What smart money is saying about Watsco
3 funds in our archive have pitched Watsco — most recently KNA Capital Core Equity Strategy in September 2026.
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
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Position history
Between Q1 2025 and Q3 2026, 11 fund letters reported a position in Watsco — 3 opened or added to the position.
| Quarter | Letters | Bought | Sold | Theses |
|---|---|---|---|---|
| Q3 2026 | 5 | 2 | 0 | 2 |
| Q2 2026 | 1 | 0 | 0 | 0 |
| Q1 2026 | 2 | 1 | 0 | 0 |
| Q4 2025 | 0 | 0 | 0 | 1 |
| Q3 2025 | 1 | 0 | 0 | 0 |
| Q2 2025 | 1 | 0 | 0 | 0 |
| Q1 2025 | 1 | 0 | 0 | 0 |
Fund activity · 11 positions · 3 moves
- HoldsHamlin Capital Management Equity and High Yield Municipal Bond StrategiesSeptember 2026
“Cummins, Dick’s Sporting Goods, and Watsco were the largest detractors during the quarter, declining 33.08% on average.”
Watsco - September 2026
“AppLovin, Knife River and Watsco were among the detractors.”
Watsco - September 2026
“Industrials. Sometimes, opportunities can be found inside your existing portfolio—if you have the patience to find out. Case in point: Watsco (WSO) , the largest wholesale distributor of HVAC and refrigeration equipment in the U.S., which was the biggest detractor to our Fund’s performance in the quarter.”
Watsco - New positionKNA Capital Core Equity StrategySeptember 2026
“Watsco (WSO) Air conditioning is another thing that isn’t going anywhere. In just about every corner of North America, air conditioning is now a must-have due to the higher frequency of uncomfortably warm summer days. In this spirit, I made a sizeable initial investment in the HVAC (heating, ventilation, and air conditioning) distributor, Watsco.”
Watsco - September 2026
“Industrials decreased during the quarter. We exited Carrier Global (CARR), which was partially offset by additions to Watsco (WSO).”
Watsco - June 2026
“We continued to make changes to the portfolio during the quarter, but those changes were consistent with the same discipline that has guided the Fund over time. We initiated positions in Capital One Financial Corp (COF) and Spotify Technology SA (SPOT), where recent share price weakness created what we believe were attractive entry points into businesses with compelling long-term growth opportunities. We also exited First Citizens BancShares (FCNCA) following a period of strong execution and meaningful value creation. In addition, after initiating Watsco Inc (WSO) late in the first quarter, we exited Canadian National Railway Co (CNI) early in the second quarter in a move to reallocate capital toward what we believe is a more compelling long-term opportunity.”
Watsco - New positionFlexible Equity FundMarch 2026
“During the quarter, we added three new positions—NVIDIA Corporation (NVDA), SAP SE Sponsored ADR (SAP), and Watsco, Inc. (WSO)—while exiting T- Mobile (TMUS), Workday, Inc. (WDAY), and Uber Technologies (UBER)”
Watsco - March 2026
Listed in Giverny Capital Asset Management (GCAM) model portfolio’s reported holdings.
Watsco - September 2025
“Watsco, Inc. (WSO) was a detractor in the SMID Cap strategy in the third quarter.”
Watsco - HoldsSouthernsun Smid CapJune 2025
“Watsco, Inc. (WSO), the largest distributor of air conditioning, heating, and refrigeration products in North America, was the top detractor in the second quarter after being a top contributor last quarter.”
Watsco - March 2025
“Watsco, Inc. (WSO), the largest distributor of air conditioning, heating, and refrigeration products in North America, was a top contributor this quarter, posting record fourth-quarter results with sales up 9% and EPS up 15%.”
Watsco
Fund coverage · 3 theses
- KNA Capital Core Equity StrategySeptember 2026
Watsco is an HVAC distributor bought on a value opportunity, resilient replacement demand, no debt, and a long-term HVAC cycle supported by strong ownership culture.
Read the full thesis - Heartland Advisors Mid Cap Value FundSeptember 2026
Watsco is the largest U.S. HVAC and refrigeration distributor, with management-driven technology investments, acquisition growth, and margin expansion potential.
Read the full thesis - Giverny CapitalDecember 2025
Watsco is the largest HVAC distributor with technology advantages and secular replacement demand, poised to resume double-digit earnings growth after a standards-driven pause.
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