BCV Bulletin - Recent Trading Activity - September 5, 2025
Sell: RTX Corporation (NYSE: RTX)
We exited our position in RTX Corporation. RTX is an aerospace and defense business operating through three business segments which include Collins Aerospace, Pratt & Whitney, and Raytheon Technologies. With an attractive off-warranty install base of 100 billion dollars in their Collins Aerospace segment, and a robust backlog for new engines at Pratt & Whitney, we have found the commercial segment particularly attractive, providing a positive outlook for aftermarket growth. However, valuations across the commercial aerospace industry have escalated in recent months to multiples where we see potential downside risks. While we continue to find RTX to be an attractive business, we believe that our capital may be more efficiently allocated to other opportunities.
Buy: Eli Lilly (NYSE: LLY)
We initiated a position in Eli Lilly (NYSE: LLY), a premier pharmaceutical company with a 150+ year history and a leader in the rapidly growing market for obesity and diabetes treatments. Our rationale is driven by its portfolio of highly effective, best-in-class medicines and a deep pipeline of new drugs in development, designed to maintain its competitive edge. The opportunity to invest is timely, as the broader healthcare sector has faced pressure from ongoing government discussions about pharmaceutical tariffs. We view this position as currently the best name in a challenged sector at an attractive valuation.
This BCV Bulletin is intended for residents of the provinces and territories in which we are registered, is not meant to be a solicitation to any persons not resident in those jurisdictions and does not constitute an offer to buy or sell our products or services. Any opinions expressed are just that and are subject to change. Information is provided on a best-effort basis and its accuracy cannot be guaranteed. Information may also be provided from third party sources which are believed to be reliable, but we do not guarantee its accuracy or completeness. Certain statements may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This BCV Bulletin has been prepared for general informational purposes only, is not intended as investment and/or financial advice on any subject matter and the securities mentioned should not be construed as a recommendation for any specific securities. ©BCV Asset Management Inc. 2025.
