Core Insights - Wix.com Ltd. is experiencing strong business fundamentals despite a significant decline in stock price, with cash flow and growth metrics indicating a healthy operational performance [1][11][12] Company Overview - Wix.com Ltd. is a leading provider of cloud-based website development and business management solutions, serving hundreds of millions of registered users globally [6] - The company operates on a scalable, subscription-driven business model, offering a comprehensive suite of tools for users to build and manage their online presence [6] Financial Performance - In the third quarter, Wix reported a revenue increase of 14% year-over-year, reaching $505 million, with bookings growing at the same rate [11] - Free cash flow for the quarter was $127 million, approximately 25% of revenue, and could have exceeded $159 million excluding certain costs [11] - Annual Recurring Revenue (ARR) from Creative Subscriptions rose to $1.46 billion, while Business Solutions revenue increased by 18% [11] Investment Activity - Elwood Capital Partners increased its stake in Wix by acquiring 17,710 shares, bringing its total holding to 40,033 shares valued at $7.11 million as of September 30 [2][3] - The new position represents 4.34% of Elwood Capital's assets under management [3] Market Context - As of the latest data, Wix shares were priced at $105.43, reflecting a 53% decline over the past year, significantly underperforming the S&P 500, which rose by 15% during the same period [3] - The stock has decreased approximately 70% from its 2021 highs, indicating a disconnect between market sentiment and the company's underlying fundamentals [12] Future Outlook - Management anticipates that the AI-driven product Base44 will generate at least $50 million in ARR by year-end, with potential growth towards $100 million due to strong early adoption [11]

Core Viewpoint - Adjusting investment strategies in the S&P 500 may enhance portfolio positioning for upcoming market rotations, particularly given the current concentration in a few stocks [1][2]. Investment Concentration - Stock investing has become highly concentrated, with approximately 40% of S&P 500 investments tied to just 10 stocks, increasing the risk of significant drawdowns if the market shifts away from technology [2][5]. Importance of Diversification - The rise of the "Magnificent Seven" stocks and the AI boom underscores the necessity for diversification, as many investors may face risks associated with concentrated positions in tech [2][5]. Invesco S&P 500 Equal Weight ETF (RSP) - The Invesco S&P 500 Equal Weight ETF offers an alternative by equally weighting all S&P 500 components, thus reducing the overexposure to technology and providing a different sector concentration [4][5]. - In RSP, the top five sector holdings are industrials (15.6%), financials (14.5%), technology (14.4%), healthcare (13.1%), and consumer discretionary (9.4%), contrasting sharply with the nearly 35% tech weighting in the cap-weighted S&P 500 [5]. Market Trends - Recent market trends indicate a shift, with technology lagging behind the S&P 500, while cyclicals and healthcare sectors have gained momentum [7][8]. - Falling interest rates have disproportionately benefited small-cap stocks, enhancing the appeal of the equal-weight approach [8]. - Economic growth risks highlighted by labor market issues have led to healthcare outperforming other sectors, making it a defensive choice during uncertain times [8]. Tech Sector Outlook - The momentum in the tech sector appears to be waning, with growth rates from the AI boom starting to slow, prompting investor caution [9][10]. - The equal-weight strategy of RSP allows investors to remain engaged in the market regardless of which sectors are leading, making it a strategic choice for those looking to mitigate concentration risk [10].

Core Insights - The automotive industry is experiencing a shift in investor sentiment due to advancements in technology, including autonomous driving and AI integration [1][2] Rivian - Rivian has developed its own AI chip to enhance autonomous driving capabilities, which can process 5 billion pixels per second [4][5] - The new Autonomy+ driver-assistance package will be priced at $2,500 upfront or $49.99 per month, significantly cheaper than Tesla's equivalent offering [6] - Despite these advancements, Rivian's developments may not significantly alter the investment thesis until further revenue streams are established [7][8] Ford - Ford plans to take a $19.5 billion charge to pivot from full electric vehicles to a focus on hybrids and more affordable EVs, expecting hybrids and EVs to make up 50% of global volume by 2030, up from 17% this year [9][10] - The company is also entering the battery energy storage systems market, repurposing a plant in Kentucky and investing approximately $2 billion over the next two years [11][12] - Ford's strategic pivot towards hybrids and energy storage reflects a response to market demand, which could be beneficial for investors [15]

Company Overview - Hillman Solutions is a leading North American provider of hardware products and related merchandising services, leveraging a diverse brand portfolio and integrated supply chain to meet the needs of retail and industrial customers [6] - The company generates revenue primarily through direct sales of hardware and related products, as well as value-added merchandising services to various customers including hardware stores and industrial original equipment manufacturers [9] Financial Performance - In the third quarter, Hillman posted record net sales of $424.9 million, representing an 8% year-over-year increase [10] - Record adjusted EBITDA reached $88 million, up from $64.8 million a year earlier, while adjusted diluted EPS rose to $0.22 from $0.13 [10] - Full-year adjusted EBITDA guidance was raised to a range of $270 million to $275 million, with sales outlook remaining steady [10] - The company's net debt to trailing EBITDA improved to 2.5 times, indicating enhanced balance-sheet flexibility [10] Investment Activity - Anchor Capital Management Company increased its stake in Hillman Solutions by acquiring 717,772 shares, bringing its total position to 1.42 million shares valued at $13.0 million as of September 30 [2][3] - Hillman Solutions now constitutes 11.2% of Anchor Capital Management Company's assets under management [3] Market Performance - As of the latest report, Hillman Solutions shares were priced at $8.99, reflecting a 9% decline over the past year, underperforming the S&P 500, which increased by approximately 15% during the same period [3][4]

Core Viewpoint - Warren Buffett will step down as CEO of Berkshire Hathaway at the end of 2025, marking the end of an era for the investment firm he has led for nearly 60 years [1][2]. Group 1: Leadership Transition - Greg Abel, a long-time steward under Buffett, will take over as CEO starting in 2026 [2]. - The investment community is reflecting on Berkshire's significant decisions over the past year as Buffett's tenure approaches its conclusion [2]. Group 2: Investment Strategy - Berkshire Hathaway previously held positions in two S&P 500-themed ETFs: the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF Trust [5]. - In its Q4 2024 13F filing, Berkshire disclosed that it sold its positions in both S&P 500 ETFs late last year [6]. Group 3: Market Analysis - The S&P 500 Shiller CAPE ratio was around 37 at the end of 2024, indicating a potentially overvalued market [9]. - Historical data shows that the CAPE ratio has only reached similar levels twice before, leading to significant market corrections [10]. - The current CAPE ratio is approaching 40, suggesting the market may be increasingly heated and raising concerns about a potential correction [15]. Group 4: Buffett's Investment Philosophy - Buffett is known for his contrarian approach and typically avoids chasing market hype [8]. - The decision to sell the S&P 500 ETFs may reflect Buffett's view that the market was unsustainably frothy, particularly due to the influence of a few mega-cap stocks benefiting from AI advancements [12]. - Despite the S&P 500 being on track for its third consecutive year of double-digit gains, Buffett's decision to exit the ETFs may not have been poorly timed, as he prioritizes finding attractively valued stocks [13][14]. Group 5: Long-term Investment Outlook - Investing in the S&P 500 has historically proven to be profitable, regardless of market timing [15]. - There is no immediate need for investors to panic or strictly follow Buffett's investment moves, given the robust long-term average returns of the S&P 500 [16].

Company Overview - Standex International Corporation is a mid-cap industrial manufacturer with a global footprint, operating through five specialized segments that address diverse commercial and industrial needs [6] - The company emphasizes innovation in engineered products and customization to serve demanding end markets, differentiating itself within the industrial machinery sector [6] Financial Performance - Standex reported trailing twelve-month (TTM) revenue of $837.07 million and net income of $52.62 million [4] - The adjusted operating margin expanded by 210 basis points year over year to 19.1%, while adjusted EBITDA climbed 38% to $47.1 million [11] - Sales jumped 27.6% year over year to $217.4 million, driven by acquisitions and accelerating demand in fast-growth end markets like electrical grid infrastructure, defense, aviation, and space [10] Market Position and Strategy - Standex's latest quarter saw record orders of $226 million, pushing the book-to-bill ratio above one, indicating strong forward revenue visibility [10] - The company generates revenue through the design, manufacture, and sale of specialized industrial products across five business segments, serving commercial and industrial customers globally [9] - Standex's broad product offering includes electronics sensors, custom transformers, mold texturizing, scientific refrigeration, engineered components for aerospace and defense, and specialty merchandising equipment [9] Investment Activity - Anchor Capital Management Company increased its position in Standex by 29,998 shares, bringing the total to 98,394 shares valued at $20.85 million as of September 30 [2][3] - Standex now constitutes 17.95% of Anchor Capital's 13F assets under management (AUM), making it the fund's second-largest position [3]

Company Overview - Kinetik Holdings Inc. is a midstream energy company with a significant presence in the Texas Delaware Basin, providing critical infrastructure and services to support the energy value chain [6] - The company operates on a contract-driven business model, which allows it to deliver stable cash flows and maintain a high dividend yield of 8.7% [4][6] - Kinetik's revenue for the trailing twelve months (TTM) is reported at $1.72 billion, with a net income of $125.45 million [4] Recent Developments - SIR Capital Management disclosed a sale of 583,116 shares of Kinetik Holdings, reducing its position by approximately $25.98 million during the third quarter [2][3] - Following the sale, SIR Capital's Kinetik position now totals 227,722 shares valued at $9.73 million, representing 0.87% of its 13F reportable assets, down from 3.19% in the previous quarter [2][3] Financial Performance - In the third quarter, Kinetik generated $242.6 million in adjusted EBITDA and $158.5 million in distributable cash flow, with free cash flow reported at $50.9 million [11] - Management revised the full-year 2025 adjusted EBITDA guidance to a range of $965 million to $1.005 billion, citing slower-than-expected volume ramp-ups and ongoing takeaway constraints [11] - The company's net debt stood at approximately $4.15 billion at the end of the quarter, with leverage around 4.3 times adjusted EBITDA, indicating a tight financial position in a weaker commodity environment [11] Market Context - Kinetik's shares were priced at $35.73, reflecting a significant decline of 38% over the past year, underperforming the S&P 500, which increased by about 15% during the same period [3] - The reduction in SIR Capital's stake highlights the importance of execution and balance-sheet discipline in capital-intensive midstream businesses, despite Kinetik's long-term investment thesis remaining intact [10][12]

Core Viewpoint - The demand for energy is increasing, and Bloom Energy is currently a more attractive investment compared to Plug Power, which has struggled financially and has not yet turned a profit [1][4]. Company Overview: Plug Power - Plug Power has been a pioneer in the clean hydrogen economy, focusing on fuel cells, electrolyzers, and hydrogen infrastructure aimed at decarbonizing industries like transportation and logistics [1]. - Despite being in operation for over 25 years, Plug Power has never reported an annual profit, with a reported loss of over $2.1 billion on revenue of $676 million in the past 12 months [2][6]. - The company is facing challenges in developing the hydrogen market due to high costs of storage and transport, which have hindered market adoption [5]. - Plug Power has initiated Project Quantum Leap to reduce costs and focus on profitable business lines, aiming for a break-even gross margin by the end of the year and positive EBITDA by the second half of next year [8]. Company Overview: Bloom Energy - Bloom Energy offers solid-oxide fuel cell power systems for on-site electricity generation, which can quickly meet the growing energy demands of data centers and industrial businesses [10]. - The company has secured significant financing arrangements, including a $5 billion deal with Brookfield Asset Management and a power deal with Oracle, showcasing its rapid deployment capabilities [12]. - Analysts project Bloom will generate $1.9 billion in sales this year and $2.46 billion next year, with expected improvements in earnings per share from -$0.14 this year to $0.64 next year [13]. Market Context - U.S. electricity demand is anticipated to grow at a rate of 2.5% annually over the next decade, significantly outpacing the growth rate of the past decade, creating a favorable environment for companies like Bloom Energy [17]. - Bloom Energy's fuel cells are positioned as a crucial solution to meet the increasing demand for on-site power, providing a strong growth opportunity for the company [18].

Company Overview - Chord Energy Corporation is an independent oil and gas exploration and production company focused on the Williston Basin, emphasizing efficient resource extraction and disciplined capital allocation for long-term growth [6][9] - As of the latest report, the company's market capitalization is $5.21 billion, with a revenue of $5.16 billion and a net income of $170.64 million over the trailing twelve months (TTM) [4] Recent Developments - SIR Capital Management has completely exited its position in Chord Energy Corporation, selling all 377,585 shares for a total of $36.57 million, which represented 3.26% of the fund's assets last quarter [2][10] - The stock price of Chord Energy Corporation is currently $90.91, reflecting a 20% decline over the past year, contrasting with the S&P 500's increase of approximately 15% during the same period [3] Operational Performance - In the most recent quarter, Chord Energy delivered solid production above the midpoint of guidance, generating over $575 million in adjusted EBITDA and returning a significant portion of free cash flow to shareholders through dividends and buybacks [7][10] - Despite the stock's poor performance, the company's operational fundamentals remain strong, with management focusing on capital discipline and efficiency gains [10]

As the market broadens out heading into 2026, high-yield dividend stocks could be set to finally outperform the S&P 500.High-yield products appear to be gaining in popularity in 2025. Most of the excitement is centered around the single-stock, leveraged, and derivative income funds that are highly volatile and highly risky, but also offer attractive yields.I still prefer the more traditional high-income products. ETFs that invest in equities with above-average yields or use conservative covered-call strateg ...