Fashion products photography/iStock via Getty Images Investment Process We seek to invest in high-quality, undervalued businesses that offer the potential for superior risk/reward outcomes. The investment universe is generally non-US equities with market caps below $5 billion. Undervaluation Determining the intrinsic value of a business is the heart of our research process. Intrinsic value represe...
Fashion products photography/iStock via Getty Images Investment Process We seek to invest in high-quality, undervalued businesses that offer the potential for superior risk/reward outcomes. The investment universe is generally non-US equities with market caps below $5 billion. Undervaluation Determining the intrinsic value of a business is the heart of our research process. Intrinsic value represents the amount that a buyer would pay to own a company's future cash flows. We seek to invest at a significant discount to our estimate of the intrinsic value of a business. Business Quality We seek to invest in companies with histories of generating strong free cash flow, improving returns on capital and strong competitive positions in their industries. Financial Strength We believe that investing in companies with strong balance sheets helps to reduce the potential for capital risk and provides company management the ability to build value when attractive opportunities are available. Shareholder-Oriented Management Our research process attempts to identify management teams with a history of building value for shareholders. Expense Ratios (% Gross/Net)* ARDBX ARHBX Annual Report 1.25/— 1.20/— Prospectus 1.46/1.42 1.40/1.36 Click to enlarge *Unsubsidized/subsidized. Annual Report: 30 Sep 2025. Prospectus: 30 Sep 2024. Net expenses reflect a contractual expense limitation agreement in effect through 31 Jan 2027. See prospectus for further details. Annual report figures: Excludes Acquired Fund Fees and Expenses as described in the prospectus. Past performance does not guarantee and is not a reliable indicator of future results. Investment returns and principal values will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. Call 800.344.1770 for current to most recent month-end performance. Performance may reflect agreements to limit a Fund's expenses, which would...
Earnings Call Insights: Alkermes plc (ALKS) Q4 2025 Management View CEO Richard F. Pops stated that "we expect to generate revenues of more than $1.7 billion and adjusted EBITDA of more than $370 million" in 2026, highlighting the completed acquisition of Avadel as a "milestone and strategic step in the company's transformation." Pops indicated the acquisition "adds an important new revenue stream...
Earnings Call Insights: Alkermes plc (ALKS) Q4 2025 Management View CEO Richard F. Pops stated that "we expect to generate revenues of more than $1.7 billion and adjusted EBITDA of more than $370 million" in 2026, highlighting the completed acquisition of Avadel as a "milestone and strategic step in the company's transformation." Pops indicated the acquisition "adds an important new revenue stream and growth opportunity" and accelerates Alkermes’ entry into the commercial sleep medicine market with LUMRYZ and the potential launch of alixorexton. Pops emphasized, "we plan to enter Phase III in narcolepsy this quarter following the completion of a rigorous Phase II program and with recently granted FDA breakthrough therapy designation." Joshua Reed, Senior VP & CFO, reported that "in 2025, we generated total revenues of nearly $1.5 billion, driven primarily by our proprietary product portfolio, which grew 9% year-over-year and generated approximately $1.2 billion in net sales." Reed added, "in order to fund the acquisition of Avadel, which closed in February 2026, we used approximately $775 million of cash from our balance sheet and entered into term loans totaling $1.525 billion due in 2031." C. Nichols, Senior VP & Chief Commercial Officer, commented, "2025 was another strong year of disciplined execution against our commercial strategy," noting proprietary product sales totaled $1.18 billion, at the high end of revised guidance. Nichols reported LUMRYZ generated approximately $279 million in net sales for 2025 and expects further growth in 2026. Outlook Reed detailed that for 2026, Alkermes expects total revenues in the range of $1.73 billion to $1.84 billion, proprietary product net sales of $1.52 billion to $1.6 billion, and manufacturing and royalty revenues of $210 million to $240 million. He stated, "we expect cost of goods sold...in the range of $365 million to $385 million" due to LUMRYZ inventory step-up and "R&D expenses...$445 million to $485 million." GA...
Earnings Call Insights: Recursion Pharmaceuticals (RXRX) Q4 2025 Management View Najat Khan, CEO, opened by stating that Recursion is at an important inflection point, harnessing its integrated AI-driven platform to "translate insights into evidence; evidence that this platform, the use of AI end-to-end can generate medicines that matter." Key updates included the first positive clinical proof of ...
Earnings Call Insights: Recursion Pharmaceuticals (RXRX) Q4 2025 Management View Najat Khan, CEO, opened by stating that Recursion is at an important inflection point, harnessing its integrated AI-driven platform to "translate insights into evidence; evidence that this platform, the use of AI end-to-end can generate medicines that matter." Key updates included the first positive clinical proof of concept (POC) with FAP and achieving a fifth milestone with Sanofi, highlighting growing momentum in both internal and partner portfolios. Khan emphasized "disciplined execution, which has now extended our cash runway into early 2028." Khan detailed three strategic pillars: tangible clinical and partner proof points, targeted investment in their AI platform, and disciplined operational execution. She noted, "we've seen a 35% reduction in pro forma operating expenses year-over-year." Ben Taylor, CFO, remarked, "2025 was a year of financial transformation for the company... that's how we were able to achieve the efficiencies that we did over the last year while still advancing a portfolio of 5 clinical programs, hitting multiple different partner milestones, really investing behind the growth in our platform as well." Outlook Management indicated that 2026 cash operating expenses are expected to be under $390 million, with guidance updated to reflect a cash runway extending to early 2028. Khan stated, "we are on track for our initial engagement with the FDA on REC-4881" and highlighted multiple upcoming clinical and partnership catalysts over the next 18 to 24 months, including data readouts and go/no-go decisions for key pipeline assets. Financial Results Taylor stated, "we ended the year with $754 million in cash." Operating expense reductions were highlighted, with a 35% year-over-year decrease in pro forma operating expenses and actual spend coming in 10% below earlier guidance. Partnership inflows surpassed $500 million cumulatively, and the company includes probability-...
J Studios/DigitalVision via Getty Images Introduction In today's market, it looks like the most important factor for tech stocks is whether they are cool. Traditional information technology stocks, which are not the loudest players in the AI race, are suffering from a devastating lack of coolness and, as a result, are sinking. The whole sector has been under pressure for months, and it doesn’t see...
J Studios/DigitalVision via Getty Images Introduction In today's market, it looks like the most important factor for tech stocks is whether they are cool. Traditional information technology stocks, which are not the loudest players in the AI race, are suffering from a devastating lack of coolness and, as a result, are sinking. The whole sector has been under pressure for months, and it doesn’t seem to get better. Looking at the iShares Expanded Tech-Software Sector ETF ( IGV ) and SPDR S&P Software & Services ETF ( XSW ), it’s especially evident because investors are scared that companies in them became outdated the minute LLMs (large language models) came out. The AI frenzy has created a binary world: you are either an AI leader like Nvidia ( NVDA ), or you are a company waiting to be crushed. This week, the market thought cyber would be disrupted as a result of the launch of Anthropic’s ( ANTHRO ) Claude Code Security tool, and all of the cybersecurity firms and HACK ETF plummeted. Although Amplify Cybersecurity ETF ( HACK ) has been performing way better than the other two, meaning cybersecurity is one of the sectors that is more ready for a rebound than the others. Data by YCharts There is, by the way, a reason for it. The more people use LLMs, the more threats they create, and the more work cybersecurity firms will have to do. So, in general, even though AI is viewed as a disruptor of different businesses, cybersecurity should be different because of the new threats and hacking tools. I just wrote an article about International Business Machines Corporation ( IBM ) and how Anthropic threatened their business as well. Returning to cyber stocks and Anthropic news, in my view, this is a major overreaction. It is the classic "do first, ask questions later" kind of selloff. In general, I start to think the market doesn’t really care about the details anymore, as long as it is AI-related. If it is, it will kill your business; if it’s not, there is no interest in the ...
Is your gut telling you there's just something not quite right about the market at this time? If so, you're not imagining things: Too many stocks are overvalued as well as technically overbought. It also feels like a few too many companies are vulnerable to some sort of economic turbulence ahead, even if we don't know what turbulence might be brewing. Be wary of coming to sweeping generalizations ...
Is your gut telling you there's just something not quite right about the market at this time? If so, you're not imagining things: Too many stocks are overvalued as well as technically overbought. It also feels like a few too many companies are vulnerable to some sort of economic turbulence ahead, even if we don't know what turbulence might be brewing. Be wary of coming to sweeping generalizations about "the market," though. It's not every stock. Indeed, you may already realize that most mid-caps don't bring any of these worries to the table right now. The S&P 400 Mid Cap Index 's forward-looking price/earnings ratio is unusually low at 17.7, in fact, while the S&P 500 Large Cap Index 's is unusually high at around 23. Image source: Getty Images. Continue reading
Ethereum Foundation Starts Staking ETH As Client Diversity Concerns Persist Authored by Christina Comben via CoinTelegraph.com, The Ethereum Foundation has begun staking part of its treasury, turning one of Ethereum’s most influential entities into a direct economic participant in network consensus. According to a Tuesday post on X, the foundation deposited 2,016 Ether and plans to stake about 70,...
Ethereum Foundation Starts Staking ETH As Client Diversity Concerns Persist Authored by Christina Comben via CoinTelegraph.com, The Ethereum Foundation has begun staking part of its treasury, turning one of Ethereum’s most influential entities into a direct economic participant in network consensus. According to a Tuesday post on X, the foundation deposited 2,016 Ether and plans to stake about 70,000 in total, with all rewards flowing back into its treasury to fund protocol research and development, ecosystem development and grants. In its announcement, the foundation stressed that new validators were being operated using open-source infrastructure, Dirk and Vouch, originally developed by Attestant and now part of Bitwise’s institutional staking stack. Dirk acts as a distributed signer, while Vouch serves as a validator client, allowing keys and operations to be split across multiple jurisdictions and operators rather than concentrated in a single machine or provider. The Ethereum Foundation has started staking its ETH. Source: Ethereum Foundation Chris Berry, head of Ethereum onchain engineering at Bitwise Onchain Solutions, told Cointelegraph that Vouch and Dirk were “built with the mindset to fulfill the duties of an honest validator in the safest way possible,” with an emphasis on client diversity, non-custodial control and compliance. Avoiding single points of failure According to the foundation, this setup was designed to avoid a “single point of failure” and to reflect best practices for secure, non-custodial staking. Crucially, the Ethereum Foundation says its configuration “employs minority clients” alongside a mix of hosted infrastructure and self-managed hardware in several jurisdictions. For Berry, those properties “really align with the core values of Ethereum,” and the EF’s adoption shows that the team is “confident in the implementation and stewardship of the software.” The choice is also significant in the context of long-running concerns that Ether...
Getty Images Domino’s ( DPZ ) continues to outperform other pizzerias by giving its customers better deals on pizza, and it plans to keep doing that in 2026. In fact, Domino’s is giving its customers such good deals that it’s putting other pizzerias out of business. As a result, Domino’s is growing faster than the US pizza sector as a whole and is likely to continue performing better than other re...
Getty Images Domino’s ( DPZ ) continues to outperform other pizzerias by giving its customers better deals on pizza, and it plans to keep doing that in 2026. In fact, Domino’s is giving its customers such good deals that it’s putting other pizzerias out of business. As a result, Domino’s is growing faster than the US pizza sector as a whole and is likely to continue performing better than other restaurants even though consumers are still cutting back. So, I think this company can maintain its current growth rate in 2026, but I think its current stock price reflects this factor as well. Domino’s achieved its long-term target of 3.0% same-store sales growth again in 2025 by posting stronger fourth quarter results . For Q4 2025, the pizzeria reported that its revenue rose 6.4% to $1.54 billion and its domestic same-store sales rose 3.7%. Additionally, Domino’s net income rose 7.2% to $181.6 million. Domino’s also reported stronger revenue growth than same-store sales growth because it’s still adding new stores in both the US and other countries. It’s a mature company, but it’s still finding more locations to build restaurants. Meanwhile, Domino’s stock price and valuation multiples have gone down since the last time I wrote about it . Now it has a forward P/E of 22, so it’s still trading at a premium, but I think it deserves one. The company maintained its long-term guidance for 3% same-store sales growth in its report and explained that it plans to maintain its growth by taking market share from other restaurants in the US. And it has franchisees that are operating in rapidly growing international markets as well. The Global Quick-Service Restaurant Market Is Still Growing Rapidly Domino’s is an international company, so the long-term growth rate of the global fast-food sector is important to consider. According to Persistence Market Research, the global QSR market is expected to generate sales of $321.6 billion in 2026 and is growing at a CAGR of 5.3%. So, the overal...
Check out some of the companies making headlines in midday trading. Coinbase — The cryptocurrency exchange's stock jumped 12% as it launched stock trading on its platform. The move is part of Coinbase's strategy to become the place for investors to trade not only cryptocurrency but also stocks, exchange traded funds and place prediction market bets. Paramount Skydance – Shares of the entertainment...
Check out some of the companies making headlines in midday trading. Coinbase — The cryptocurrency exchange's stock jumped 12% as it launched stock trading on its platform. The move is part of Coinbase's strategy to become the place for investors to trade not only cryptocurrency but also stocks, exchange traded funds and place prediction market bets. Paramount Skydance – Shares of the entertainment giant crept slightly higher after Paramount Skydance lifted its Warner Bros. Discovery takeover offer to $31 per share . That's up from $30 a share. Warner Bros. said its board would review the proposal. Netflix , which already has an agreement in place with Warner Bros., jumped 5%. Warner Bros. slipped less than 1%. Clear Secure — The biometric identity platform soared 25% after fourth-quarter adjusted earnings per share, revenue and adjusted EBITDA, as well as first-quarter revenue guidance, all exceeded Wall Street consensus estimates, according to FactSet data. Photronics — The maker of plates used to fabricate integrated circuits and flat-panel displays surged more than 12%. Fiscal first-quarter earnings per share before one-time items and revenue exceeded the average analyst estimate, FactSet data showed. Diageo — The British spirits company fell more than 13% after earnings missed, it gave lackluster guidance and set plans to slash its dividend. Diageo blamed softer demand in North America and China, and said further weakness in the U.S. will drive organic sales to fall by 2% to 3% in 2026. The results put pressure on other alcohol stocks, with Boston Beer down 5%, Constellation Brands off 3% and Molson Coors lower by 4%. GoDaddy — Shares dropped 16% after the company forecast annual revenue below estimates, citing slow AI-related adoption. GoDaddy expects revenue of $5.195 billion to $5.275 billion this year, short of analysts' consensus estimate of $5.28 billion, according to FactSet. Lowe's — The home improvement retailer tumbled about 5% after issuing lower-than...