises

Please sign in to access additional investment cases
Founded in 2005, the Huazhu Group ("Huazhu") is a leading multibrand hotel group operating in China. The Company is focused on the economy and midscale segments and does not compete directly with the well-established four- and five-star international chains in the upscale and luxury segments. The Company operated 11 branded hotel chains totaling over 3,700 hotels with 379,000 rooms in 2017.
Investment Case