Dixon Mitchell Investment Counsel Buys the Dip: Adds $23 Million of Descartes Systems
Key Points
Dixon Mitchell added 255,154 shares, raising the position’s value by $23.42 million.
The transaction represented a 0.93% increase relative to reportable AUM.
Post-trade holding: 339,370 shares valued at $31.96 million.
The position now accounts for 1.14% of fund AUM.
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On Nov. 13, 2025, Dixon Mitchell Investment Counsel Inc. disclosed a buy of 255,154 shares in The Descartes Systems Group (NASDAQ:DSGX), increasing its stake by an estimated $23.42 million.
What happened
According to a filing with the Securities and Exchange Commission dated Nov. 13, 2025, Dixon Mitchell Investment Counsel increased its holdings in Descartes Systems during the third quarter.
The fund acquired 255,154 additional shares, bringing its total position to 339,370 shares, worth approximately $31.96 million as of Sept. 30, 2025.
The firm reported 75 total positions in the filing.
What else to know
Dixon Mitchell bought more shares, and the Descartes stake now represents 1.1% of 13F reportable AUM.
Top holdings after the filing:
- iShares Core MSCI EAFE ETF (NYSEMKT:IEFA): $248,057,227 (8.8% of AUM)
- Microsoft (NASDAQ:MSFT): $147,681,530 (5.3% of AUM)
- Alphabet (NASDAQ:GOOGL): $134,148,500 (4.8% of AUM)
- Toronto-Dominion Bank (NYSE:TD): $132,087,137 (4.7% of AUM)
- Royal Bank of Canada (NYSE:RY): $131,264,269 (4.7% of AUM)
As of Dec. 9, 2025, shares were priced at $91.79, down 26% from one year earlier, underperforming the S&P 500 by 46 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close December 9, 2025) | $91.79 |
| Market capitalization | $7.89 billion |
| Revenue (TTM) | $703.71 million |
| Net income (TTM) | $155.53 million |
Company snapshot
The Descartes Systems Group:
- Provides cloud-based logistics and supply chain management solutions, including routing, transportation management, customs compliance, and e-commerce warehouse management.
- Operates a modular, software-as-a-service (SaaS) business model for its logistics technology platform and related services.
- Serves transportation providers, logistics service providers, manufacturers, retailers, distributors, and other distribution-intensive enterprises globally.
Descartes is a leading provider of SaaS-based logistics and supply chain management solutions, leveraging a modular technology platform to streamline complex logistics operations.
The company focuses on enhancing operational efficiency and regulatory compliance for logistics-intensive businesses worldwide.
Its scale, recurring revenue model, and comprehensive suite of interoperable applications provide a competitive edge in the global logistics technology market.
Foolish take
The Descartes Systems Group is down 24% over the last year, and it seems Dixon Mitchell views the stock as a buy-the-dip opportunity.
I can't help but agree, either. Descartes Systems is quickly becoming one of my most intriguing watch list stocks thanks to its leadership position and total returns that have roughly doubled the S&P 500 since 2010.
Whether it's a retailer shipping goods to customers, parcel delivery companies, airlines, freight brokers, or ocean tankers, Descartes' suite of logistics and supply chain solutions is quickly becoming a must-have.
The stock has grown sales by 14% annually over the last decade and generates most of its revenue from recurring purchases, resulting in typically steady growth.
However, Descartes was priced for perfection after its stock soared to 50 times free cash flow (FCF), which helped spur this year's decline, as it could not live up to its hard-to-meet standards.
Ultimately, nothing is wrong with the business, and things look as good as ever with sales and net income up 11% and 20% in the last quarter.
As we shift to a more omnichannel world, Descartes stands to benefit over the long haul. Now trading at a more reasonable 34 times FCF, Descartes looks like a top-tier compounder available at a fair valuation.
Glossary
AUM (Assets Under Management): The total market value of assets that an investment firm manages on behalf of clients.
13F reportable AUM: The portion of a fund's assets required to be disclosed in quarterly SEC Form 13F filings.
Buy (in institutional context): The purchase of additional shares by a fund or institutional investor to increase its position in a company.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or shareholding a fund or investor has in a company.
Modular (business model): A system design where components can be independently created, modified, or replaced without affecting the whole.
Software-as-a-Service (SaaS): A software delivery model where applications are accessed online via subscription rather than installed locally.
Logistics technology platform: A digital system that manages and optimizes the movement and storage of goods across supply chains.
Routing: The process of determining the most efficient paths for transporting goods from origin to destination.
Customs compliance: Adhering to government regulations and procedures for importing and exporting goods.
Distribution-intensive enterprises: Businesses that rely heavily on the movement and delivery of large volumes of goods.
TTM: The 12 months ending with the most recent quarterly report.
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