Tariffs Turbulence: Finding Value in the Noise

In April and May, a surge in tariff-related headlines sent waves through the equity markets. As investors reacted to shifting trade policies and ongoing geopolitical uncertainty, the resulting volatility created sharp but often short-lived price dislocations across sectors.

At Cambiar, we view these volatility episodes not as threats, but as opportunities. While headlines can drive short-term fear, our focus remains on long-term fundamentals. The recent market pullback enabled our team to initiate positions in three quality businesses, each offering compelling entry points and distinct return drivers. These additions reflect our Quality | Price | Discipline (QPD) philosophy in action.

The Cambiar Large Cap Value portfolio is built with a focus on durable, wide-moat businesses that can compound value through varying market regimes.

Below, we spotlight the new names and explain why we believe they’re poised to create value in the Cambiar Large Cap Value portfolio.

Flutter (FLUT): Scaling the Digital Gaming Leaderboard

Flutter is a global leader in online sports betting (OSB), anchored by FanDuel, the #1 sportsbook in most legal U.S. markets. With 40-45% domestic market share and expansion across 39 states, Flutter is capitalizing on a powerful network-driven growth cycle in a projected $200B global market.

Beyond scale, Flutter’s edge lies in operational leverage. Its dominance in tech, payments, and marketing creates a reinvestment loop that continually improves the user experience. While some worry about regulatory shifts or consumer softness, we believe Flutter’s strategic advantage and long runway for U.S. legalization, including untapped giants like California, Texas, and Florida, support a compelling long-term investment case.

Target (TGT): Retail Resilience at a Discount

A household name in U.S. retail, Target offers a differentiated merchandising model with broad appeal. Its balanced 50/50 revenue split between essentials and discretionary goods provides a built-in buffer against economic cyclicality.

Recent tariff chatter sparked volatility in Target’s shares as the market grappled with potential cost headwinds from Chinese imports. Yet we see this as noise relative to the company’s structural strengths – namely pricing power, sourcing agility, and strong brand loyalty.

With an attractive valuation, stable dividend, and a renewed focus on digital, logistics, and in-store experience, Target represents a high-quality business mispriced by macro-overreaction exactly the kind of setup that aligns with Cambiar’s QPD lens.

Weyerhaeuser (WY): Rooted in Real Assets

Weyerhaeuser is one of the largest timberland owners in North America, with over 12 million acres in the U.S. and long-term licenses in Canada. The company operates as a vertically integrated timber REIT, spanning harvesting, wood product manufacturing, and real estate development.

The company’s dominant asset base, tax-efficient REIT structure, and commitment to sustainable forestry create multiple paths to value creation. With recent price weakness, we identified an attractive entry point, supported by steady domestic housing demand and long-term supply constraints.

Weyerhaeuser adds natural resource exposure to the portfolio, while remaining aligned with our focus on cash flow durability and disciplined capital allocation.

Looking Ahead

Market turbulence will come and go but for patient investors, it can uncover compelling long-term opportunities. These three names exemplify Cambiar’s strategy of staying calm amid chaos, identifying value where others see risk, and maintaining a portfolio with diverse, high-quality return drivers.