One of the first questions I had was, how did you choose to invest in one or the other share classes?

Analyst 1: For me, it was just a matter of trusting the Mendelsons and being content with the A shares, even though they don’t vote as much. When I bought them, they were significantly cheaper. To me, it didn’t make any sense to pay up for more voting rights.

Analyst 2: Voting rights is something that directed me to go towards the regulars, as opposed to A. We own both; more regular than A. As you may know, A got created as a result of a failed acquisition and they have never been able to go back to collapsing the two, primarily for tax reasons. That is the same reason why I don’t invest in any ADRs or GDRs; I want to be able to own the equity and own the voting rights.

So you own mainly the voting shares?

Analyst 2: Yes.

How much more expensive have they been, on average?

Analyst 2: The spread between common and A has been fairly steady, even today. What do you see as A?

Analyst 3: It’s roughly a 20% spread right now.

Analyst 2: Yes; it’s been fairly steady like that.

Analyst 3: Historically, the spread has been around 20%, 25% and then, during Covid, the spread collapsed and actually went negative. There was a really interesting arbitrage move where, essentially, sell all your As and buy all the traditional. Literally, by the end of the day, there was a 50% premium being reassigned to the As. From there, you could sell all of your voting stock and end up having a 15% larger position, less taxes, in your A. Historically, it was around 20%, 25%. Before Covid, it started collapsing closer to 10% and then it went negative and now it has re-expanded out.

The reason why it happened in Covid was, on that day, there was a fund that was blown out of position. The voting stock is more held by active managers. I have alerts set for the spread.

Analyst 2: Remind me again, does Greenhaven own HEICO, or not yet?