Fund Manager Sees Value in TFI International: $7M Share Purchase Signals Conviction at Discounted Levels

Dixon Mitchell Investment Counsel has made a strategic move in the transportation and logistics sector, acquiring 93,705 additional shares of TFI International Inc. (NYSE:TFII) as of November 13, 2025. This transaction, valued at approximately $7 million, reflects the fund manager’s confidence in the company despite recent market headwinds. The purchase expanded Dixon Mitchell’s total position to 912,039 shares, representing an $80.72 million stake that now comprises 2.87% of the fund’s total assets under management.

Why This Matters for Investors

The timing of this acquisition is particularly significant. TFI International’s stock has experienced considerable volatility, trading down roughly 35% over the past twelve months and sitting approximately 36% below its 52-week high. As of December 10, 2025, shares were valued at $99.17. This move demonstrates that institutional investors with deep research capabilities are identifying opportunities in names others may be overlooking.

Dixon Mitchell has maintained its position in TFI since 2020, but notably doubled its share count since late 2024—a period that coincided with the stock’s sharp decline. This pattern of “averaging down” suggests the fund manager views the current valuation as attractive rather than being deterred by recent weakness.

TFI International: A Glimpse at the Business

TFI International Inc. operates as a comprehensive transportation and logistics provider across North America, with revenue of $8.06 billion (trailing-twelve-month basis) and net income of $323.46 million. The company’s business model spans multiple segments:

• Package and courier services
• Less-than-truckload (LTL) freight operations
• Full truckload (TL) services
• Asset-light logistics and brokerage solutions

The company serves customers ranging from small regional businesses to Fortune 500 enterprises throughout the United States, Canada, and Mexico. Its diversified approach—combining asset-based operations with independent contractor networks—provides operational flexibility and scalability.

Investment Profile and Valuation Context

At current price levels, TFI trades at 26 times earnings and 12 times free cash flow, positioning it at a meaningful discount relative to broader market multiples. The company offers a 1.81% dividend yield, providing current income alongside potential capital appreciation.

What stands out in TFI’s track record is its disciplined capital allocation. Over the past five years, the company has generated an average cash return on invested capital (ROIC) of 14%—a figure that underscores operational efficiency. More broadly, TFI has executed a successful serial acquisition strategy since 2003, with the stock delivering approximately 39x returns over that two-decade span.

Portfolio Context

TFI ranks among Dixon Mitchell’s core holdings following this transaction. The fund’s largest positions include:

• iShares Core MSCI EAFE ETF (NYSEMKT:IEFA): $248.06 million (8.8% of AUM)
• Microsoft (NASDAQ:MSFT): $147.68 million (5.3% of AUM)
• Alphabet (NASDAQ:GOOGL): $134.15 million (4.8% of AUM)
• Toronto-Dominion Bank (NYSE:TD): $132.09 million (4.7% of AUM)
• Royal Bank of Canada (NYSE:RY): $131.26 million (4.7% of AUM)

The Investment Case

The rationale behind this purchase appears multi-layered. First, the fund manager has a five-year operating history with TFI, providing institutional knowledge that reduces research risk. Second, the company’s 14% average ROIC and consistent 14% annual sales growth demonstrate that management can execute at scale. Third, historical returns—nearly 40x since 2003—suggest the business model is fundamentally sound even accounting for recent weakness.

TFI’s ability to profitably acquire and integrate smaller logistics and transportation operations into its existing network represents a sustainable competitive advantage. If management continues executing its tuck-in acquisition strategy while market conditions remain challenging for smaller competitors, TFI could emerge as an even stronger consolidated platform.

At valuations not seen since 2020, this transaction by an experienced institutional manager purchasing at current discount levels signals that patient capital sees this as an attractive entry point for long-term wealth accumulation in the transportation sector.