Aristotle Capital Boston, LLC, an investment advisor, released its fourth-quarter investor letter for “Small Cap Equity Fund”. A copy of the letter can be downloaded here. U.S. small-cap equities reported modest gains in the fourth quarter of 2025. The quarter started as a continuation of the post-Liberation Day risk-on market environment, while it ended on a strong note, driven by a positive macroeconomic backdrop. Attractive valuations, earnings recovery, broadening of the market, and a shift from mega-ca ...

Core Insights - Ally Financial demonstrated solid operational performance in 2025, with expectations for continued growth into 2026, particularly in net interest margin and customer acquisition [5][6][12] Financial Performance - Retail auto credit losses were reported at 1.97%, with a flat expense structure and an increase in the CET1 ratio [1] - The net interest margin was around 350 basis points at year-end 2025, with expectations for a full-year margin of 360 to 370 basis points [6] - Ally's retail auto net charge-off guidance for 2026 is projected between 1.8% and 2.0%, with current trends indicating a midpoint expectation [9] Business Segments - The company focuses on three key operating businesses: Dealer Financial Services, insurance, and Corporate Finance, supported by a strong deposits franchise [4] - In Corporate Finance, Ally maintains a low average annualized loss rate of about 30 basis points since going public in 2014, while the asset base has grown [2] - Ally's insurance segment is expected to grow, although not linearly, due to various external factors impacting performance [10] Strategic Focus - Ally's strategic shift emphasizes strengthening core franchises and enhancing dealer relationships, which has led to record application flow and written premiums in insurance [3][4] - The company aims to leverage structural tailwinds for margin expansion, particularly through higher-yielding loans replacing lower-yielding securities [7] Customer and Deposit Growth - Ally has achieved 67 consecutive quarters of customer growth since its inception in 2009, indicating a strong customer acquisition strategy [1] - Deposit balances were flat in 2025, but the company anticipates that asset growth will typically lead to deposit growth in 2026, supported by alternative funding sources [12] Capital Management - Ally expects sufficient capital generation to support loan growth, dividends, and buybacks, with a goal of improving the CET1 ratio to the "nines over time" [13] - The company views buybacks as part of a balanced approach to capital management, considering valuation and strategic objectives [13]

Core Insights - The disconnect between social media portrayals of travel and the reality of financial struggles among young adults raises questions about how individuals manage to vacation while claiming to be broke [1] Group 1: Debt as a Factor - A predominant explanation for the ability to travel despite financial constraints is the reliance on debt, including credit cards and "buy now pay later" services [2] - Many individuals are funding vacations through maxed-out credit cards and high-interest loans, leading to a hidden financial burden [3] - Personal anecdotes reveal that some have taken significant loans, such as a $10,000 loan for a trip, indicating a trend of prioritizing travel over financial stability [2][3] Group 2: Prioritization of Travel - A smaller segment of individuals argues that vacations are a matter of personal priorities, with some budgeting specifically for travel despite living paycheck to paycheck [4] - The notion that travel is a non-negotiable expense for some individuals suggests a cultural shift in how young adults allocate their finances [4]

United Parcel Service on Friday asked a federal judge to throw out a Teamsters union complaint seeking to block the company from offering $150,000 voluntary buyouts to package car drivers, saying any concerns can be adequately addressed by arbitration provisions in the existing contract. The size and structure of the separation package carries the risk of internal union turmoil if rank-and-file members are interested in resigning against the leadership’s objections. The Teamsters, which represents about ...

Core Viewpoint - The fourth-quarter performance of U.S. small-cap equities showed modest gains, supported by a positive macroeconomic backdrop and attractive valuations, although the Aristotle Small Cap Equity Fund underperformed the Russell 2000 Index [1]. Company Performance - Acadia Healthcare Company, Inc. (NASDAQ: ACHC) was identified as a major performance detractor for the Aristotle Small Cap Equity Fund, with its stock closing at $16.77 per share on February 13, 2026, reflecting a one-month return of 43.58% but a significant decline of 59.16% over the past twelve months [2][3]. - The company reported mixed third-quarter earnings results, beating estimates but subsequently reducing forward guidance, which led to a sell-off in its stock [3]. Market Position and Hedge Fund Interest - Acadia Healthcare Company, Inc. is not among the 30 most popular stocks among hedge funds, with 40 hedge fund portfolios holding its shares at the end of the third quarter, a slight increase from 39 in the previous quarter [4]. - While the potential of Acadia Healthcare as an investment is acknowledged, the company is viewed as having less upside potential compared to certain AI stocks, which are considered to carry less downside risk [4].

Side gig income can be a great way to boost cash flow, pay down debt or build savings. But as a gig worker, you may be unaware that the money you make is fully taxable, the same as a regular paycheck. The problem is that unlike with income you earn from an employer, no taxes are automatically withheld. This means that unless you’re on top of things, you could be in for a nasty surprise at tax time, and that’s a situation you definitely want to avoid. With that in mind, here’s how side gig taxes really w ...

The latest merry-go-round of executive changes at footwear firms has been centered around the critical chief financial officer position. Since the start of the new year, Caleres, Genesco, On and Designer Brands have all announced moves that will impact their operations in the year ahead. Some of the incumbent step-downs were due to the pursuit of a new job; in other cases, fresh initiatives dictated change. More from WWD At Shoe Carnival Inc., W. Kerry Jackson last September was named executive vice pre ...

Core Viewpoint - Amazon's stock has seen a significant decline following its fourth-quarter earnings report, trading approximately 23% below its all-time highs, with a price-to-earnings ratio of 25.8, nearing its lowest valuation in recent history [1]. Financial Performance - Amazon's revenue exceeded expectations in the fourth quarter, with notable growth in the Amazon Web Services (AWS) segment. However, the company's projected capital spending of $200 billion for 2026 raised concerns among investors, especially given that its operating cash flow for 2025 was $139.5 billion, reflecting a 17% increase from the previous year [2]. - There is a possibility that Amazon may report negative free cash flow in 2026, prompting conservative investors to withdraw [2]. Management Insights - AWS CEO Matt Garman reassured investors that the significant capital expenditure should not be a cause for concern, suggesting that they should be optimistic about the spending [3]. - Garman anticipates a capacity constraint for AWS for the next few years, indicating that demand will outstrip supply, which could lead to increased sales for Amazon [4]. Strategic Investment - If Garman's predictions hold true, the $200 billion investment could be beneficial for Amazon, and further investment may be warranted [5]. - Historical context shows that Amazon's previous investments in its e-commerce infrastructure, which initially reduced profitability, ultimately established a strong competitive advantage, with the e-commerce division reporting $35 billion in operating income last year, a 23% year-over-year increase [6]. - The AWS segment has also outperformed, generating $129 billion in revenue last year, an 18% increase, and $45 billion in operating income. If Garman's forecast is accurate, Amazon's investment in AI computing power could allow it to maintain pricing power in the market [7].

Apple (NASDAQ: AAPL) is posting strong growth these days. Revenue climbed 15.7% year over year in Q1 2026 (ended Dec. 27). Credit goes to robust demand for the iPhone 17 lineup. However, delayed updates to Siri and greater regulatory scrutiny are currently pressuring shares. 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 » Should you buy ...

Company Overview - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is an oilfield services company that provides drilling and completion services to oil and natural gas exploration and production companies [2][3] - As of February 13, 2026, Patterson-UTI Energy, Inc. stock closed at $8.10 per share, with a market capitalization of $3.075 billion [2] Performance Summary - In the fourth quarter of 2025, Patterson-UTI Energy, Inc. experienced a one-month return of 13.29%, but its shares are down 9.19% over the past twelve months [2] - The position in Patterson-UTI Energy, Inc. was liquidated due to a weakening energy market outlook, which negatively impacted its fundamental performance [3] Investment Insights - The company is not included in the list of 30 Most Popular Stocks Among Hedge Funds, with 42 hedge fund portfolios holding Patterson-UTI Energy, Inc. at the end of the third quarter, unchanged from the previous quarter [3] - While acknowledging the potential of Patterson-UTI Energy, Inc. as an investment, the company believes that certain AI stocks present greater upside potential and carry less downside risk [3]