Diamond Hill Capital Management, LLC - Small-Mid Cap Strategy on Veralto
Thesis
Veralto is a water testing and treatment provider spun out of Danaher in late 2023. Diamond Hill initiated a position because it believes the market underappreciates the resilience of the business model, strong profitability and disciplined capital allocation. The manager views these qualities as particularly attractive amid the market's focus on data center-related growth.
“the market has underappreciated the company’s resilient business model, strong profitability and disciplined capital allocation”