GCQ Flagship PIE Fund on Mobility Global Inc.
Thesis
GCQ received Mobility Global shares following the company’s spin-off from S&P Global and then added to the position during post-spin technical selling. The fund identifies CARFAX as the crown jewel, with about 80% share of US vehicle-history reports and an essential role in providing trust in used-car transactions. GCQ views CARFAX as an industry standard with extreme pricing power. The investment case is that technical selling after the spin created an attractive valuation for a business with entrenched market share and pricing power.
“CARFAX is an industry standard with extreme pricing power.”
Key risks
- Post-spin technical selling pressure could persist.
- The thesis depends on CARFAX maintaining its dominant market position and pricing power.