Diamond Hill Capital Management, LLC - Mid Cap Strategy on Veralto Corporation
Thesis
Diamond Hill initiated a position in Veralto, a water testing and treatment business spun out of Danaher in late 2023. The manager believes the market has underappreciated Veralto's resilient business model, strong profitability and disciplined approach to capital allocation. The opportunity is particularly attractive to the fund because investor attention has been concentrated on faster-growing data-center-related industries, leaving less thematic businesses such as Veralto relatively overlooked.
“we believe the market has underappreciated the company's resilient business model, strong profitability and disciplined capital allocation”