Fiduciary Management Portfolio Holding: Gates Industrial Corporation plc

GTES: Engineered power transmission & fluid power solutions leader. Blackstone 27% overhang, destocking & end market challenges provide opportunity in high-quality industrial with solid through-cycle growth prospects & re-rating potential from 12x 2024 P/E. Replacement-driven markets + growth initiatives (chain-to-belt conversions, personal mobility, auto aftermarket) drive 2x industrial production revenue growth. Margin expansion from cost reduction & productivity initiatives. Attractive EPS growth & return profile warrant re-rating vs high-quality industrial peers.

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