Summary

• The London Company Small-Mid Cap portfolio declined 3.4% during the quarter vs. a 2.0% increase in the Russell 2500 Index as sector exposure and stock selection were headwinds.
• Entegris, Inc. was a top contributor, benefiting from improving fab utilization and accelerating AI-driven semiconductor demand as advanced node transitions increase materials intensity per wafer.
• Qualys, Inc. sold off sharply as Anthropic's announcements around Claude's cybersecurity capabilities triggered indiscriminate selling across cyber names, despite a strong earnings report.
• The London Company initiated a position in Cooper Companies, a high-quality business in an oligopolistic industry where four players control 95% of the market.
• The London Company exited Trex Company, Inc. after reassessing competitive positioning following James Hardie's acquisition of AZEK, noting that increased competition may pressure market share.

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