Meridian Contrarian Fund on Trimble Inc.
Thesis
Trimble provides positioning, modeling and data-analytics tools that digitize and automate workflows in construction, agriculture, transportation and geospatial markets. Meridian views Trimble as a secular winner because its hardware integration, proprietary technology and deeply embedded workflows create a durable competitive moat. The fund has historically used cyclical weakness in Trimble's end markets to add opportunistically to the position. Although investors have worried that AI could disrupt software vendors, Meridian believes Trimble's proprietary data, hardware integration and customer relationships provide meaningful protection from new competitors.
“Our investment is grounded in the view that Trimble is a secular winner.”
Key risks
- The market has re-rated software stocks perceived as vulnerable to AI-driven competition.
- Trimble is exposed to cyclical downturns in its end markets.