We added a leading supplier of automatic-dimming mirrors for the automotive industry, Gentex Corporation (
GNTX, Financial). With over 90% market share and a long history of technological innovation and manufacturing capability, the company consistently outgrows the broader industry, sports best-in-class operating margins, and generates attractive free cash flows. Recently, the stock has underperformed due to broad- based supply chain concerns and the disruption of global automotive production. We view these issues as overblown and see this as an opportunity to own a high-quality niche franchise with excellent and improving growth prospects, well positioned to potentially benefit from growing market adoption of its essential technologies.
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