Investment Holding Profile: FTI Consulting

Investment Holding Profile: FTI Consulting

Investment Holding Profile: FTI Consulting (FCN)

It’s easy to get caught up in the extreme headlines of short-term market volatility. But it’s important to remember that when you buy a stock, you don’t own a ticker, you own a piece of a business. To distract you from the market's crazy swings, we are profiling the businesses that make up the largest holdings in our SMID Cap Core Strategy.

FTI ConsultingToday we’re highlighting FTI Consulting (FCN), another top holding as of June 30, 2022.

Background

FTI is a specialty consulting and financial advisory firm focused on restructuring, litigation, risk mitigation, and crisis management. FTI focuses on high-risk events that are incredibly important and one-time in nature for their clients (e.g., bankruptcy). In these situations, clients want a firm with a strong reputation and are less price sensitive. FTI’s clients include global corporations, banks, private equity funds, governments, and leading law firms.

Investment Case

FTI has some elements of countercyclical demand in its restructuring business. This business has been depressed, especially given the significant fiscal and monetary stimulus. If economic conditions weaken, FTI’s restructuring business is likely to improve.

Risks

We worry about low levels of consulting demand, restructuring or otherwise.

If you have additional questions about FTI Consulting (FCN) or our SMID Cap Core Strategy, please contact us. Next time, we’ll profile our holding FLEX Ltd. (FLEX).


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Investments highlighted were selected based on objective, non-performance-based selection criteria. Names are subject to change.

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