Hilan Ltd.
Hilan Ltd. engages in the provision of Software as a Service (SaaS) for the purpose of managing the enterprise human capital. Its solutions include payroll, human resources, time and attendance, pension, analytics, and business process outsourcing (BPO). The firm offers its services to the industry, high-tech, finance, academic, communications, healthcare, municipal, transportation, retail, education, government, social care, associations, and hotels sectors. It operates through the following segments: Payroll Services, Human Resources, and Organizational Systems, Business Solutions, Computing Infrastructures, and Marketing of Software Products. The Payroll Services, Human Resources, and Organizational Systems segment provides payroll management services, pension operations, enterprise resource planning, other value-added services, and attendance, human resources, business, financial, and relationship management. The Business Solutions segment is involved in the sale of outsourcing and technological value-added solutions, as well as solutions and projects in the field of computing, digital, and innovation. The Computing Infrastructures segment sells solutions in the field of computing infrastructures, managed public and private clouds, advanced information security, and cyber. The Marketing of Software Products segment is composed of the distribution and assimilation of software products and solutions in the field of control, data, analytics and business intelligence, infrastructures and applications in the information technology world, document and content management, information and cyber security, and content delivery network. The company was founded on December 16, 1992 and is headquartered in Tel Aviv, Israel.
COMMENTARY
Global equities extended their rally in June, supported by easing trade tensions, sustained earnings optimism, and growing expectations of central bank rate cuts. The 90-day US-China tariff truce agreed in May held firm, with both sides announcing a framework to maintain reduced reciprocal tariffs. This added clarity on trade policy contributed to improved sentiment across global markets, despite lingering geopolitical risks.
Central banks in major economies struck a more dovish tone, with several signalling potential rate cuts later in the year. This shift helped drive yields lower and supported equity valuations. Inflation remained contained across most developed markets. In the US, the consumer price index rose 2.35% year on year in June, broadly in line with expectations and within the Federal Reserve’s target range. In Europe, preliminary inflation data showed a modest uptick but stayed manageable, reinforcing the case for further monetary support.
US equities continued to perform well, supported by momentum in technology and AI-related companies. Small and mid-sized companies also participated in the rally as investor appetite broadened. In Europe, performance was mixed. Some markets advanced on the back of fiscal support and political stability, while others lagged due to profit-taking and currency-related pressures. Sector rotation weighed on large caps, particularly in areas that had led earlier in the year.
Asian markets also posted gains. Japan benefited from a weaker currency and resilient domestic demand, while Chinese equities advanced on the back of targeted stimulus and ongoing trade de-escalation. Taiwan and Korea remained standouts, lifted by strong results across their technology sectors and favourable currency trends.
Overall, the macro backdrop remained constructive. While investors welcomed policy clarity and improving sentiment, attention remains focused on the durability of the US-China agreement, inflationary pressures, and broader geopolitical risks.
Portfolio highlights
The Fund returned -0.1% in June, trailing its benchmark following three consecutive months of outperformance.
The underperformance in June was largely attributable to North American positions, with four specific holdings driving the bulk of the decline.
North West Company, the Canadian retailer serving remote communities across North America, was a key detractor as wildfire-related disruptions, rising operating costs, and reduced government support weighed on its share price. While this position ultimately delivered a gain of over 20% during its life in the fund, we have now fully exited. Grand Canyon Education, a US-based education services provider, also declined as investors reacted to concerns surrounding the US spending bill. Nonetheless, we retain conviction in the company’s long-term prospects, supported by a resilient business model.
Topicus, a Canadian vertical market software business, experienced a modest pullback in June. However, it has since rebounded strongly and remains a solid contributor to long-term fund performance. On Holding, the Swiss-headquartered but US-listed athletic footwear brand, gave back some gains following notable appreciation in April and May. Despite this short-term retracement, the business remains well positioned within our long-term thematic framework.
Cantaloupe was the top contributor during the month. The US-based provider of self-service payment and software solutions announced its acquisition by 365 Retail Markets in an $848 million all-cash transaction, representing a 34% premium to its prior share price. The stock rose sharply on the news, reflecting investor confidence in the strategic rationale, expected synergies, and Cantaloupe’s strong recent financial performance. With the deal now in place, the Fund is exiting the position.
NICE Information Service, a Korean provider of credit data and analytics, also delivered strong performance. The company benefited from rising demand for digital credit solutions and favourable momentum across Korea’s tech sector. Recent strategic acquisitions further supported its growth outlook, reinforcing investor confidence in its scalable business model.
The Fund initiated four new positions during the month. Nextracker, a global leader in solar tracking systems, offers exposure to the accelerating transition toward renewable energy. Attoss, a workforce management software provider, supports labour efficiency and compliance across key sectors. Shift, a Japanese software testing company, plays a critical role in improving digital reliability across industries. Mony Group, a UK-based financial services platform, enables consumer decision-making through trusted comparison tools and data-driven engagement. All four businesses align with the Fund’s focus on scalable models, recurring revenues, and structural growth drivers.
The Fund remains focused on investing in high-quality businesses with structural growth tailwinds, scalable models, and disciplined capital allocation, while actively managing portfolio risks amid an evolving macroeconomic backdrop.