It is a concern, but the issue has been discussed for a while and the valuation of the stock likely reflects at least some of the concern. But, we would also note the stock is up nearly $20 since the Trump victory. Stocks can still rise in the face of uncertainty, if business is otherwise good. HPS has some operations in India to address international markets. The tariffs may not be as bad as investors expect, or growth could simply be strong enough to handle them. HPS could also shift to focus on non-US customers. There are alternatives. At this point there is simply too many unknowns. Of course, uncertainty is usually not great for stock prices. Our strategy would be to monitor earnings and actual news (not threats) and manage position size to reflect risks. We would not exit a full position JUST on the fear of tariffs.
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