Two Management Calls: Enterprise Group and Ondo Insurtech

Bullish on one, out on the other

This week I had calls with two of the management teams of companies we are invested in, mainly to talk about their recent results. We are no longer invested in one of these companies, for reasons I will explain today.

The two companies were Enterprise Group (high-quality business, with growth ahead and a bargain multiple) and Ondo Insurtech (high-growth, riskier business but with lots of potential). We sold Ondo Insurtech for reasons I will disclose in this article, along with what would need to happen for me to get back into the company.

So, with no further delay, let’s start. We will update valuations and our views on the companies mentioned accordingly.

Enterprise Group – call with management
Early this week I hopped on a call with Des from Enterprise Group, one of our positions that I plan on increasing. I think they have a great business, an incredibly cheap valuation, and are poised for an inflection point in FCF next year. With strong growth tailwinds, this company could be trading at a +10% FCF yield on next year’s numbers. We talked about LNG in Canada, client contracts, new projects, acquisition integration, and we got interesting news about their capital allocation going into next year. The conversation lasted about 40 minutes, and I was able to get it fully recorded for you. Here it is: