Core Insights - There is a structural shift in corporate leadership with more women taking on top roles, leading to improved performance in innovation, operational agility, and shareholder returns [2] - Women-led organizations are demonstrating disciplined execution and better capital allocation, reinforcing investor confidence in sustainable business models [2] Group 1: Women Entrepreneurs and Business Growth - The number of women-owned firms grew 44% faster than male-owned businesses from 2019 to 2024, indicating a significant impact on the U.S. business landscape [4] - 56% of women entrepreneurs reported higher revenues in 2025 compared to 2024, with 66% expecting growth in 2026 despite macroeconomic uncertainty [4] - Women entrepreneurs are increasingly accessing growth capital, with 20% utilizing debt and 32% equity funding in the past year [4] Group 2: Funding Challenges - Women-led startups receive only about 2% of venture capital funding in the U.S. and Europe, highlighting a significant funding disparity [5] - Biases in the investment community contribute to this disparity, with female entrepreneurs often facing risk-focused questions compared to opportunity-focused questions for male entrepreneurs [5] Group 3: Investment Opportunities in Women-Led Companies - Companies like The Estee Lauder Companies Inc. (EL), Commercial Metals Company (CMC), Arista Networks, Inc. (ANET), and FuelCell Energy, Inc. (FCEL) exemplify strong leadership and strategic vision, making them attractive investment opportunities [7] - Estee Lauder Companies reported net sales of $3.48 billion, up 4% year over year, with adjusted earnings per share rising to 32 cents from 14 cents [12] - Commercial Metals Company reported net earnings of $177.3 million on net sales of about $2.1 billion, marking a significant improvement from a net loss in the prior-year period [14] - Arista Networks reported revenue of approximately $2.308 billion, up about 27.5% year over year, with non-GAAP net income of $962.3 million [17] Group 4: Leadership Contributions - Maria Black's leadership at Automatic Data Processing has driven cloud-based HCM innovation and steady revenue growth [3] - Jody Absher at Commercial Metals Company has strengthened governance and legal strategy, contributing to the company's operational success [13][15] - Jayshree V. Ullal's leadership at Arista has transformed the company into a leader in cloud networking, with a focus on innovation and strategic partnerships [16][19] - Karen A. Farrell at FuelCell Energy is enhancing the company's human capital framework, crucial for scaling operations in the clean energy sector [20][22]

Group 1 - Automatic Data Processing, Inc. (ADP) announced a new stock buyback authorization of $6 billion, replacing the previous $5 billion authorization from 2022 [1] - As of December 31, 2025, ADP had approximately 403 million common shares outstanding [1] Group 2 - ADP has over 75 years of experience in HR and payroll solutions, serving more than 1.1 million clients across 140+ countries [2] - The company focuses on innovation and expertise to address business challenges, offering tools for small businesses to integrated platforms for global enterprises [2] - ADP emphasizes its commitment to people through AI-driven insights and innovative solutions in HR, Talent, Time Management, Benefits, Compliance, and Payroll [2]

Group 1 - The NER Pulse indicates that U.S. private employers added an average of 11,750 jobs per week for the four weeks ending December 20, 2025, showing an increase from the previous week [1] - The job gains have shown a fluctuating trend, with the previous week's average at 11,000 jobs and the week before that at 8,750 jobs [1] - The NER Pulse is based on a four-week moving average and is seasonally adjusted, with a two-week lag for more accurate employment trend estimates [1] Group 2 - The NER Pulse is published every Tuesday at 8:15 a.m. ET, except during the release of the monthly National Employment Report [2] - The next NER Pulse is scheduled for release on January 20, 2026 [2] - The ADP National Employment Report and NER Pulse are produced in collaboration with the Stanford Digital Economy Lab [3]

Group 1 - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - The fund's underperformance is attributed to index concentration, growth of assets in Index Funds, and weakness in the dollar [1] - Since inception, the fund has outperformed the index by 1.7% per annum [1] Group 2 - Automatic Data Processing, Inc. (NASDAQ:ADP) stock closed at $266.02 on January 9, 2026, with a one-month return of -0.03% and a 52-week loss of 7.26% [2] - The market capitalization of Automatic Data Processing, Inc. (NASDAQ:ADP) is $107.762 billion [2] - The company has faced challenges due to weakness in the US jobs market, and there are concerns regarding the conservativeness of management's future revenue guidance [3] Group 3 - Automatic Data Processing, Inc. (NASDAQ:ADP) was held by 57 hedge fund portfolios at the end of Q3 2025, a decrease from 61 in the previous quarter [4] - While Automatic Data Processing, Inc. (NASDAQ:ADP) is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Core Insights - The article emphasizes the importance of understanding different payment schedules for employees, which can vary from weekly to monthly [1] Group 1: Investment Insights - Scott Kaufman, known as Treading Softly, has over a decade of experience in the financial sector and focuses on providing actionable insights into high-quality dividend growth and undervalued investment opportunities [1] - The goal is to achieve a robust total return through cash dividends and strong capital gains [1]

Core Insights - The Fundsmith Equity Fund reported a total return of +0.8% for 2025, underperforming the MSCI World Index which rose by +12.8% [4][7]. - Since inception on November 1, 2010, the Fund has outperformed the Index by 1.7% per annum with a Sortino Ratio of 0.75, indicating less downside volatility compared to the Index [7][8]. - The Fund is ranked as the third best performer in the Investment Association Global sector of 155 funds since inception, with a return 322 percentage points above the sector average [8]. Performance Analysis - The Fund's performance in 2025 was impacted by three main issues: index concentration, the growth of assets in index funds, and dollar weakness [9][10][36]. - The top ten stocks in the S&P 500 accounted for 39% of its value and contributed 50% of its total return in USD by the end of 2025, highlighting significant market concentration [13][10]. - The rise of index funds has led to a momentum strategy that disproportionately benefits large-cap stocks, making it challenging for active funds to compete without holding these stocks [17][20]. Market Dynamics - The US dollar weakened against the pound from approximately $1.25/GBP to $1.35/GBP during 2025, affecting the GBP value of the Fund as most companies are US-listed [36][40]. - The price of gold reached a 50-year high of $4,319 per ounce, reflecting concerns about dollar strength and market conditions [39]. Portfolio Composition - The Fund's portfolio turnover was low at 12.7%, with a total cost of investment (TCI) of 1.06%, indicating a focus on minimizing trading costs [70][72]. - The weighted average free cash flow yield of the portfolio increased from 3.1% to 3.7% during 2025, suggesting improved valuation relative to the S&P 500 [68][69]. Stock Contributions - The top five detractors from the Fund's performance included Novo Nordisk, Automatic Data Processing, Church & Dwight, Coloplast, and Fortinet, with Novo Nordisk facing significant challenges in its market [45][46]. - Conversely, the top contributors were Alphabet, IDEXX, Philip Morris, Meta Platforms, and Microsoft, with Alphabet making its first appearance among the top contributors [51][52]. Investment Strategy - The Fund maintains a strategy focused on investing in high-quality companies with predictable growth and adequate returns on capital, avoiding momentum-driven investments [41][42]. - The Fund's management emphasizes the importance of understanding the underlying business performance and maintaining a long-term perspective on investments [60][79].

Core Insights - Dividend Kings are companies that have increased their dividends annually for at least 50 years, with only 56 stocks achieving this status globally as of late 2025 [2] - Companies that raise dividends at a rate slower than inflation effectively reduce shareholder value, exemplified by Dover's recent dividend increase lagging behind inflation [3] - The best Dividend Kings not only keep pace with inflation but also provide substantial dividend hikes, with three notable examples increasing dividends by 10% annually [4] Company Highlights - **Automatic Data Processing (ADP)**: This company has achieved its 50th consecutive dividend increase in 2024, with a recent 10% increase and an overall 83% rise since 2021, significantly outpacing the 20% inflation during the same period [5] - ADP has returned $12 billion through share repurchases since 2015 while paying out $15 billion in dividends, maintaining a sustainable payout ratio of 61% [6] - The rarity of stocks achieving Dividend King status and consistently beating inflation highlights the strength of companies like ADP, which are expected to continue robust dividend increases due to strong fundamentals and market position [7]

Core Insights - Automatic Data Processing, Inc. (ADP) has a market capitalization of $102.3 billion and provides cloud-based human capital management (HCM) and business outsourcing solutions to help organizations manage their workforce efficiently [1] Financial Performance - ADP is expected to announce its second-quarter results on January 28, with analysts predicting an adjusted profit of $2.58 per share, reflecting a 9.8% increase from $2.35 per share in the same quarter last year [2] - For FY2026, ADP's adjusted EPS is projected to be $10.93, a 9.2% increase from $10.01 in 2025, and is expected to rise further to $11.95 per share in fiscal 2027, marking a 9.3% year-over-year growth [3] Stock Performance - Over the past 52 weeks, ADP's stock price has decreased by 9.4%, significantly underperforming the Technology Select Sector SPDR Fund's (XLK) 25.3% increase and the S&P 500 Index's 17.1% returns [4] - The underperformance is attributed to ADP's defensive, slower-growth profile during a period when investors have favored higher-beta, faster-growing technology and AI-linked stocks [5] Analyst Ratings - Analysts maintain a consensus "Hold" rating for ADP, with 17 analysts covering the stock, including two "Strong Buys," 13 "Holds," one "Moderate Sell," and one "Strong Sell" [6] - The mean price target for ADP is $290.93, indicating an 11.4% upside potential from current price levels [6]

Group 1 - The core economic data released this week indicates a partial recovery in the U.S. job market at the end of last year, but it has not fully overcome challenges. The Federal Reserve's interest rate futures pricing suggests the first rate cut could occur in the second quarter if the non-farm payroll data falls short of market expectations [1] - In December 2025, U.S. companies added 41,000 jobs, which is below the expected 48,000, indicating a weak labor market. Employee wage growth has also declined, with a year-on-year increase of 4.4%, matching the lowest level since the pandemic [2] - Job growth is concentrated in a few sectors, primarily healthcare, hospitality, and restaurants, highlighting the weakness of the labor market over the past year. The current labor market is characterized by low hiring and low layoffs, with no clear signs of a significant rebound in hiring [3] Group 2 - The U.S. Labor Department's JOLTS report shows a decline in job vacancies and hiring in November, with job openings dropping from nearly 7.5 million to about 7.1 million, and the hiring rate decreasing from 3.4% to 3.2% [4] - The upcoming non-farm payroll data, set to be released on January 9, is expected to be a key driver for market direction. In November, the U.S. non-farm payrolls increased by 64,000, but the unemployment rate rose to 4.6%, the highest in over four years [5] - The Federal Reserve's economic outlook for 2026 is generally optimistic, predicting accelerated economic growth and a stable unemployment rate, although concerns remain about the labor market's cooling [6] Group 3 - There are significant risks in the market, as inflation improvement has stalled and the labor market shows signs of weakness. The slowing job growth and declining wage pressure indicate a challenging economic environment [7] - The current labor market is not in an ideal state of equilibrium, and the "low hiring, low layoffs" model may not be sustainable. If consumer spending decreases, it could lead to a wave of layoffs [7] - The weakening labor market provides a rationale for the Federal Reserve to adjust its rate cut expectations, and if the non-farm report is too weak, it may signal more severe economic risks than currently anticipated [7]

Core Insights - The ADP National Employment Report for December 2025 indicates a moderate recovery in the U.S. job market, with private sector non-farm employment increasing by 41,000 jobs, reversing a decline of 29,000 jobs in November [1][3] - The report highlights that job growth is concentrated in the service sector, particularly in education, healthcare, leisure, and hospitality, while some sectors like professional services and information services experienced job losses [1][2] Employment Growth - Private sector job growth in December 2025 was primarily driven by small and medium-sized enterprises, with small businesses (1-49 employees) adding 9,000 jobs and medium-sized businesses (50-499 employees) adding 34,000 jobs, while large enterprises (500+ employees) only added 2,000 jobs [2] - Regional disparities are evident, with the South and Northeast adding 54,000 and 40,000 jobs respectively, while the West saw a significant decline of 61,000 jobs, particularly in the Pacific region [2] Wage Growth - Wage growth remains moderate, with average annual salary increases for employees staying in their current positions at 4.4%, while those changing jobs saw an increase of 6.6%, indicating a cooling labor market [2][3] Economic Indicators - The ADP report serves as a key forward-looking indicator of the U.S. private sector job market, based on anonymous weekly payroll data from over 26 million employees across more than 500,000 businesses, providing insights into employment dynamics across industries, company sizes, and regions [3] - Following the ADP report, U.S. Treasury yields continued to decline, with the 10-year Treasury yield dropping by 3.9 basis points to 4.14%, reflecting market reactions to the employment data [3][4] Market Expectations - The upcoming non-farm payroll data, expected to show an increase of 73,000 jobs for December 2025, is anticipated to confirm the trend of an orderly cooling labor market, which may reinforce expectations for the Federal Reserve to continue its rate-cutting cycle in the first half of the year [4]