Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. Equity indexes again posted record gains in the third quarter of 2025, with AI-themed stocks leading the market. AI Stocks led around 75% of the market returns in the quarter. In this environment, the fund delivered positive returns in the quarter but lagged behind the Russell 1000 Growth Index benchmark. The ...

Market Overview - The market has not experienced a 3% selloff in the past six months, leading to increased nervousness among investors [1][4] - The current low volatility is seen as typical for a bull market, similar to patterns observed in 2016 and 2020 [2][3] Bull Market Characteristics - The bull market is supported by four strong factors: seasonal trends, technical strength, earnings growth, and historical patterns [5][6] - November is noted as the strongest month of the year, contributing to positive market sentiment [6] Investment Opportunities - Regions Financial is highlighted as a strong investment due to its above-trend growth, superior net interest income, and solid yield of 4% [8][9] - Amgen is described as a "quiet giant" in biotech with strong cash flow and a promising pipeline in oncology and rheumatoid arthritis [10][11] - Vulcan Materials is positioned well for infrastructure spending, particularly in road reconstruction and aggregates, which are essential for construction [13][15]

Core Insights - Vulcan Materials Company has appointed Ronnie Pruitt as Chief Executive Officer, effective January 1, 2026, with Tom Hill transitioning to Executive Chairman of the Board [1][2][4] Leadership Transition - The leadership transition is part of a structured succession planning process aimed at maintaining the company's strategic direction as an aggregates-led business [3][4] - Tom Hill has expressed confidence in Ronnie Pruitt's ability to lead the company, highlighting his experience and commitment to the company's culture [3][4] Ronnie Pruitt's Background - Ronnie Pruitt has over three decades of experience in the building materials industry and has been with Vulcan since August 2021 [5][6] - As Chief Operating Officer, Pruitt has been instrumental in implementing Vulcan's Durable Growth strategy, focusing on enhancing core operations and expanding market reach [6][7] Company Overview - Vulcan Materials Company is the largest producer of construction aggregates in the United States, primarily dealing with crushed stone, sand, and gravel [9] - The company is also a significant producer of aggregates-based construction materials, including asphalt and ready-mixed concrete [9]

Core Insights - Vulcan Materials Company (NYSE:VMC) is gaining attention as a significant player in the AI investment landscape, with a focus on projects related to AI and data centers, amounting to $35 billion [1] - The company is recognized as the largest producer of construction aggregates in the US, benefiting from its oligopoly status, which allows for rational competition and consistent price increases above cost inflation [2] Group 1 - Analysts highlight Vulcan's exposure to AI and data center projects, indicating a strategic alignment with current technological trends [1] - The company has a substantial project pipeline valued at $35 billion, which is directly linked to AI and energy initiatives [1] - Macquarie Core Equity Fund notes Vulcan's ability to raise prices due to its market position, suggesting potential for increased profitability in the future [2] Group 2 - While Vulcan is seen as a promising investment, some analysts believe there are AI stocks with greater potential for higher returns and lower risk [2] - The company benefits from its oligopoly status, which enhances its competitive edge in the construction materials market [2]

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Core Points - Vulcan Materials Company will host its third quarter 2025 earnings conference call on October 30, 2025, at 9:00 a.m. CT [1] - Financial results will be released before the NYSE market opens on the same day [1] Company Overview - Vulcan Materials Company is the largest supplier of construction aggregates in the United States, primarily providing crushed stone, sand, and gravel [3] - The company is also a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete [3] - Vulcan is a member of the S&P 500 index and is headquartered in Birmingham, Alabama [3]

Market Overview - The market is experiencing a rebound despite concerns about overvaluation and risks related to inflation and labor weakness, as highlighted by JPAL's comments [1][2] - The AI trade remains strong, with continued positive performance from AI-related companies, indicating that this sector is still in its early stages of growth [3][2] Earnings and Market Sentiment - There is a lull in earnings reports, with significant companies like Costco and Nike reporting soon, leading to a quieter market period until bank earnings resume on October 14 [4][5] - Investors are advised to focus on fundamentals and technicals, tuning out the noise from political and market chatter [6] Investment Focus - The investment strategy includes a diversified approach, favoring sectors such as technology, industrials, financials, and select energy companies [7] - Vulcan Materials is highlighted as a strong investment choice due to its dominant position in the aggregates market, which is essential for construction [8][15] Company Performance - Vulcan Materials has successfully increased its pricing, raising the price per ton of aggregate by 55% over the last five years, despite facing some headwinds [13][12] - The company is well-positioned to benefit from upcoming infrastructure projects, particularly with the Space Force initiative in Alabama, which will require significant concrete supplies [9][14] Competitive Position - Vulcan Materials is recognized for its strong pricing power and high award-winning rate from municipalities, indicating a competitive edge in securing contracts [14][15] - Although Vulcan has underperformed compared to peers like Martin Marietta this year, its potential for future growth remains strong due to its market dominance [12][15]

All right, what do you make of the rebound. I mean, yesterday it seemed like the markets were kind of weighed down by some of those JPAL comments and also some questions about the AI trade. Why are we seeing the rebound this morning.Well, I think you're checking both boxes. First off, JPAL mentioning that markets might be overvalued as being like, uh, the the sky is blue, water's wet. We know nothing's cheap right now.There's not a lot of cheapness in the market, but that doesn't mean necessarily that we ca ...

Group 1: Market Overview - The US large-cap equity market experienced significant growth in Q2 2025, with the S&P 500® Index increasing by 10.94% [1] - The market's strength was attributed to reduced concerns over potential harsh tariffs from President Trump, as the administration paused tariff implementation [1] Group 2: Macquarie Core Equity Fund Performance - The Macquarie Core Equity Fund's Institutional Class achieved a return of 11.94%, outperforming the S&P 500 Index [1] - Sector selection contributed to 80% of the fund's relative performance, while individual security selection accounted for the remaining 20% [1] Group 3: Vulcan Materials Company (NYSE:VMC) Insights - Vulcan Materials Company is the largest producer of construction aggregates in the US, with a one-month return of 2.11% and a 52-week gain of 18.46% [2][3] - As of September 18, 2025, Vulcan's stock closed at $298.58 per share, with a market capitalization of $39.45 billion [2] - The company benefits from its oligopoly status in major markets, allowing for rational competition and consistent price increases above cost inflation, which is expected to enhance profitability in the coming years [3] Group 4: Hedge Fund Interest - Vulcan Materials Company was held by 59 hedge fund portfolios at the end of Q2 2025, an increase from 56 in the previous quarter [4] - Despite its potential, some analysts believe that certain AI stocks may offer greater upside potential and lower downside risk compared to Vulcan [4]

Financial Performance - Vulcan Materials Company has demonstrated strong EBITDA and free cash flow margins, leading to an upgrade in its Long-term Issuer Default Rating to BBB+ from BBB by Fitch Ratings [1][2] - The company's leverage levels improved to 2.2x from 2.6x following a $2.3 billion acquisition in 2024, with expectations to average between 2x and 2.5x in the coming years [3] - The EBITDA margin improved by 200 basis points in 2024, with further improvements expected between 100 and 150 basis points in 2025 due to strong pricing and operational efficiencies [3] Market Position - Vulcan Materials is recognized as one of the largest producers of construction aggregates in the United States, providing essential materials such as crushed stone, sand, and gravel [4] - The company has a diverse quarry network spanning 23 states, which contributes to its leading market position and substantial financial flexibility [2]