There are 3 very good reasons to own this stock (i) exposure to the secular growth in global regulation and compliance, (ii) exposure to a quality operation with good visibility that can be improved by top grade management and (iii) Wilmington is a business that can be scaled significantly and has immediate firepower to fund earnings enhancing acquisitions. And all of this is available at an attractive valuation! Last year the stock performed well for us with a strong positive return (capital 14.2%, with another 3.3% in dividends) against a weak equity market. We see further upside potential in the short and medium term and retain the stock in our best ideas portfolio. Our 3 year earnings CAGR is 11.8% with the potential for acquisitions to lift earnings by 7% to 12%.
