Pawel Kacperek/iStock via Getty Images Fund Snapshot Alger AI Enablers & Adopters ETF Ticker ALAI Inception Date 4/4/24 Net Asset Value $36.20 Closing Price $36.11 Expense Ratio (Gross) 1.68% Expense Ratio (Net) 0.55% Fee Waiver (1.13%) Total Fund Assets $293.7 mm Exchange NYSE Arca Shares Outstanding 8,062,500 Click to enlarge Investment Strategy Primarily invests in equity securities of companie...
Pawel Kacperek/iStock via Getty Images Fund Snapshot Alger AI Enablers & Adopters ETF Ticker ALAI Inception Date 4/4/24 Net Asset Value $36.20 Closing Price $36.11 Expense Ratio (Gross) 1.68% Expense Ratio (Net) 0.55% Fee Waiver (1.13%) Total Fund Assets $293.7 mm Exchange NYSE Arca Shares Outstanding 8,062,500 Click to enlarge Investment Strategy Primarily invests in equity securities of companies focusing on the development, adoption, or utilization of artificial intelligence (AI) technologies identified through our fundamental research as demonstrating promising growth potential. Seeks long-term capital appreciation. Portfolio Management Patrick Kelly, CFA Executive Vice President Portfolio Manager, Head of Alger Capital Appreciation and Spectra Strategies 28 Years Investment Experience Click to enlarge Benchmark S&P 500 Index Click to enlarge Market Environment U.S. equities ended the fourth quarter on a firm footing, with the S&P 500 Index returning 2.7%, extending the steady grind upward that characterized 2025, after the tariff announcements. Investor confidence was supported by a familiar trio: corporate earnings that came in better than expected, a Federal Reserve (Fed) that pushed further into an easing stance, and a macroeconomic backdrop that — despite mounting cross- currents — remained resilient in the aggregate. Market sentiment also benefited from improving clarity on trade policy, including an extension of the U.S. – China truce and selective tariff relief aimed at easing consumer affordability pressures. At the same time, the quarter was defined by widening dispersion beneath the index-level surface. The market’s biggest tailwind — continued investment tied to artificial intelligence (AI) — was increasingly accompanied by scrutiny around AI infrastructure bottlenecks, sources of financing, and whether the AI theme could deliver returns commensurate with the capital deployed. Macroeconomic risks also remained in play: labor market softening became h...
denphumi/iStock via Getty Images Executive Summary Thrivent Mid Cap Stock Fund outperformed the Russell Mid Cap Index during the fourth quarter and underperformed during the 12 months ending December 31, 2025. Many sectors contributed to the outperformance during the fourth quarter. A few promising factors point to an improving backdrop for mid-cap stocks. Performance factors Thrivent Mid Cap Stoc...
denphumi/iStock via Getty Images Executive Summary Thrivent Mid Cap Stock Fund outperformed the Russell Mid Cap Index during the fourth quarter and underperformed during the 12 months ending December 31, 2025. Many sectors contributed to the outperformance during the fourth quarter. A few promising factors point to an improving backdrop for mid-cap stocks. Performance factors Thrivent Mid Cap Stock Fund ended 2025 on a better note as the fund outperformed the Russell Mid Cap Index during the fourth quarter. While many sectors contributed to the outperformance, the Materials, Real Estate, Energy, and Industrials sectors provided the most significant relative outperformance. The Information Technology and Consumer Discretionary sectors offset some of this outperformance as they were the only two relative underperforming sectors during the quarter. Albemarle ( ALB ) and Steel Dynamics ( STLD ) led the materials sector's relative performance. Albemarle benefited from decreasing industry supply and increasing storage demand. High-cost lithium producers finally started shutting down production at the same time battery demand for energy storage increased. This combination increased lithium prices and powered Albemarle's stock. Rising steel prices throughout the fourth quarter buoyed Steel Dynamics's returns. First Industrial Realty ( FR ) experienced improving warehouse demand as customers received more clarity regarding the tariff environment. This uptick in demand comes at a time when new supply starts are slowing down creating a favorable backdrop for higher occupancy and rent rates. First Industrial's positive return combined with avoiding many of the negative real estate investment trust ('REIT') returns drove the real estate sector's outperformance. Concentrating on the Exploration and Production industry within the Energy sector strengthened relative performance as most of the Energy industry's returns declined during the quarter. Within the Industrials sector, Sout...
vovashevchuk/iStock via Getty Images In this article, we will focus on the recently announced and upcoming listing of debt instruments on the stock exchange: 7.25% bonds ( RWAYI ) of Runway Growth Finance Corp. ( RWAY ) due 2031. As always, we will start with some details for the company, and then we will introduce you to the new issue. Company Details RWAY's portfolio ( Runway Growth ) Runway Gro...
vovashevchuk/iStock via Getty Images In this article, we will focus on the recently announced and upcoming listing of debt instruments on the stock exchange: 7.25% bonds ( RWAYI ) of Runway Growth Finance Corp. ( RWAY ) due 2031. As always, we will start with some details for the company, and then we will introduce you to the new issue. Company Details RWAY's portfolio ( Runway Growth ) Runway Growth Finance Corp. has close to $963 million at the end of its third quarter for 2025. The current market capitalization of the company is close to $320.87 million. The total debt is around $443.5 million. The 3-year return on NAV of the company is close to 10%. RWAY has close to 46% total leverage, an expense ratio of 16.55%, and a gross-asset non-leverage expense ratio of around 4.31%. Its 1-year z-score is a negative 1.43. The average discount for the last 5 years is close to 15.4%, while currently the common stock is traded at around 32% discount. RWAY basic information ( CEFData.com ) Strengths and Weaknesses of RWAY As we mentioned above, the leverage is close to 46%, so the asset coverage ratio of RWAY is approximately 201.8%, and the asset coverage ratio cushion is close to 35%, which is a decent buffer for the regulatory restrictions. The non-accrual loans of the company are only 1.15%, indicating a relatively healthy loan portfolio. Close to 89% of RWAY’s investments are secured by senior assets, while secured debt represents approximately 25% of total assets. If we used Moody's approach to rate the RWAY, it would look like this: credit ratings (author's database) We looked more deeply into RWAY, but we are here for the new issue, so let's see. The New Issue RWAY issued 4 million notes from RWAYI, each with a par value of $25, or $100 million gross proceeds. The baby bond will have a 7.25% coupon rate, paid in quarterly distributions of $0.453, or close to $1.81 annual amount. The distribution will start on 03/01/2026. The bond has close to 5 years to maturity with...
Japan’s super-long bond yields climbed as shorter-term rates fell, in what is known as a twist-steepening of the yield curve, as investors mull the outlook for fiscal policy and the Bank of Japan’s rate-hike path. The 30-year bond yield rose about five basis points, and the 40-year rate jumped seven basis points. Shorter maturities were bought as data Monday showed Japan’s economic output in the f...
Japan’s super-long bond yields climbed as shorter-term rates fell, in what is known as a twist-steepening of the yield curve, as investors mull the outlook for fiscal policy and the Bank of Japan’s rate-hike path. The 30-year bond yield rose about five basis points, and the 40-year rate jumped seven basis points. Shorter maturities were bought as data Monday showed Japan’s economic output in the fourth quarter of 2025 was much weaker than expected, prompting investors to slightly pare back bets on BOJ rate hikes. Read: Japan’s Economy Ekes Out Anemic Growth as Takaichi Eyes Spending The moves come after Prime Minister Sanae Takaichi’s decisive election victory led investors to scoop up Japanese bonds last week on bets that policy direction would become clearer and the likelihood of aggressive fiscal expansion receded. Today’s selling in super long bonds emerged as clarity is awaited on how Takaichi will fund the plans and avoid another debt market meltdown . Read: Japan Investors Stay Wary Takaichi Will Spur Another Bond Crash “GDP came in weaker than expected, prompting buying in the medium-term sector on the view that the Bank of Japan’s rate hikes will be delayed,” said Miki Den , a senior rates strategist at SMBC Nikko Securities Inc. Regarding the selloff in super-long bonds, “there is renewed awareness of the risk that a consumption tax cut could be implemented.” Overnight index swaps show about a 69% chance of a rate hike by the BOJ by April, compared with about 73% on Friday. One of the central bank’s most hawkish members indicated last week that conditions for the next hike could be in place by spring.
hapabapa/iStock Editorial via Getty Images For most Chinese NEV makers, 2026 began with a stock rally on potential and actual easing of trade restrictions abroad (plus some policy support ). Li Auto ( LI )( LAAOF ), however, underwhelmed and stood out for the wrong reason, claiming the dubious title of last year's second-most profitable short in Asia Pacific . With deliveries down year-on-year for...
hapabapa/iStock Editorial via Getty Images For most Chinese NEV makers, 2026 began with a stock rally on potential and actual easing of trade restrictions abroad (plus some policy support ). Li Auto ( LI )( LAAOF ), however, underwhelmed and stood out for the wrong reason, claiming the dubious title of last year's second-most profitable short in Asia Pacific . With deliveries down year-on-year for the eighth straight month, Wall Street sentiment is cooling. And I can't disagree; Li Auto is looking increasingly unappealing. Li Auto's dethroning Li Auto had been the model startup - carving out its own lane in a crowded market by betting on extended range EVs (EREVs) and positioning itself as a premium family brand. It worked like a charm: revenue climbed steadily, and high selling prices supported margins. Its vehicle margin, over 20% in Q3 2024, was among the best in the industry. Data by YCharts In 2024 growth slowed, then came 2025. For the full year, Li Auto delivered 406,343 vehicles , down 19%, which was just about half of the original target. Falling ASP and rising costs have squeezed margins further. Vehicle margin dropped to 15% in Q3 2025 . Share price is down more than 20% over the past year. I see few reasons for what went wrong. Strategy aspect Strategy is a big one. Even as demand kept moving toward pure BEVs and advanced PHEVs , Li Auto stuck to EREVs. Warning signs of early 2024 the L-series began losing steam and delivery guidance was cut - were either missed or ignored. Instead of pivoting then, the company stayed the course: EREVs still accounted for 97.8% of total deliveries in 2025. Its first BEVs arrived only in September 2025 - almost 18 months after those first cracks. By then, the pivot was already behind schedule, plus production capacity for the new i-series lagged at the very time it was needed most. To make things worse, those BEV models underwhelmed, and Li Mega even had to be recalled , which cut 4.3 percentage points off gross margin in...
J Studios/DigitalVision via Getty Images Teradata ( TDC ) is a cloud database and analytics company currently undergoing legacy transformation that I have been following for some time. I first covered the stock in March last year , when I rated the stock neutral in the midst of the cloud transformation, resulting in a challenge in properly valuing the stock, though I also included a caveat that th...
J Studios/DigitalVision via Getty Images Teradata ( TDC ) is a cloud database and analytics company currently undergoing legacy transformation that I have been following for some time. I first covered the stock in March last year , when I rated the stock neutral in the midst of the cloud transformation, resulting in a challenge in properly valuing the stock, though I also included a caveat that the stock could possibly trend upwards on positive progress. With the stock trading around $33.5 per share today, up by over 47% since my coverage, TDC indeed seems to be gaining momentum. A lot of that has been seen just over the past year alone, with the stock up 35% from a 1-year standpoint. YTD, the stock is also up 13%. I upgraded the stock to buy. My 1-year price target analysis suggests that TDC could reach an 11.5% share price upside within the next twelve months. I believe that the recent agentic AI-focused product launch could drive usage and, effectively, revenue growth into FY 2026, unlocking a market conviction that TDC remains a cloud-first AI data platform despite being in the midst of legacy transformation. Financial Reviews As of Q4, fundamentals have been improving, driven by TDC’s overall successful shift toward high-margin cloud ARR (annual recurring revenue). Company Presentation In Q4, TDC delivered a revenue of $421 million, a 3% YoY growth. Though full FY 2025 revenue of $1.663 billion still represented a -5% YoY decline, the Q4 performance suggests that TDC is starting to see more steady growth instead of the overall decline seen in the earlier stage of its cloud transition. Company Presentation Furthermore, the share of cloud ARR in the total ARR also continued to grow in Q4, with cloud ARR now almost making up half of the total ARR, suggesting a better outlook with minimized legacy drag. Company Presentation Profitability also seemed better in Q4 across the board, with gross margin expanding to 62% from 61% last year, likely driven by the 15% growth...