Ayalon Trust Fund (4D) Global Stocks on Constellation Software Inc.

Constellation Software is a serial acquirer of vertical-market software companies and has historically compounded earnings at approximately 20% annually since its IPO. Its shares fell more than 50% from their peak after founder Mark Leonard retired for health reasons and investors became concerned that artificial intelligence could threaten many of its software subsidiaries. The fund believes the subsidiaries provide vital and often difficult-to-replace services, while CSU can adapt its acquisitions and operating model to the AI environment. The lower valuations across software may also allow CSU to acquire additional businesses at bargain prices, and the company has already invested a record amount of free cash flow into acquisitions during 2026. The manager explicitly recommends purchasing the shares at a forward P/E of approximately 15 and is continuing to hold and increase exposure.