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Argosy Investors, an investment management company, released its Q1 2026 investor letter. A copy is available to download here. The letter discussed the current transformative investment landscape driven by the AI capex boom. The author expressed skepticism about the durability of the earnings flowing to its market participants and suppliers. The main challenge during capex booms is balancing supply and demand, especially the accelerated shift of AI technologies. While companies benefit from rising volumes and prices, the potential for earnings to be overstated becomes a concern if supply catches up quicker than anticipated. In this backdrop, the firm remains cautious in taking investment decisions. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Argosy Investors highlighted Pool Corporation (NASDAQ:POOL) as a newly added position. Pool Corporation (NASDAQ:POOL) is a leading distributor of swimming pool supplies, equipment, related leisure, irrigation, and landscape maintenance products. On June 4, 2026, Pool Corporation (NASDAQ:POOL) closed at $183.22 per share. One-month return of Pool Corporation (NASDAQ:POOL) was -6.78%, and its shares lost 37.22% over the past 52 weeks. Pool Corporation (NASDAQ:POOL) has a market capitalization of $6.78 billion.
Argosy Investors stated the following regarding Pool Corporation (NASDAQ:POOL) in its Q1 2026 investor letter:
"Pool Corporation (NASDAQ:POOL) is the dominant wholesale distributor of swimming pool and related outdoor living products, with 35-40% market share and 456 branches nationwide; the next closest competitor has 8-10% share, but was recently acquired by Home Depot (HD) as part of the SRS Distribution transaction. The company has been in a long-term slump post-COVID due to the unwind of shortage-driven chlorine pricing and the surge in pool building during the pandemic. 60% of the company's sales are non-discretionary service-based purchases, and the company has historically generated ROICs in the 25 30% range, very strong relative to almost any physical product-based business. The company now sells for 15.5x forward earnings, which seems entirely too low for a high quality market leader with strong ROICs and normally mid-single digit organic growth and future consolidation optionality. The company is at all-time low valuations and based on the trend could be headed lower short-term. This suggests the external environment has changed in ways disadvantageous to POOL. The main risks here are 1) macro softness around continued pool construction headwinds, somewhat similar to FND's issues, and 2) the alleged aggressiveness of Heritage Pool Supply in being a formidable competitor to POOL with the support of Home Depot's capital. With Brad Jacob's launch of QXO (QXO), focused on building products distributors, as his latest iteration of an industry roll-up, after massive success in waste management (United Waste Syst
In its first-quarter 2026 investor letter, Argosy Investors highlighted Pool Corporation (NASDAQ:POOL) as a newly added position. Pool Corporation (NASDAQ:POOL) is a leading distributor of swimming pool supplies, equipment, related leisure, irrigation, and landscape maintenance products. On June 4, 2026, Pool Corporation (NASDAQ:POOL) closed at $183.22 per share. One-month return of Pool Corporation (NASDAQ:POOL) was -6.78%, and its shares lost 37.22% over the past 52 weeks. Pool Corporation (NASDAQ:POOL) has a market capitalization of $6.78 billion.
Argosy Investors stated the following regarding Pool Corporation (NASDAQ:POOL) in its Q1 2026 investor letter:
"Pool Corporation (NASDAQ:POOL) is the dominant wholesale distributor of swimming pool and related outdoor living products, with 35-40% market share and 456 branches nationwide; the next closest competitor has 8-10% share, but was recently acquired by Home Depot (HD) as part of the SRS Distribution transaction. The company has been in a long-term slump post-COVID due to the unwind of shortage-driven chlorine pricing and the surge in pool building during the pandemic. 60% of the company's sales are non-discretionary service-based purchases, and the company has historically generated ROICs in the 25 30% range, very strong relative to almost any physical product-based business. The company now sells for 15.5x forward earnings, which seems entirely too low for a high quality market leader with strong ROICs and normally mid-single digit organic growth and future consolidation optionality. The company is at all-time low valuations and based on the trend could be headed lower short-term. This suggests the external environment has changed in ways disadvantageous to POOL. The main risks here are 1) macro softness around continued pool construction headwinds, somewhat similar to FND's issues, and 2) the alleged aggressiveness of Heritage Pool Supply in being a formidable competitor to POOL with the support of Home Depot's capital. With Brad Jacob's launch of QXO (QXO), focused on building products distributors, as his latest iteration of an industry roll-up, after massive success in waste management (United Waste Syst
