Kernow Up 8% In 2026; Highlights This Dominant Company “From Billboard To Tollbooth”

Kernow Asset Management’s commentary for the month ended February 28, 2026.

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In February, the strategy returned 1.1% as our shorts worked perfectly. For everyone else.

We came into this stretch short AI and negative on Tech. This was meant to be our moment. And yet during the ‘SaaSpocalypse’, our shorts barely contributed. Instead, the pain landed on high-quality businesses. The junky operators we wager against walked away mostly intact. The market has a humbling sense of humour.

SaaSpocalypse Now

The AI revolution has produced many optimistic PowerPoint slides and a remarkable shortage of actual productivity. Frankly, by now you might expect at least one UK-listed company to announce a genuine upgrade cycle driven by glorious AI efficiency.

Hello Borg. Resistance is futile. Cash would be lovely.

The Monopoly We Mocked… And Then Bought

When Autotrader came to market in 2015, we shook our heads. Surely the regulator would notice the monopoly. We also chuckled as new competition entered with innovative, well-funded models that looked set to grab market share.

Management taught us a lesson. This is a formidable, well-run business. It is valued as such. Or it was. People say it is a car classifieds business with steady pricing power. And, oh boy, what power. Over the past 20 years, the inflation-adjusted price of a used car has barely moved. Over the same stretch, Autotrader has driven prices up by roughly 7% per year. We challenge you to send us the name of the only other UK-listed business that has increased prices more consistently over the same period.