LongRun Equity Fund / Rothschild & Co Investment Managers on Amphenol

LongRun purchased Amphenol because it combines mission-critical products with durable switching costs, pricing power and an entrepreneurial operating culture. Its connectors represent a small portion of customers' total system costs but are essential to the reliability of aircraft, factories, data centres and other electronic systems, creating strong customer incentives to remain with proven suppliers. Products are frequently designed into customer systems for years or decades, making supplier changes cumbersome, risky and expensive. The company also has a long runway for organic and acquisition-driven share gains in a fragmented interconnect market, supported by a decentralized acquisition model and strong capital allocation. AI infrastructure provides an additional structural growth opportunity because each generation of data centres requires more sophisticated power, copper and optical connectivity, while the CCS acquisition expands Amphenol's capabilities across the full interconnect spectrum. Despite trading at roughly 32 times forward earnings, LongRun considers the valuation fair given the quality of the business and expects double-digit compounding for years to come.