Diamond Hill Capital Management, LLC / Mid Cap Strategy on Verisk Analytics, Inc.
Thesis
Diamond Hill initiated Verisk because it is the leading provider of data and analytics to the insurance industry and operates with limited competition. Its services are deeply embedded in customer workflows and are critical to operations while representing only a small portion of total customer costs. That combination gives Verisk durable pricing power and supports consistent revenue growth. The fund also highlights the company's strong margins as part of the quality case.
“We initiated a position as its services represent a small portion of customers’ overall costs but are deeply embedded in their workflows”