Touchstone Balanced Fund on QXO, Inc.
Thesis
The fund initiated a position in QXO during Q2 while modestly increasing overall equity exposure after raising its target risk budget from 25% to 35%. The commentary does not provide a company-specific catalyst or valuation for QXO. The purchase sits within a portfolio that emphasizes high-quality companies with durable competitive advantages, strong returns on capital and pricing power. Management remains constructive on equities but is balancing that view against elevated valuations and policy uncertainty.
“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