Meridian Funds, managed by ArrowMark Partners, released its fourth-quarter 2025 investor letter for “Meridian Hedged Equity Fund”. A copy of the letter can be downloaded here. U.S. equity markets experienced a quarter supported by optimism about potential monetary easing and caution regarding economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October, which improved expectations for financial conditions. However, market sentiment c ...

Lamb Weston is a global leader in frozen potato products, serving both retail and foodservice markets with a diversified brand portfolio.What happenedAccording to an SEC filing dated Feb. 13, 2026, Liberty One Investment Management, LLC reduced its position in Lamb Weston (LW 0.93%) by 544,473 shares during the fourth quarter of 2025. The estimated transaction value is approximately $32.04 million, calculated using the average closing price for the period. The fund reported holding 416,166 shares at quarter ...

Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) produces, distributes, and markets frozen potato products. Valued at $6.9 billion by market cap, the company offers fries, oven roasted potatoes, puffs, chips, slices, and prepared potato products. Shares of this french fry giant have underperformed the broader market over the past year. LW has declined 13% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.8%. However, in 2026, LW stock is up 18.9%,surpassing SPX’s margina ...

Core Insights - Small cap stocks have been outperforming large cap stocks since November, with a focus on undervalued small cap stocks as potential investment opportunities [1] Group 1: Lamb Weston - Lamb Weston is North America's largest frozen potato producer, specializing in French fries for restaurants [2] - Global frozen potato demand grew at a rate of 5% per year before the pandemic, with expectations for a return to high growth supported by favorable market conditions [3] - Lamb Weston is assigned a narrow economic moat rating due to cost advantages and strong customer relationships, with a stock valuation of $80 per share [3] Group 2: Brown Foreman - Brown Foreman manufactures premium distilled spirits, including the well-known Jack Daniels whiskey and bourbon brands like Woodford Reserve and Old Forester [4] - Recent results have been impacted by demand weakness in North America and Europe, but brand strength and innovation are expected to drive annual sales growth of 3% over the next decade [5] - The stock is valued at $37 per share based on its strong brand portfolio [5]

Group 1 - Lamb Weston Holdings, Inc. granted 317,647 restricted stock units and options covering an aggregate of 1,117,346 shares to Jan Craps as part of his hiring as Executive Chair on February 6, 2026 [1] - The grant includes 300,000 restricted stock units as a one-for-one match on Mr. Craps' personal investment in Lamb Weston shares, with vesting scheduled for February 6, 2029 [1] - The options consist of 750,000 shares with an exercise price of $50.12, 128,571 shares at $60.00, 128,571 shares at $75.00, and 110,204 shares at $85.00, expiring on February 6, 2031 [1] Group 2 - The awards were granted under the employment inducement exemption of the NYSE's Listed Company Manual Rule 303A.08, necessitating public announcement [2] - Lamb Weston is a leading supplier of frozen potato products, known for innovation and simplifying back-of-house management for customers [3] - The company has been in the industry for 75 years, focusing on customer partnerships and product possibilities [3]

Core Insights - Lamb Weston has appointed Jan Craps as executive chair and Jim Gray as CFO to enhance company performance and strategy execution [1][2][5] - The company has faced profit pressures due to declining restaurant traffic and criticism from activist investor Jana Partners [2][3] - Lamb Weston aims to achieve significant cost savings and has set financial forecasts for the upcoming fiscal year [4][6] Leadership Changes - Jan Craps, with over 20 years of experience at AB InBev, will focus on board leadership, M&A, governance, and long-term strategy [1][2] - Jim Gray, a former PepsiCo executive, has been appointed as the new CFO to support financial management [2][5] Financial Performance - For the fiscal year ending May 25, net income was reported at $357.2 million, a 51% decrease from the previous year, while adjusted net income fell 35% to $478.6 million [5] - In the first half of the new financial year, net sales increased by 1% to $3.27 billion, with reported profits rising 38% to $126.4 million, but adjusted profits declined by 8% to $199.7 million [6] - The company forecasts net sales for fiscal 2026 to be between $6.35 billion and $6.55 billion, with adjusted EBITDA projected at $1.00 billion to $1.20 billion [6] Strategic Initiatives - Lamb Weston has initiated a "Focus to Win" strategy aimed at achieving at least $250 million in savings to enhance profits and cash flow [4] - The company is prioritizing market execution, customer partnerships, and innovation to drive shareholder returns [5][7]

Core Viewpoint - Lamb Weston (LW) presents a strong turnaround opportunity following a significant investment cycle, with the stock currently trading near conservative expectations and previous levels [1]. Company Analysis - The company has undergone a substantial investment cycle, which is expected to yield positive results in the near future [1]. - The current stock price reflects conservative market expectations, indicating potential for growth as the company continues its recovery [1]. Industry Context - The analysis is part of a broader research effort that includes various sectors such as commodities, technology, and emerging markets, showcasing the analyst's diverse expertise [1].

Core Viewpoint - Douglas Lane & Associates sold 65,461 shares of Lamb Weston Holdings for an estimated $3.85 million, reflecting a strategic move in response to market conditions and portfolio management [2][3][11] Company Overview - Lamb Weston Holdings generates revenue primarily through sales of frozen potato products, with a total revenue of $6.47 billion and a net income of $392.30 million [5][9] - The company has a dividend yield of 3.5% and its shares were priced at $44.32 as of January 21, 2026 [5] Recent Performance - In the latest quarter, Lamb Weston reported a 1% year-over-year increase in net sales to $1.62 billion, with net income turning positive at $62.1 million compared to a loss of $36.1 million a year earlier [11] - The company reiterated its full-year guidance, targeting sales between $6.35 billion and $6.55 billion, and adjusted EBITDA of up to $1.20 billion, alongside a 3% increase in quarterly dividends [11] Market Position - As of January 21, shares of Lamb Weston were down 27.5% over the past year, significantly underperforming the S&P 500 by 41.14 percentage points [4][11] - The decline in share price is attributed to pricing pressure, customer concessions, and uneven international utilization, impacting market sentiment [12] Holdings and Transactions - Following the sale, Douglas Lane held 1,213,884 shares of Lamb Weston valued at $50.85 million, with the position's value decreasing by $23.45 million over the period due to both sales and price changes [3][7]

Core Viewpoint - The sentiment around Lamb Weston Holdings (LW) has shifted positively, leading to a reassessment of its investment potential after a previously held "hold" rating due to lack of visible upside in the near term [1] Company Analysis - Lamb Weston Holdings was previously rated as a "hold" in late 2024, indicating no immediate growth prospects were identified [1] - The company is recognized for its long-term growth potential, suggesting that it may be undervalued and could present a buying opportunity [1]

Core Viewpoint - The sentiment around Lamb Weston Holdings (LW) has shifted positively, leading to a reassessment of its investment potential after a previously held "hold" rating due to lack of visible upside in the near term [1] Company Analysis - Lamb Weston Holdings was previously rated as a "hold" in late 2024, indicating no immediate growth prospects were identified [1] - The company is recognized for its long-term growth potential, aligning with value investing principles [1] Investment Strategy - The investment approach emphasizes acquiring quality companies at a discount to their intrinsic value and maintaining them for long-term earnings and shareholder returns [1]