By: Rob Wertheimer
We strongly disagree with the prevailing investor perception on rental company quality, and think that these misperceptions create the largest alpha in our coverage. That’s even given 40% outperformance versus the XLI since 2017. Two things need to be true for our view to be correct; these leaders really do need to have a sustainable competitive advantage, and there needs to remain enough runway to deploy capital for years to come. This note is on the moat.