To The Moon

During 13F season, one of the most useful exercises is comparing the holdings of several high-quality growth funds to see where their portfolios overlap.

$MasterCard(MA)$ and $Visa(V)$ sit at the top of the list, with all six funds holding both names. But the more interesting opportunities may come from the companies with less consensus, where fewer investors are paying attention. $Moody's(MCO)$ $Fair Isaac(FICO)$ $Alphabet(GOOGL)$ $Microsoft(MSFT)$ $Amazon.com(AMZN)$ $S&P Global(SPGI)$ $ASML Holding NV(ASML)$ $CCC Intelligent Solutions Holdings Inc.(CCC)$ $CANADIAN PAC KANS CITY LTD(CP)$ $Copart(CPRT)$ $GE Aerospace(GE)$ $Meta Platforms, Inc.(META)$ $O'Reilly(ORLY)$ $Stryker(SYK)$ $TransDigm(TDG)$ $Waters(WAT)$

One name that stands out is $Fortinet(FTNT)$ , which is also one of the highest-quality companies in my portfolio.

The numbers make a strong case: revenue has compounded at 18%, while free cash flow per share has grown at 23%. Fortinet also generates a 43% cash return on capital, has reduced its share count by 11%, and keeps stock-based compensation below 10% of operating cash flow.

That combination of growth, cash generation, capital efficiency and shareholder returns makes Fortinet particularly interesting among the less crowded names. The bigger question is whether the market is fully recognizing that quality.

What are your thoughts on Fortinet?