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David Snowball On June 17, 2025, Rainwater Equity launched their first fund called, well, Rainwater Equity ETF. The actively managed ETF will pursue long-term capital appreciation by investing in a portfolio of “recurring revenue businesses led by exceptional management teams for the long run.” As an example, almost 10% of the fund is invested in the Canadian firm, Constellation Software, Inc. Constellation acquires and manages business software firms which tend to have a recurring revenue (monthly subscription) model and are “sticky” by nature (changing software, especially at the enterprise level, is hugely painful so companies try to avoid it). They believe such businesses offer more durable growth, fewer surprises, and greater long-term wealth creation potential.
Rainwater is led by, and the fund is managed by, Joseph R. Shaposhnik, former portfolio manager Continue reading →