Oleh Stefaniak/iStock via Getty Images Quarterly Snapshot Performance The Strategy returned 3.65% (net of fees) and the Russell Midcap Index returned 0.16%. Key Drivers Strong stock selection in industrials and materials were the primary drivers of relative outperformance while stock selection within consumer staples was the biggest relative detractor. Summary We are somewhat cautious with broad e...
Oleh Stefaniak/iStock via Getty Images Quarterly Snapshot Performance The Strategy returned 3.65% (net of fees) and the Russell Midcap Index returned 0.16%. Key Drivers Strong stock selection in industrials and materials were the primary drivers of relative outperformance while stock selection within consumer staples was the biggest relative detractor. Summary We are somewhat cautious with broad equity markets trading near all-time highs, propelled by AI-driven market exuberance. Our portfolio positioning has become incrementally more defensive over the past quarter. Market and portfolio review US equity markets posted positive returns once again in Q4, although the small and large portions of the market were stronger performers, returning 2.19% and 2.41%, respectively. The mid-cap range was a relative laggard, with the Russell Mid Cap Index only slightly positive at 0.16%. Despite a roughly flat Q4, mid caps were up double-digits for the full year at +10.60%. From a sector perspective, performance was relatively mixed, with about half the sectors in the black and half the sectors in the red for the quarter. The top-performing areas were health care (+6.4%) followed by materials (+3.4%) and information technology (+2.5%), while the worst-performing sectors were real estate (-4.8%), communication services (-4.7%), and utilities (-3.6%). As has been the case for most of 2025, the artificial intelligence ( AI )-related spending theme continued to be a primary driver in equity markets, although we did see a bit of a breather in December due to intensified investor scrutiny around AI developments along with increased discussion of market bubbles. Many of the top-performing areas within the portfolio tended to be beneficiaries of the ongoing AI-spending buildout, including several of our top performers from industrials, materials and information technology. We continue to be mindful in evaluating valuation versus fundamentals in these cases, as there are many AI-related b...
Key Points Chevron's strong execution last year sets the stage for a big 2026. The oil company expects to generate significantly more free cash flow at the current oil price point. It has several additional catalysts, including higher oil prices and Venezuela. 10 stocks we like better than Chevron › Last year was a transformational year for Chevron (NYSE: CVX). The global oil and gas giant set pro...
Key Points Chevron's strong execution last year sets the stage for a big 2026. The oil company expects to generate significantly more free cash flow at the current oil price point. It has several additional catalysts, including higher oil prices and Venezuela. 10 stocks we like better than Chevron › Last year was a transformational year for Chevron (NYSE: CVX). The global oil and gas giant set production records, started up several major growth projects, and significantly strengthened its portfolio by closing its acquisition of Hess. These catalysts enabled Chevron to grow its adjusted free cash flow by 35% even as oil prices fell 15%, allowing it to return a record $27 billion to shareholders through dividends and repurchases. Chevron's strong execution last year sets the stage for even better performance in 2026. It could have the fuel to be the top-performing oil stock by the end of this year. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Ramping up in 2026 Chevron started up several major growth capital projects last year, including Ballymore and Whale in the Gulf of Mexico (also known as the Gulf of America in the U.S.) It also completed its Future Growth Project in Kazakhstan last year. Additionally, the company anticipates bringing more capacity online at its Leviathan field in Israel early this year. Those projects, along with a full year of production from its recently acquired Hess assets, put Chevron on pace to increase its output by 7% to 10% this year. That's a meaningful production increase from a company of its size (Chevron produced 3.7 million barrels of oil equivalent per day last year). The company also remains on track to deliver $3 billion to $4 billion in structural cost savings by the end of this year. This combination of growing production and falling costs supports Chevr...
"Body stigma content can be incredibly harmful to children, which is why our codes require sites and apps to protect children from encountering it, and to act swiftly when they become aware of it," a spokesperson for the regulator said.
"Body stigma content can be incredibly harmful to children, which is why our codes require sites and apps to protect children from encountering it, and to act swiftly when they become aware of it," a spokesperson for the regulator said.
GamePH/iStock via Getty Images The following segment was excerpted from the Oakmark U.S. Concentrated Strategy Q4 2025 Commentary. Portfolio Performance The portfolio's return was 8.36% (net) for the reporting period. This compares to the Russell 1000 Value Index that returned 3.81% for the same period. Performance highlights Contributors Warner Bros Discovery ( WBD ) Alphabet ( GOOG ) First Citiz...
GamePH/iStock via Getty Images The following segment was excerpted from the Oakmark U.S. Concentrated Strategy Q4 2025 Commentary. Portfolio Performance The portfolio's return was 8.36% (net) for the reporting period. This compares to the Russell 1000 Value Index that returned 3.81% for the same period. Performance highlights Contributors Warner Bros Discovery ( WBD ) Alphabet ( GOOG ) First Citizens Bancshares ( FCNCA ) Detractors Equifax ( EFX ) Paycom Software ( PAYC ) Liberty Broadband CI C ( LBRDK ) Top contributors: Warner Bros Discovery ( WBD ) was a contributor during the quarter. The U.S.-headquartered media company's stock price surged as multiple parties submitted offers to acquire all or part of the business. Following several rounds of bidding, WBD announced an agreement to sell its Streaming and Studios business to Netflix, while spinning the Global Networks business to shareholders. Paramount Skydance subsequently made a direct $30 per share offer to shareholders for the entire company. We are pleased with the steps the WBD board has taken thus far to unlock shareholder value. We will continue to closely monitor developments as this bidding war unfolds. Alphabet was a contributor during the quarter. The U.S.-headquartered technology conglomerate's stock price jumped after it delivered impressive third-quarter earnings. Search revenue growth beat consensus expectations as Google continues to see strong user engagement trends. Results were also ahead of expectations in the Cloud segment, and the outlook for this business remains robust given accelerating demand for AI compute. We continue to believe Alphabet is undervalued on a sum-of-the-parts basis and see potential for the company's AI leadership to drive further upside across the portfolio. First Citizens Bancshares was a contributor during the quarter. The U.S.-headquartered diversified bank's stock price rose after it delivered solid results, with earnings per share exceeding consensus expectation...
US Treasuries were little changed ahead of January’s delayed employment report, which may fan expectations of deeper interest rate cuts this year. Bond yields have sunk to around their lowest levels in four weeks, boosted by an unexpected setback in US retail sales and the view that today’s non-farm payrolls may come in weaker than anticipated. On Monday, National Economic Council Director Kevin H...
US Treasuries were little changed ahead of January’s delayed employment report, which may fan expectations of deeper interest rate cuts this year. Bond yields have sunk to around their lowest levels in four weeks, boosted by an unexpected setback in US retail sales and the view that today’s non-farm payrolls may come in weaker than anticipated. On Monday, National Economic Council Director Kevin Hassett said lower US jobs numbers can be expected in the months ahead. The 10-year yield was down one basis point at 4.14% on Wednesday, approaching the lowest levels of the year. The two-year yield, which is more sensitive to monetary policy, was steady at 3.45%. “The labor market appears to hold the key to the path of rates,” said Brendan Murphy , Head of Fixed Income, North America at Insight Investment. While Federal Reserve Chair Jerome Powell has noted signs of stabilization in the labor market, the US government shutdown and ongoing political risks mean the Fed would likely “be responsive to any additional signs of labor‑market deterioration,” Murphy added. Money markets are pricing 59 basis points of cuts by year-end, equivalent to two quarter-point moves and one-in-three odds of a third reduction. Economists surveyed by Bloomberg predict US employers added 65,000 workers in January — the biggest jobs gain in four months — and the unemployment rate is projected to hold steady at 4.4%. Still, Hassett’s comments mean markets have already priced in a softer reading than consensus. Poised for Data “The market is really poised for that labor market data to come in weaker,” said Rufaro Chiriseri , head of fixed income at RBC Wealth Management, in an interview with Bloomberg TV. Should the payrolls figure prove even softer than expected, the 10-year yield could drop toward 4%, she said, a level it last reached in late November. Analysts are also anticipating an annual revision to the jobs count, which is expected to reveal a markdown in the year through March 2025. Bloombe...
Maryland Gov. Wes Moore talks about being excluded from White House governors' event NPR's Michel Martin speaks with Maryland's Democratic Gov. Wes Moore about being disinvited from a White House event and his support for redistricting in his state. Politics Maryland Gov. Wes Moore talks about being excluded from White House governors' event Maryland Gov. Wes Moore talks about being excluded from ...
Maryland Gov. Wes Moore talks about being excluded from White House governors' event NPR's Michel Martin speaks with Maryland's Democratic Gov. Wes Moore about being disinvited from a White House event and his support for redistricting in his state. Politics Maryland Gov. Wes Moore talks about being excluded from White House governors' event Maryland Gov. Wes Moore talks about being excluded from White House governors event Listen · 4:42 4:42 NPR's Michel Martin speaks with Maryland's Democratic Gov. Wes Moore about being disinvited from a White House event and his support for redistricting in his state. Sponsor Message Sponsor Message
Maryland's Democratic governor among those excluded from White House event toggle caption Kevin Dietsch/Getty Images/Getty Images North America President Trump has dispensed with another White House tradition: meeting with all the nation's governors. The National Governors Association meets in Washington, D.C., every year with this year's meeting scheduled for next week. The traditionally bipartis...
Maryland's Democratic governor among those excluded from White House event toggle caption Kevin Dietsch/Getty Images/Getty Images North America President Trump has dispensed with another White House tradition: meeting with all the nation's governors. The National Governors Association meets in Washington, D.C., every year with this year's meeting scheduled for next week. The traditionally bipartisan event is an opportunity for governors to meet with the president and discuss issues affecting their constituents. It's usually followed by a formal dinner. This year, the Trump Administration only invited Republicans to the meeting and disinvited some Democratic governors from the formal dinner scheduled to follow. Sponsor Message Maryland Governor Wes Moore is one of the two disinvited governors. Moore said the decision sent the same message as the president's recent refusal to apologize for posting a racist meme of the Obamas. "This message of disrespect — of his own personal feelings of supremacy — I think, are things that are just deeply unneeded reminders of just how unstable his leadership continues to be," Moore said. White House Press Secretary Karoline Leavitt addressed the exclusions at a press briefing on Tuesday. "It's the people's house," Leavitt said. "It's also the president's home. And so he can invite whomever he wants to dinners and events here at the White House." Democratic leaders who were invited to the dinner have said they will skip the dinner. The National Governors Association said it won't "facilitate" events that don't include all governors, including next week's dinner. Moore discussed the dinner and his state's redistricting with NPR's Michel Martin. This interview occurred before other Democratic leaders said they would skip the dinner and before Leavitt's press briefing. Click the play button in the blue box above to listen to the full conversation.
Ukrainian sled racer says he will wear helmet honoring slain soldiers despite Olympic ban toggle caption Alessandra Tarantino/AP MILAN - Ukrainian sled racer Vladyslav Heraskevych says he will attempt to race in Winter Olympic competitions wearing a helmet that honors athletes slain while defending his country from Russia's full-scale invasion, despite a ban by the International Olympic Committee....
Ukrainian sled racer says he will wear helmet honoring slain soldiers despite Olympic ban toggle caption Alessandra Tarantino/AP MILAN - Ukrainian sled racer Vladyslav Heraskevych says he will attempt to race in Winter Olympic competitions wearing a helmet that honors athletes slain while defending his country from Russia's full-scale invasion, despite a ban by the International Olympic Committee. "We will continue to fight for the right to compete in this helmet. I truly believe that we didn't violate any law and any rule," Heraskevych said on Tuesday. "The IOC decision on that regard is, I would say, a little bit (of a) circus." Sponsor Message Heraskevych is a serious medal contender in skeleton racing - a high-speed sport where athletes hurtle face-forward down an icy track - at the Milan Cortina Games. He finished fourth at last year's world championships. He arrived in Italy hoping to raise awareness about Ukraine's struggle to survive during a bitterly cold winter when Russian forces have made slow but significant advances on the battlefield. "If you follow (the) situation, you know that in Ukraine now it's a very difficult time. People sit in houses without electricity, without water, without heating," Heraskevych told journalists. Can sport be neutral in a time of war? On Monday, the International Olympic Committee (IOC) issued a ruling that the helmet could not be worn during competition because it would violate terms of the Olympic charter designed to keep politics out of the Games. At a press conference on Tuesday, IOC spokesperson Mark Adams defended that decision. "[W]e have to concentrate on athletes' performance and sport on the field of play," Adams said in Milan. "The Games need to be separated from not just political and religious topics, but all types of interference so that all athletes can concentrate on performance." According to Adams, allowing Heraskevych to commemorate victims of the Russia-Ukraine war would lead to a flood of other politic...
Jon Tetzlaff/iStock Editorial via Getty Images Introduction XPO, Inc. ( XPO ) has run up 40% since my downgrade of the stock to 'hold' in February of last year. Back then, my thesis was that the company was continuing to make progress on its operating ratio, its customer service levels, and had been firing on just about all metrics. But at the same time, given the cyclical nature of the business, ...
Jon Tetzlaff/iStock Editorial via Getty Images Introduction XPO, Inc. ( XPO ) has run up 40% since my downgrade of the stock to 'hold' in February of last year. Back then, my thesis was that the company was continuing to make progress on its operating ratio, its customer service levels, and had been firing on just about all metrics. But at the same time, given the cyclical nature of the business, I thought it prudent to avoid the stock, seeing as it was likely fairly valued. A year later, and with the stock soaring in recent months, Q4'25 was another strong quarter that was better than what the market had been expecting. Strong profitability metrics across the board, even with mediocre volumes, were a continued theme. But while these operational gains on XPO's management's part deserve credit and have strengthened the company’s balance sheet and profitability profile, I think it raises the question of how much is already reflected in the valuation and how much upside is realistically achievable without a meaningful recovery in demand. Q4'25 Results XPO delivered a strong close to 2025 with Q4 results that surpassed the sellside’s conservative expectations. On revenues, XPO’s sales clocked in at $2.0 billion , up 5% compared to last year, as yield gains despite what is a challenging freight environment. On the bottom line, EPS of $0.88 was 12 cents higher than consensus estimates. Seeking Alpha When looking at what drove results this quarter, North American LTL revenues were up slightly by 1% to $1.2 billion as pricing improvements continued to outpace the volume decline, while European operations put up an 11% increase on the back of its eighth consecutive quarter of constant-currency growth. Collectively, XPO’s EBITDA came in at $312 million, with LTL contributing $285 million and Europe $32 million. That’s 11% higher compared to last year and excludes real estate gains the company recorded. With yield excluding fuel rising 5.2% in the quarter and 6.0% for the full...
asbe/iStock via Getty Images Investment Thesis I have about half of my overall portfolio focused on bullish positions, either through stocks or through options, and these are concentrated in 4-5 industries, especially IT (hardware and software). With such concentration, it’s normal to try to find some balance from uncorrelated positions. One way is through some different type of assets, like preci...
asbe/iStock via Getty Images Investment Thesis I have about half of my overall portfolio focused on bullish positions, either through stocks or through options, and these are concentrated in 4-5 industries, especially IT (hardware and software). With such concentration, it’s normal to try to find some balance from uncorrelated positions. One way is through some different type of assets, like precious metals, as I described in my recent article about silver. Another way is through different options strategies, which benefit from their underlying in a neutral range or from an increase in IV (Implied Volatility). And yet another way is to have a few positions in my bullish portfolio that are not tightly correlated with the general market. The difficult part is to have these positions with both defensive capabilities and yet above-average perspectives. For example, I was a big fan of utilities, especially regulated electric utilities, at the beginning of 2025, because this is a defensive industry, but with short-term tailwinds brought by decreasing interest rates and long-term tailwinds brought by an increased demand for electricity for data centers. However, I can’t find another undervalued name today, while the overall sector might be a little overvalued. Stock exchange companies are also counter-cyclical, benefiting from high volatility, which is very usual in declining markets. But the market knows that, and it’s very difficult to find such stocks undervalued. For years, corporate bonds represented one of the last bastions of the human trader, with just “8% of US investment-grade transactions and 2% of high-yield trades handled electronically in 2013.” But things have evolved significantly since then, with electronic trading at ~44% for US bond trading in 2024. MarketAxess Holdings Inc. ( MKTX ) is a pioneer in transitioning the historically OTC (over the counter), voice-driven bond market into a modern, electronic, and data-driven environment. However, it was impos...
Swiss voters will get to decide in June whether 10 million people is all the country can bear. The proposal — backed by the right-wing People’s Party, or SVP — is going to a national vote after supporters gathered enough signatures under Switzerland’s direct democracy system. Both the government and parliament are against the so-called “sustainability initiative” to cap the population, largely shu...
Swiss voters will get to decide in June whether 10 million people is all the country can bear. The proposal — backed by the right-wing People’s Party, or SVP — is going to a national vote after supporters gathered enough signatures under Switzerland’s direct democracy system. Both the government and parliament are against the so-called “sustainability initiative” to cap the population, largely shutting out immigrants when the 10-million number is reached. Still, it has the support of about 48% of voters, according to a poll in December. The vote will take place on June 14, the government announced Wednesday. Switzerland’s population has grown by some 70% since 1960 to 9.1 million, thanks largely to labor demand, and the attraction of high wages and quality of life . Campaigners for the population restriction argue that unchecked immigration has led to strained infrastructure and housing shortages. But the initiative is particularly controversial as it would affect Switzerland’s free-movement pact with the surrounding European Union. This could cut off companies from talent abroad — which many have said is essential — and also threaten other connected treaties that give Swiss exporters access to the bloc’s single market. Some of the high poll support for the initiative reflects both economic frustration, particular in relation to housing and other costs, amid anti-immigrant sentiment in the country. “GDP per capita has not grown in the last three years and real wages have declined,” said Stefan Legge, a professor at the University of St Gallen. “Quite a few people are worse off now than they were three years ago. And then you look for someone to blame.” Switzerland Is Asking Itself: Is 10 Million People Too Many? Why Switzerland Is Weighing a Population Cap: QuickTake Swiss Population Cap Proposal Gets Almost 50% Backing in Poll
The US Federal Aviation Administration closed the airspace around the border city of El Paso, Texas, for 10 days, citing “special security reasons.” All flights into and out of the city are suspended, the FAA said without elaborating on the reasons. Flights from El Paso International Airport were halted starting Feb. 10 at 11:30 p.m. local time and will stay suspended until the same time on Feb. 2...
The US Federal Aviation Administration closed the airspace around the border city of El Paso, Texas, for 10 days, citing “special security reasons.” All flights into and out of the city are suspended, the FAA said without elaborating on the reasons. Flights from El Paso International Airport were halted starting Feb. 10 at 11:30 p.m. local time and will stay suspended until the same time on Feb. 20, the airport operator said in a travel advisory posted on its official Facebook and Instagram accounts. The temporary restrictions cover 10 nautical miles around the city and apply to an altitude of as much as 17,999 feet, according to the FAA notice to airmen — a type of advisory warning of hazards and operational situations. “No pilots may operate an aircraft in the areas covered by this NOTAM,” the FAA notice said. The White House and FAA didn’t immediately respond to requests for comment outside of normal business hours.