In the final quarter of the previous year, Louisbourg Investments started a notable investment in Boyd Group Services by purchasing 46,456 shares, amounting to an estimated $7.27 million based on average trading prices during that period. This position was disclosed in an official filing submitted to the U.S. Securities and Exchange Commission dated January 16, confirming that the fund's holdings in Boyd Group increased from zero to $7.27 million by the end of the quarter.
The new stake in Boyd Group represents 1.45% of Louisbourg Investments' assets under management as reported in their 13F filing. This acquisition joins the fund’s diversified portfolio, which includes prominent holdings such as Canadian National Railway (NYSE: CNI) valued at $28.72 million or 5.7% of assets, tech giants Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) with $14.78 million (2.9%) and $13.29 million (2.6%) respectively, along with BlackRock’s iShares S&P 500 ETF (NYSEMKT: IVV) and Wheaton Precious Metals (NYSE: WPM).
At the market close on January 15, Boyd Group Services' shares were priced at $162.66, standing approximately 17% higher than their initial public offering price of $141 set in November. The company, headquartered in North America, provides non-franchised collision repair services and retail auto glass replacements through a network of branded centers. Its operations span a range of services, including collision repair, glass replacement, and calibration services.
Boyd Group generates the majority of its revenue through insurance-paid vehicle repairs and auto glass servicing. The firm relies on a widespread network of service outlets and partnerships with third-party administrators to serve individual vehicle owners and insurance companies. Its business model emphasizes geographic density and insurer relationships, elements that contribute to its scalable operations across both Canadian and U.S. markets.
Financial results from the third quarter underscore a pattern of revenue growth, primarily fueled by same-store sales gains and the continual expansion of repair centers throughout North America. Although profit margins face pressure due to rising labor and parts expenses, Boyd Group’s management has maintained pricing discipline and leveraged insurer negotiations effectively to offset inflationary impacts.
The investment by Louisbourg Investments signals a strategic choice to back a company operating in a defensive niche where the volume of repairs, geographical coverage, and relationships with insurers are crucial factors. Unlike other sectors, demand in the vehicle repair segment correlates with the frequency of accidents and miles driven rather than consumer discretionary spending cycles. This dynamic imparts a resilient quality to the business, even amid broader economic slowdowns in automotive sales.
Considering the fund’s allocation to Boyd Group as roughly 1.45% of its portfolio, it constitutes a meaningful yet measured position. This aligns with the investment philosophy of favoring businesses that generate durable cash flows, akin to the fund’s holdings in Canadian National, Microsoft, and Wheaton Precious Metals. For investors with a long-term horizon, this stake appears less speculative than many post-IPO trades, pointing instead toward early positioning in a company poised for sustained, if understated, growth.