YCG Increases Fair Isaac Stake by 4,992 Shares in Q2 2025

YCG, LLC increased its Fair Isaac stake by 4,992 shares in Q2 2025, valued at $9.37 million. Fair Isaac now accounts for 3.2% of the fund's $1.29 billion in reportable assets. Top holdings include Microsoft, Mastercard, Moody's, Amazon, and MSCI. Fair Isaac shares have underperformed the S&P 500 by 32.4 percentage points over the past year and trade at a forward P/E of 39.9.

YCG, LLC, an independently registered investment adviser, has significantly increased its position in Fair Isaac (NYSE: FICO) during the second quarter of 2025. According to a filing with the U.S. Securities and Exchange Commission (SEC), YCG bought an additional 4,992 shares of Fair Isaac, valued at approximately $9.37 million [1]. This transaction brought the total Fair Isaac stake to 31,108 shares, representing 3.2% of the fund’s $1.29 billion in reportable assets as of June 30, 2025 [1].

Fair Isaac, a leading provider of decision management software and analytics, has faced challenges in recent times. Its stock has underperformed the S&P 500 by 32.4 percentage points over the past year, with shares trading at a forward P/E of 39.9 and a trailing 12-month EV/EBITDA of 40.4 [1]. The company's five-year revenue CAGR stands at 8.16%, and its stock is currently 40.4% below its 52-week high [1].

Top holdings in YCG’s portfolio as of June 30, 2025, include Microsoft, Mastercard, Moody's, Amazon, and MSCI, with Microsoft holding the largest share at $107.99 million, representing 8.3% of the fund’s assets under management (AUM) [1]. Despite the recent underperformance of Fair Isaac shares, YCG's investment in the company underscores its belief in the potential of Fair Isaac's broader offerings beyond its FICO credit scoring algorithm.

Fair Isaac's strategic focus on expanding its decision management, analytics, and identity and fraud detection capabilities could help it mitigate potential losses due to the adoption of new credit scoring models like VantageScore [1]. However, the company faces significant challenges, including a substantial debt burden and potential pricing pressures from new competitors.

In summary, YCG's increased stake in Fair Isaac highlights the fund's belief in the company's long-term potential. However, the stock's recent performance and the broader market conditions suggest that investors should closely monitor Fair Isaac's ability to adapt and innovate in the face of evolving competitive pressures.

References:
[1] https://www.nasdaq.com/articles/ycg-loads-nearly-5000-fair-isaac-shares-q2-2025