Bretton Fund / Bretton Capital Management, LLC on Constellation Software Inc.

Constellation Software acquires small vertical-market software businesses at low prices and uses their cash flows to fund additional acquisitions. Bretton believes these niche products are more defensible than the market currently assumes because customers often have limited economic incentive to switch systems even if AI makes competing software cheaper to build. The fund expects some customers to self-build or adopt new alternatives, but sees inertia, maintenance burdens and switching costs as meaningful protection for most installed products. Bretton bought the shares at a little more than 13 times estimated 2027 free cash flow per available share, with that free cash flow expected to grow 15% to 20% in coming years.