The Best Ideas I Found in Q2 2025 Investor Letters (Part I)
From the letters of SVN Capital (Sri Viswanathan), Bristlemoon Capital and Kathmandu Capital (Vincent Lo).
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Companies mentioned in the letters
Triveni Turbine Limited (TTL)
APi Group (APG)
Salesforce (CRM)
UnitedHealth Group (UNH)
ACM Research (ACMR)
Grupo Aeroportuario del Centro Norte (OMAB)
Triveni Turbine Limited (TTL) – SVN Capital
Shreekkanth “Sri” Viswanathan presents Triveni Turbine as a compelling long-term investment in a niche industrial sector with significant global demand.
TTL is a leading global manufacturer of industrial steam turbines up to 100 megawatts, holding the #2 global market share in the sub-30 MW segment behind Siemens. It serves over 80 countries and caters to industries such as sugar, steel, textiles, and pulp and paper, with turbines used for both power generation and industrial processes.
What makes TTL stand out is its capital-light business model: projects only begin after down payments are secured, and cash flows are structured throughout the manufacturing cycle. In addition, ~50% of revenues come from export sales, which enjoy 1.5–2.5x higher margins than domestic contracts. Even more attractive is the aftermarket segment, which includes maintenance and parts — contributing around 1/3 of revenues at 4–5x the margin of domestic sales. This high-margin recurring revenue stream has ample room for expansion.
The company has grown organically since its 2011 spinoff from Triveni Engineering and is still owner-operated — a quality SVN Capital seeks across its portfolio. The Sawhney family controls ~56% of shares, and the business maintains a net cash balance sheet, funding all CapEx internally. Since the spinoff, sales and operating income have grown over 6.5x, and the stock has appreciated more than 15x.
The global steam turbine market is expected to grow from US$27 billion in 2024 to US$36 billion by 2033, with sub-100 MW turbines capturing a significant portion. TTL’s order book has compounded at 38% CAGR since FY 2021, and the company continues to outgrow the broader market. At current prices, Sri sees a 15%+ CAGR return potential over the next 5y, supported by robust fundamentals, export tailwinds, and prudent capital allocation.
Ideas from Bristlemoon Capital
is a long-only investment firm based in Sydney, Australia, with a concentrated, global equity portfolio grounded in fundamental research and long-term thinking.APi Group (APG)
APG is a leader in fire and life safety services, operating in essential and regulated sectors like fire alarms, HVAC, utilities, and elevator services. Bristlemoon initiated a position in April 2025 after a market selloff gave them an attractive entry point. The company's recurring revenue comes primarily from mandated inspections and maintenance (ISM), which are less sensitive to economic cycles or tariffs. The Safety Services segment, which includes fire and elevator inspections, comprises ~74% of revenues and drives consistent, high-margin growth.
APG’s business model emphasizes small inspection jobs that lead to higher-value maintenance work, creating sticky customer relationships. The company’s organic growth strategy—led by volume, not price—has delivered 19 straight quarters of double-digit ISM growth. Bristlemoon believes APG’s “inspection-first” strategy, combined with a scalable go-to-market model, gives it a durable advantage over local competitors.
The company has also completed over 125 acquisitions, with Chubb (acquired in 2022) marking a major international expansion. Management is focused on margin improvement rather than top-line growth, with bolt-on M&A expected to continue contributing 3–4% to revenue. Despite dilution from share issuance and preferred stock, Bristlemoon sees upside driven by EPS compounding, operating leverage, and steady demand.
Salesforce (CRM)
Bristlemoon sees Salesforce as an undervalued platform play with hidden upside in agentic AI.
CRM, which pioneered SaaS software delivery, is now rolling out Agentforce, its autonomous AI assistant for sales and service workflows. There’s a US$155B market opportunity for agentic AI by 2030, with Salesforce well-positioned to capture value due to its data ownership and massive distribution footprint.
Salesforce’s apps serve as systems of record for customer interactions, meaning the company controls proprietary data critical for AI performance. Bristlemoon believes that Salesforce’s closed data ecosystem (e.g. limiting third-party access to Slack data) ensures that only their tools can unlock the full value of this data. Additionally, with 150K+ customers already using Salesforce tools, they have a built-in advantage in AI distribution.
Data Cloud and Agentforce have already generated over US$1B in ARR, growing rapidly. Yet Salesforce is currently trading at just 17x FCF, pricing in little to no value from its AI initiatives. Bristlemoon views Agentforce as a free call option on a transformative opportunity, and expects the stock to re-rate as investors recognize Salesforce as a true AI contender.
UnitedHealth Group (UNH)
UNH suffered a sharp decline—over 50% from its highs—after disappointing Q1 2025 earnings, executive turnover, and a DOJ investigation into potential Medicare fraud. Bristlemoon views this drawdown as a chance to buy into the U.S.’s largest healthcare services provider at a compelling risk/reward setup.
UNH’s core businesses are UnitedHealthcare (health insurance) and Optum (care delivery, pharmacy, and analytics). Trouble originated from its Medicare Advantage (MA) business, where unexpected patient utilization, inadequate risk adjustments, and difficulties implementing a new risk model (V28) led to major earnings downgrades. These issues raised concerns about UNH’s recent culture and growth-at-all-costs approach.
Despite the chaos, Bristlemoon sees 2026 EPS rebounding to US$24–$25 and thinks a 12–15x forward P/E multiple provides valuation support. The investment is framed not as a bet on UNH’s prior premium multiple returning, but as a value trade with solid upside, limited downside, and the potential to diversify the portfolio away from more idiosyncratic names.
Full letter
Ideas from Kathmandu Capital
ACM Research (ACMR)
Kathmandu Capital initiated a position in ACM Research, the leading Chinese manufacturer of wafer cleaning equipment for semiconductor fabrication. The thesis is centered on China's urgent push toward semiconductor self-sufficiency following escalating trade and geopolitical tensions with the U.S. While China represents 35% of global semiconductor consumption, it only produces 7% domestically. ACMR, with a 14% share in China’s wafer cleaning market, is well-positioned to benefit as foreign competitors like Tokyo Electron and Lam Research lose share due to export restrictions.
ACMR is growing rapidly — its top-line has compounded at 20% annually for over a decade and is currently growing faster than both Chinese and Western peers. Despite this, the company trades at a valuation discount to all of them. Structurally, ACMR is a U.S.-incorporated holding company that owns 83% of ACMR Shanghai, which trades at more than 2.5x the valuation multiple of the U.S. shares. While management has taken no steps to close this gap, Kathmandu views that spread as a free call option.
With secular tailwinds from China's chip independence movement and a real chance of valuation convergence, ACMR is framed as an asymmetric bet on both structural growth and geopolitical arbitrage — with downside protection via its Delaware incorporation and proven growth record.
Grupo Aeroportuario del Centro Norte (OMAB)
OMAB operates 13 Mexican airports under a long-term government concession that can be extended to 100 years. Vincent's thesis rests on three pillars: monopoly-like dynamics, capital efficiency, and exposure to the nearshoring boom in Mexico.
Airports are natural monopolies due to geographic exclusivity, high fixed costs, and strict regulatory barriers — and OMAB benefits from these characteristics. It outsources most services while earning consistent cash flow through regulated passenger fees. With 41% FCF margins and pre-set five-year capital spending plans (MDPs), OMAB enjoys predictable profitability.
Vincent believes OMAB is especially well positioned for nearshoring-driven industrial growth in Monterrey, Mexico’s industrial hub. As U.S. companies shift supply chains closer to home, OMAB could see rising passenger traffic and cargo demand. An upcoming revision to the Master Development Plan in 2025 may also provide upside — especially if the government eases terms to support recovery from recent headwinds, including COVID disruptions, airline engine issues, and higher concession taxes.
In short, OMAB offers a rare combination of stable infrastructure economics, emerging market growth exposure, and potential regulatory catalysts — all wrapped in a capital-light model with visible returns.
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