Can we rely on Reliance?

Robert Frost

OC Funds Management

Following share price weakness ahead of its full-year result, we added Reliance Worldwide Corporation to our portfolio. Reliance is a global plumbing supplies business specialising in reliable and premium branded water flow and control products including the market-leading 'SharkBite' push-to-connect fittings.

We consider Reliance to be a high-quality global growth business with a structural growth opportunity given the push-to-connect category, from which it derives much of its revenue, is a relatively immature and high-growth category in the overall plumbing fittings market.

The company subsequently released a strong set of FY17 results, with revenue, EBITDA and NPAT all exceeding prospectus and consensus forecasts.

After a strong re-rating, the Chairman and major shareholder, Jonathan Munz, reduced his shareholding from 30% to 10% in an underwritten sell-down process that took some of the gloss off the stock’s re-rating.

Nevertheless, Reliance continues to trade +10% on our entry price and we remain confident the ongoing roll-out of SharkBite to Lowe’s in the US will help underpin strong near-term earnings growth and that the well-established and diversified business will be a long-term investment for our portfolio.


Robert Frost
Head of Investments
OC Funds Management

Robert was appointed Head of Investments in 2009 and has been a Portfolio Manager since joining OC Funds Management in 2001. Robert is also an Executive Director of parent company, Copia Investment Partners.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.