Summary

• The London Company Small-Mid Cap portfolio declined 3.4% during the quarter versus a 2.0% increase in the Russell 2500 Index, as both sector exposure and stock selection were headwinds.
• The fund initiated Cooper Companies, a global medical device company benefiting from high customer switching costs and leading positions in faster-growing specialty lenses that have driven above-market growth.
• The fund added to its position in CCC Intelligent Solutions Holdings Inc, believing concerns over AI disintermediation are overstated as adoption of AI-enabled products continues to gain traction.
• TLC sold Trex Company, Inc. after reassessing competitive positioning following James Hardie's acquisition of AZEK, as increased competition may pressure market share and require higher marketing spend.
• Should geopolitical and supply-shock volatility persist, The London Company expects investors to refocus on quality given the durable competitive advantages and financial flexibility of the portfolio's businesses.

Market Update

U.S. equities were mostly lower in the first quarter of 2026. The Russell 3000 declined 4%, and the S&P 500 posted its first quarterly decline in a year. The year began on a constructive note as

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