William_Potter/iStock via Getty Images Sixth Street Specialty Lending ( TSLX ) is the externally managed middle-market BDC managed via the Sixth Street platform. Out of the roughly two dozen BDCs I own, TSLX stands out as “best in breed” in terms of management quality and historic performance even among other well-managed BDCs, as we can see from the charts below. The sell-off in the BDC sector hi...
William_Potter/iStock via Getty Images Sixth Street Specialty Lending ( TSLX ) is the externally managed middle-market BDC managed via the Sixth Street platform. Out of the roughly two dozen BDCs I own, TSLX stands out as “best in breed” in terms of management quality and historic performance even among other well-managed BDCs, as we can see from the charts below. The sell-off in the BDC sector hit TSLX as well, with the stock declining from around $24 to almost $16 at the recent lows. Total returns (TSLX Investor Presentation) The company reported Q1 results that looked ugly on the surface: a $0.27 net loss per share, a net asset value of $16.24 vs. $16.98 previously, and a decrease in the regular dividend from $0.46 to $0.42 per quarter. Has TSLX lost its way? Management doesn’t seem to think so. During February and March of 2026, several insiders spent six and seven figures on buying the stock . Insiders can have many reasons to sell a stock, but when they buy their stock, it’s usually because they think it’s a good opportunity. The depressed price coupled with massive insider buys warrants a closer look. Their portfolio consists of 107 borrowers, 89% first lien and 96.3% floating-rate, with meaningful exposure to software and business-services companies with median EBITDA of around $53 million. Meaningful exposure to software borrowers is obviously not helpful in an environment where investors are afraid AI will lead to mass bankruptcies in the sector, and it explains the severity of the decline in the share price. Portfolio diversification (TSLX) Key metrics Metric (as of Q1 2026, period ended 3/31/26) Value Net asset value (NAV) per share $16.24 Price / NAV ~1.06x Forward base dividend (annualized) $1.68 Forward base yield (on price) ~9.9% Adjusted NII per share (Q1 2026) $0.42 Base dividend coverage (adj. NII) ~1.0x Debt / Equity (Q1 2026) 1.18x Non-accruals (% of fair value) 1.4% First-lien debt (% of portfolio) 89% Floating-rate debt (% of portfolio) 96.3% ...
bunhill/E+ via Getty Images The following segment was excerpted from Fundsmith Equity Fund 2026 Semi-Annual Letter To Shareholders. Purchases Industrials: GE Vernova ( GEV ) – GE Vernova builds and services the gas turbines and electrical grid equipment that power the modern world. Its competitive ‘moat’ stems from the scale and high switching costs of energy infrastructure: once its turbines are ...
bunhill/E+ via Getty Images The following segment was excerpted from Fundsmith Equity Fund 2026 Semi-Annual Letter To Shareholders. Purchases Industrials: GE Vernova ( GEV ) – GE Vernova builds and services the gas turbines and electrical grid equipment that power the modern world. Its competitive ‘moat’ stems from the scale and high switching costs of energy infrastructure: once its turbines are installed, customers are locked into high-margin, inflation-protected service contracts for decades. Unlike elevators and escalators, these generators cannot be serviced by independent providers because all the technology and materials are proprietary. GE Vernova's equipment generates approximately a third of the world's total electricity. Future growth depends on upgrading ageing power grids to handle the high voltages needed to deliver power from where it is produced to where it is needed, and on increasingly ‘behind-the-meter’ power generation at AI data centres. That growth is also fairly predictable as the current order backlog is $163bn (4x 2025 revenues). They are also the global leader in small modular nuclear reactors (SMRs). They currently have the only commercial SMR project (BWRX-300) under construction in the Western world, with the first deployment in Canada expected to be finished by 2030. ROIC: ~20% but rising rapidly, FCF yield: 2.6%. Legrand ( LGRDY ) – Legrand is a French manufacturer of the physical infrastructure behind electrical and digital building systems. Its competitive advantage relies on an entrenched distribution network and deep brand loyalty among electricians who refuse to risk their reputation on unfamiliar components. It makes mundane things in buildings, from fire escape signs to electrical sockets to the busways that carry cables in data centres. Legrand holds a nearly 20% global market share in wiring devices, meaning roughly 1 in 5 electrical switches and sockets globally are made by it. Growth opportunities lie in the rising demand fo...
FabrikaCr Asian equity markets traded mixed on Thursday, caught between macro anxiety over escalating Middle East tensions and a sharp rebound in technology shares. While the overnight mixed session on Wall Street was weighed down by fears that renewed conflict and successive U.S. military strikes in Iran would stoke global inflation. U.S. equity futures stabilized in Asian hours—with Nasdaq 100 f...
FabrikaCr Asian equity markets traded mixed on Thursday, caught between macro anxiety over escalating Middle East tensions and a sharp rebound in technology shares. While the overnight mixed session on Wall Street was weighed down by fears that renewed conflict and successive U.S. military strikes in Iran would stoke global inflation. U.S. equity futures stabilized in Asian hours—with Nasdaq 100 futures leading a modest 0.22% bounce. In commodities, crude oil advanced for a third consecutive session to trade above $74 per barrel, while gold hovered below $4,100 an ounce. The benchmark KOSPI rose more than 2% to around 7,420, spearheaded by a 7% jump in SK hynix following reports that its U.K./U.S. ADR offering was oversubscribed sevenfold. This sharp semiconductor rebound effectively overshadowed the lingering fallout from Samsung Electronics’ recent earnings disappointment. Japan's ( NKY:IND ) rose 1.09% to above 68,000, while the broader Topix Index gained 0.4% to 4,022, with the Japanese yen trading around 162.5 per dollar. China's ( SHCOMP ) fell 0.03% to 3,978, while the Shenzhen Component gained 0.5% to 15,020. The offshore yuan rose to around 6.79 per dollar, snapping a three-session losing streak. . Meanwhile, data showed China's annual inflation rate eased to 1.0% in June from 1.2% in May, while producer prices increased 4.1% Hong Kong ( HSI ) fell 1.36% to 24,302, pausing after a recent rally, though AI sentiment remained supported by Zhipu AI’s HK$4 billion share sale launch and Luxshare Precision's upcoming debut. India ( SENSEX ) rose 0.84% to 77,051 at the open, recovering some ground after posting its sharpest single-session decline in three months a day earlier. The Indian rupee hovered around 95.5 per dollar, pausing losses as traders pointed to likely intervention by the Reserve Bank of India through dollar sales to temper volatility. Australia ( AS51 ) shares fell 0.51% to 8,711 in early deals, sliding for the fourth straight session. Currencies: ...
(RTTNews) - European stocks are likely to open higher on Thursday after U.S. President Donald Trump said the recent armed clashes would not lead to the end of the ceasefire with Iran or the resumption of full-scale war.
(RTTNews) - European stocks are likely to open higher on Thursday after U.S. President Donald Trump said the recent armed clashes would not lead to the end of the ceasefire with Iran or the resumption of full-scale war.
The United States launched new airstrikes against Iran early Thursday, and Tehran responded by targeting Bahrain, Kuwait and Qatar in crossfire that again threatened an interim deal intended to help end the war. (Image credit: Khalil Hamra)
The United States launched new airstrikes against Iran early Thursday, and Tehran responded by targeting Bahrain, Kuwait and Qatar in crossfire that again threatened an interim deal intended to help end the war. (Image credit: Khalil Hamra)
Restu Ariyadi/iStock Editorial via Getty Images I'm maintaining a constructive view of KB Financial Group Inc. ( KB ) (105560.KS). I considered its aggressive pivot into non-core business areas and a good chance of an upcoming payout hike. My previous April 24, 2026, update was focused on KB's above-consensus 1Q26 performance and its ROE enhancement enablers. Targeting a Symmetric Earnings Profile...
Restu Ariyadi/iStock Editorial via Getty Images I'm maintaining a constructive view of KB Financial Group Inc. ( KB ) (105560.KS). I considered its aggressive pivot into non-core business areas and a good chance of an upcoming payout hike. My previous April 24, 2026, update was focused on KB's above-consensus 1Q26 performance and its ROE enhancement enablers. Targeting a Symmetric Earnings Profile The firm's share of bottom-line derived from non-credit operations went up 6ppts from 37% in FY2025 to 43% during Jan-Mar '26. KB took part in the "2026 Korea Conference" organized by BofA ( BAC ) last month. As per BAC's Jun 16 proprietary report titled "Day 1 Takeaways," management aims to raise "non-banking earnings contribution further towards a 50:50 mix." I judge its corporate reorientation to be value accretive. The 1Q2026 ROEs for KB's brokerage and insurance arms were 19.2% and 14.1%, respectively, according to its results slides . The group's core banking unit registered a modest 11.5% on the same metric over this period. Also, fees accounted for 82% of its latest quarterly non-interest income. I believe that investors would like to have a rising proportion of stable and recurring profits in the future. From my perspective, the enterprise's overall financial returns should get better going forward as its higher-yield non-bank businesses expand. At the earlier analyst meeting in late April, KB's CFO drew attention to "a paid-in capital increase of KRW 700 billion [for the securities unit]." This move will lift the broker division's margin lending headroom, which is constrained by Korean regulators based on the size of its equity base. The "iShares MSCI South Korea ETF" ( EWY ) is up 88% in 2026 thus far. I think the company's brokerage-related operations are well-placed to capitalize on the local market boom with an enlarged financing capacity. I'm also encouraged by KB's digital-first approach. The online penetration rate for its securities segment has already re...