Core Insights - The investment landscape for 2026 is perceived as offering deeper and wider opportunities despite high market valuations and indices [2] - Current equity markets are characterized by greed and impatience, leading to a focus on short-term performance rather than long-term value [3] - Investor psychology is shifting towards perceived risk aversion, which may actually be driving them away from areas with genuine mispricing [4] Performance and Net Asset Value - Dynasty Trust reported a quarterly return of -2.29% and a net asset value per unit of $1.3030 as of December 31, 2025 [5] - Over the rolling 12 months, the return was 8.19%, and over two years, it was 12.93% [5] - The inception return of Dynasty Trust stands at 36.74% [5] Market Dynamics - The S&P 500 index saw a significant concentration of performance in its top 10 stocks, which now account for 39.2% of the index [6] - Smaller companies and controlled entities have recently fallen out of favor, impacting the performance of Dynasty Trust [6] Currency Impact - The Australian dollar's fluctuations against the euro and US dollar affected returns, with a 5.5% decline against the euro and a 6% rise against the US dollar in 2025 [7] - The overall impact of currency changes on performance was minimal, costing only 11 basis points [7] Positive Contributors to Performance - Seven securities contributed positively to Dynasty Trust, with Sportradar (SRAD) showing a 68% gain and Catapult International a 54% gain [8] - Other notable contributors included Viel et Cie (48% gain) and Avolta (30% gain) [8] Negative Contributors to Performance - Six securities detracted from returns, with Novo Nordisk (NVO) down 28% due to drug pricing uncertainties [9] - Other significant detractors included Bolloré (19% decline) and EuroEyes International (24% decline) [9] Investment Strategy - The company emphasizes investing in controlled public companies, which historically have shown long-term benefits [11] - The focus is on avoiding dilution of investment skills by steering clear of extraneous factors like stock or currency hedging [11] Market Trends - The technology sector has seen a significant rerating, while other sectors have experienced derating from already pessimistic valuations [13] - A bifurcation in the market is evident, with technology stocks performing well while other sectors lag behind [17] Valuation Insights - Many European holding companies are trading at significant discounts to NAV, with an average discount increasing from 30% to 30.6% over three years [14] - The high pricing of privately held technology companies has widened discounts for European firms, leading to investor skepticism [19] Specific Company Analysis: Hansa Investment Company - Hansa trades at a 44% discount to NAV, with a pro-forma cash exposure of approximately 35% of NAV [32] - The company has initiated share repurchases post-merger with Ocean Wilson, which is expected to enhance NAV [38] Specific Company Analysis: D'leteren - D'leteren is facing challenges due to increased leverage and cyclical pressures, impacting reported profits [41] - The company has initiated a €100 million stock buyback program to manage its capital structure [44] - The valuation of D'leteren's stake in Belron is under scrutiny, with significant skepticism regarding private equity valuations [60]

Core Viewpoint - Virtu Financial, Inc. (VIRT) has experienced a significant decline of 23.8% over the past six months, underperforming the S&P 500's 14.5% rise and the broader industry decline of 7.6% [1][2] Performance Analysis - The stock's decline is attributed to rising costs, expectations of reduced retail trading activity, and uncertainty regarding market-making revenues [1] - Peer companies have also faced declines, with Tradeweb Markets Inc. (TW) dropping 26.3% and CME Group Inc. (CME) showing a slight gain of 0.4% [2] Valuation Insights - Virtu is currently valued at a forward P/E of 8.70X, which is below its five-year median of 9.26X and the industry average of 23.82X [5] - The valuation gap indicates that much of the near-term risk may already be priced in, suggesting limited downside relative to potential upside for investors [6] Growth Forecasts - The Zacks Consensus Estimate projects EPS growth of 41.7% in 2025, with revenues expected to increase by 25.9% to approximately $2.01 billion [9] - Virtu has consistently beaten earnings estimates in the past four quarters, with an average surprise of 15.6% [9] Growth Drivers - The Execution Services segment is a key growth driver, with products like POSIT Alert and advanced trading analytics being increasingly utilized by institutional clients [10] - The ongoing electronification of markets and rising demand for sophisticated execution tools are beneficial for Virtu [11] Margin Improvement - Cost-control initiatives have led to significant margin improvements, with adjusted net margins rising to 35.9% in 2024 from 25.4% in 2023 [12] Capital Returns - The stock offers a 2.8% dividend yield, higher than the industry average of 1.5%, with management committed to a quarterly dividend of 24 cents per share [13] - Share buybacks amounted to approximately $210 million in 2023 and $172.2 million in 2024, with $302.8 million remaining under buyback authorization as of September 30, 2025 [13] Analyst Outlook - Analysts see a potential upside of 27.7% for Virtu, as the stock trades below the average analyst price target of $43.14 [14] Conclusion - Following a sharp correction, Virtu Financial is positioned for a rebound, trading at a valuation discount despite strong earnings execution and supportive growth forecasts [16] - The company’s diversified trading model, expanding execution services, and high return on invested capital (ROIC) contribute to its resilience [16][17]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by officers and directors of Virtu Financial, Inc. which may affect shareholder rights [1] Group 1: Legal Actions and Shareholder Rights - Long-term shareholders of Virtu may seek corporate governance reforms, return of funds, court-approved financial incentives, or other benefits [2] - Shareholder involvement is crucial for improving company policies and enhancing shareholder value through better oversight [3] Group 2: Firm's Background and Services - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, recovering millions for defrauded investors [4]

NEW YORK, Dec. 18, 2025 (GLOBE NEWSWIRE) -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Virtu Financial, Inc. (NYSE: VIRT) breached their fiduciary duties to shareholders. If you currently own Virtu stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your ...

Core Thesis - Virtu Financial, Inc. is viewed as an attractive investment opportunity following a significant 26% decline in its stock price over the past three months, attributed to the retirement of its CEO and low EPS estimates for Q3 [2][3] Valuation Metrics - As of December 2nd, Virtu's share price was $34.32, with trailing and forward P/E ratios of 7.60 and 8.63 respectively, indicating a low valuation [1] - The stock's P/E ratio is approximately 7x, close to a five-year low, suggesting that the market may have overreacted to recent events [2] Leadership and Management - The new CEO, previously the CTO, is well-acquainted with the company's proprietary algorithms, which positions him favorably to lead the firm [3] - Investor concerns are expected to diminish once the new CEO presents at the upcoming Q3 earnings report [3] Earnings Expectations - Analyst estimates for Q3 earnings are currently set at $0.95, but these may be overly conservative given robust trading volumes, particularly in retail trades, which could lead to actual EPS reaching around $1.40 [4] - The company has a strong history of shareholder returns, including a $0.96 annual dividend and significant stock buybacks, with a recent $300 million tender offer likely to enhance future value [4] Investment Outlook - On a mid-cycle basis, the P/E ratio stands at 8.1x, indicating deep undervaluation of the stock [5] - Near-term catalysts for the stock include acclimation to the new CEO, absence of large insider selling, potentially strong Q3 earnings, and a significant stock buyback in Q4 [5] - Overall, Virtu Financial is characterized as a low-risk, high-upside investment with multiple opportunities for re-rating [5]

NEW YORK, Dec 3 (Reuters) - Virtu Financial will pay a $2.5 million fine to settle U.S. Securities ​and Exchange Commission accusations the large market maker ‌improperly allowed almost all employees at its broker-dealer unit access to ‌confidential information about customers and their trades. The broker-dealer unit Virtu Americas, which according to the SEC handled about 25% of market orders from U.S. retail investors during the relevant ⁠period, did not ‌admit or deny wrongdoing, the SEC said on Wednes ...

Core Viewpoint - Virtu Financial reported strong Q3 earnings, with adjusted EPS of $1.05, beating estimates by 8.3% and showing a 28% year-over-year increase [3][4]. Financial Performance - Adjusted net trading income reached $467 million, up 20.4% year over year, surpassing consensus estimates by 11.2% [3][4]. - Revenues from commissions and technology services rose 17.4% year over year to $154.5 million, exceeding estimates [5]. - Interest and dividend income was $127.4 million, a 1.7% increase year over year, but fell short of estimates [5]. - Adjusted EBITDA climbed 24.7% year over year to $267.8 million, with an improved margin of 57.3% [6]. Expense Analysis - Total operating expenses increased 15.2% year over year to $644.8 million, driven by higher brokerage fees, employee compensation, and other costs [7]. Segment Performance - Market Making segment reported adjusted net trading income of $344.1 million, a 19.5% year-over-year increase, and revenues of $668 million, up 15.8% [8]. - Execution Services segment achieved adjusted net trading income of $122.9 million, a 22.8% increase year over year, with total revenues rising 22.9% to $154.5 million [9]. Financial Position - As of September 30, 2025, cash and cash equivalents were $707.9 million, down 18.9% from the end of 2024, while total assets increased to $21.3 billion [10]. - Long-term borrowings rose to $2 billion from $1.7 billion at the end of 2024, and total equity increased by 14.4% to $1.7 billion [10]. Shareholder Returns - The company repurchased 0.5 million shares for $20.9 million in Q3 2025, with a remaining buyback capacity of $302.8 million [12]. - A cash dividend of 24 cents per share was announced, payable on December 15, 2025 [12]. Market Outlook - Following the earnings release, consensus estimates have increased by 32.09%, indicating positive investor sentiment [13]. - Virtu Financial holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [15]. Industry Comparison - In the same industry, Synchrony reported a revenue increase of 2.4% year over year, with an EPS of $2.86 compared to $1.94 a year ago [16]. - Synchrony is expected to post earnings of $1.99 per share for the current quarter, reflecting a 4.2% year-over-year change [17].

Core Insights - Virtu Financial received recognition in seven categories at the 2025 TRADE Awards held in New York and London, highlighting its strong performance in the financial services sector [1][2]. Awards and Recognition - The company was awarded TCA Provider of the Year and Best Dark Pool Capabilities in London, and Best Customer Support & Consulting in New York [2]. - Virtu Triton, the company's multi-asset execution management system, was recognized for Best Market Access and Best Provider for both UK & Europe and North America [2]. Company Commitment and Leadership - Keith Casuccio, Global Head of Virtu Execution Services, emphasized the company's commitment to high-quality execution technology and client service globally, attributing the recognition to the hard work of the Algos, Analytics, and Triton teams [3]. Company Overview - Virtu Financial is a leading financial services firm that utilizes advanced technology to provide execution services, data, analytics, and connectivity products, delivering liquidity to global markets [4]. - The firm offers a comprehensive product suite that includes execution, liquidity sourcing, analytics, and broker-neutral, multi-dealer platforms, enabling clients to trade across hundreds of venues in over 50 countries and multiple asset classes [4].

Core Insights - Virtu Financial, Inc. has announced the recognition of Gabriella Gambino and Julie Feng at the Markets Media's Women in Finance Americas Awards, highlighting the company's commitment to diversity and excellence in the financial services industry [1][4] Group 1: Awards and Recognition - Gabriella Gambino received the Rising Star award for her contributions across equities analytics, business development, and fixed income sales, showcasing her versatility and strong communication skills [2] - Julie Feng was honored for Individual Achievement, recognized for her decade of experience and leadership in complex onboarding initiatives, which have enhanced client relationships and created new business opportunities [3] - The company also acknowledged Kelly Pratko, Kirra Peery, and Nicole Malloy, who were shortlisted for awards, reflecting their dedication and positive impact within the firm [4] Group 2: Company Overview - Virtu Financial is a leading provider of global, multi-asset financial services, utilizing advanced technology to deliver execution services, data, analytics, and connectivity products to clients [6] - The firm offers a comprehensive product suite that includes execution, liquidity sourcing, analytics, and broker-neutral platforms, enabling clients to trade across hundreds of venues in over 50 countries and various asset classes [6] - Virtu's integrated multi-asset analytics platform provides essential pre- and post-trade services, data products, and compliance tools that assist clients in investing, trading, and managing risk in global markets [6]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $824.8 million, an increase of 16.7% compared to $706.8 million for the same period in 2024 [253]. - Trading income, net accounted for 67% of total revenues for the nine months ended September 30, 2025, compared to 63% for the same period in 2024 [259]. - Net income for the three months ended September 30, 2025, was $149.1 million, representing a 25.3% increase from $119.0 million in the same period of 2024 [257]. - Basic earnings per share for the three months ended September 30, 2025, was $0.86, up from $0.65 in the same period of 2024 [257]. - Total revenue for the nine months ended September 30, 2025, was $1,771,839,000, a 38.5% increase from $1,278,487,000 in the same period of 2024 [287]. - Net income for the nine months ended September 30, 2025, was $631,662,000, a significant increase of 76.1% compared to $358,448,000 for the same period in 2024 [284]. - Adjusted Net Trading Income for Q3 2025 reached $467,015,000, up 20.4% from $388,032,000 in Q3 2024 [282]. - The company reported a GAAP net income margin of 18.1% for the three months ended September 30, 2025, compared to 16.8% in the same period of 2024 [255]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $644.8 million, an increase of 15.1% from $559.7 million in 2024 [255]. - Employee compensation and payroll taxes increased by $50.1 million, or 46.6%, to $157.7 million for the three months ended September 30, 2025, compared to $107.6 million for the same period in 2024 [300]. - Operating expenses increased by $311.2 million, or 19.4%, to $1,911.5 million for the nine months ended September 30, 2025 [318]. - Interest and dividends expense increased by $76.4 million, or 19.8%, to $462.2 million for the nine months ended September 30, 2025 [323]. Debt and Financing - The company reported a senior secured first lien term loan of $1,800.0 million, fully drawn on January 13, 2022, to repay previous debts and fund share repurchases [241]. - The company completed the offering of $500.0 million aggregate principal amount of 7.50% senior secured first lien notes due 2031 on June 21, 2024 [248]. - The Term B-2 Loans bear interest at a rate of 6.92% through November 2025, fixing interest payment obligations on $1,075.0 million of principal [247]. - The company entered into a two-year floating-to-fixed interest rate swap agreement for $1,525.0 million at a rate of 7.5% through November 2025 [348]. - As of September 30, 2025, the outstanding principal balance on broker-dealer facilities was $125.0 million, and short-term credit facilities amounted to approximately $123.2 million [344]. Market Segments and Services - The company operates in two segments: Market Making and Execution Services, with a focus on leveraging technology for competitive liquidity provision [236]. - The company provides liquidity across over 25,000 securities and financial instruments on more than 250 venues in 40 countries [237]. - The company’s execution services include algorithmic trading, portfolio trading, and matching client conditional orders, generating revenue through commissions and service fees [239]. - The company’s diversified product offerings include execution, liquidity sourcing, analytics, and broker-neutral platforms across multiple asset classes [231]. Technology and Operations - The company emphasizes the importance of technology in maintaining operational efficiency and enhancing market health [234]. - The company’s proprietary technology platform integrates directly with exchanges and liquidity centers, enabling scalable operations without significant incremental costs [233]. - The company utilizes proprietary risk management tools to monitor market risks continuously, including locking down trading strategies that exceed preset limits [406]. Tax and Compliance - The effective tax rate is subject to significant variation, influenced by pre-tax income, acquisitions, and changes in tax law, with an approximate effective tax rate of 24% applied for normalized calculations [275][279]. - The provision for income taxes was $30.9 million with an effective tax rate of 17.2% for the three months ended September 30, 2025, compared to $28.1 million and 19.1% for the same period in 2024 [310]. - The company is subject to tax receivable agreements that require payments equal to 85% of cash tax savings realized from favorable tax attributes [394]. Cash Flow and Liquidity - As of September 30, 2025, the company had $707.9 million in cash and cash equivalents, with borrowings under credit facilities totaling approximately $248.2 million [332]. - Net cash provided by operating activities was $9.0 million for the nine months ended September 30, 2025, a significant decrease from $207.5 million for the same period in 2024 [370]. - Future liquidity is expected to primarily come from cash flows from operating and financing activities [336]. Share Repurchase Program - The company has repurchased approximately 53.8 million shares for approximately $1,417.2 million since the inception of the share repurchase program, with $302.8 million remaining capacity for future purchases [374]. - The company’s share repurchase program has been extended through April 24, 2026, with total authorizations reaching $1,720 million [373].