Why does Burke Wealth Management favor Amphenol alongside Eaton?

The letter said Amphenol's data center power business essentially picks up where Eaton's leaves off, and praised Amphenol's decentralized operating structure and history of accretive bolt-on acquisitions, which it likened to TransDigm.

How have Eaton shares performed recently?

Eaton's one-month return was -13.28%, and its shares traded between $311.92 and $478.00 over the last 52 weeks. On October 23, 2026, the stock closed at approximately $366.11 per share.

Top Companies' AI MovesTop Companies AI2m agoOct 27, 2026, 06:30 JST

Burke: Amphenol power picks up where Eaton leaves off

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3 Key Points

What happened
Burke Wealth Management's Q3 2026 investor letter said Amphenol's data center power business essentially picks up where Eaton Corporation plc (NYSE:ETN)'s leaves off, praising Amphenol's decentralized operating structure and bolt-on acquisition record.
Why it matters
The letter frames Amphenol as a complementary holding whose data center power focus follows Eaton's, with a deal-making style Burke likens to TransDigm.

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Context & Analysis

Burke Wealth Management's Q3 2026 investor letter positioned Amphenol as a natural complement to Eaton within its Focused Growth Strategy. The fund's core argument is that Amphenol's data center power business essentially picks up where Eaton's leaves off, suggesting the two companies address adjacent parts of the same AI infrastructure buildout rather than competing head-on.

The letter also pointed to Amphenol's decentralized operating structure and its history of making accretive bolt-on acquisitions, traits Burke compared to TransDigm. That comparison appears to be the basis for calling Amphenol a nice fit for the portfolio, framing it as a complement to Eaton rather than a substitute.

Separately, the letter noted that 68 hedge fund portfolios held Eaton at the end of the second quarter, down from 73 in the previous quarter, according to the firm's database. Burke also disclosed that Eaton is not on its list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026, while stating its own conviction lies in other AI stocks it believes hold greater promise for higher returns over a shorter time frame.

FAQ

Why does Burke Wealth Management favor Amphenol alongside Eaton?: The letter said Amphenol's data center power business essentially picks up where Eaton's leaves off, and praised Amphenol's decentralized operating structure and history of accretive bolt-on acquisitions, which it likened to TransDigm.
How have Eaton shares performed recently?: Eaton's one-month return was -13.28%, and its shares traded between $311.92 and $478.00 over the last 52 weeks. On October 23, 2026, the stock closed at approximately $366.11 per share.

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