Touchstone Balanced Fund on Cencora, Inc.
Thesis
The fund initiated a position in Cencora during Q2 while modestly increasing its overall equity exposure. The letter does not provide a company-specific catalyst, target price or valuation for the position. The investment falls within the fund's broader preference for high-quality companies with durable competitive advantages, strong returns on capital and pricing power. Management remains constructive but is retaining flexibility because equity and credit valuations are expensive by historical standards.
“initiating positions in QXO, Inc. (Industrials sector), SAP SE (IT sector), Blackstone, Inc. (Financials sector), and Cencora, Inc.”
Key risks
- Equity valuations are expensive relative to history
- Continued policy and geopolitical uncertainty