Constellation Software (CNSWF) announced that Lumine Group (LMGIF), through one of its wholly-owned subsidiaries, has completed the purchase of Synchronoss Technologies (SNCR). Synchronoss has served global operators for more than twenty years. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today’s best-performing stocks on TipRanks >> Read More on SNCR: Disclaimer & DisclosureReport an Issue ...

Core Viewpoint - Capital Planning LLC has initiated a new position in the Akre Focus ETF, acquiring 114,952 shares valued at $7.45 million, indicating a strategic investment move in a concentrated fund [1][2]. Group 1: Investment Details - The new position in the Akre Focus ETF represents 2.1% of Capital Planning's reportable 13F assets under management [3]. - As of January 23, the price of AKRE shares was $62.64, reflecting an approximate 11% decline from the fund's listing in October [3]. - The Akre Focus ETF has a market capitalization of $9.8 billion [4]. Group 2: ETF Overview - The Akre Focus ETF employs a disciplined, fundamentals-driven strategy to select companies with durable competitive advantages and proven management teams [6]. - The fund maintains a concentrated portfolio, focusing on business quality and growth potential to generate long-term value for investors [6][9]. - The fund has a 0.98% expense ratio and has delivered 15.5% annualized returns over three years on a NAV basis [11]. Group 3: Portfolio Composition - The ETF primarily comprises US equities, including common and preferred stocks, warrants, options, and equity-like instruments such as partnership interests and REITs [9]. - As of late January, the top holdings included Mastercard, Brookfield, Constellation Software, Visa, and Moody's, which together account for about 50% of the portfolio [11]. - The fund's strategy appears to accept more variance in exchange for differentiated outcomes, as it adds a concentrated strategy to its predominantly broad index fund and factor ETF assets [10][12].

Core Insights - S.A. Mason has initiated a new position in the Akre Focus ETF, purchasing 45,209 shares for approximately $2.96 million as of December 31 [1][2] - The Akre Focus ETF employs a focused investment strategy targeting companies with sustainable competitive advantages and strong management, aiming for long-term growth [6][9] - The ETF's price as of January 29 is $61.15, reflecting a 10% decline over the past year, contrasting with a 15% gain for the S&P 500 [3][10] Company Overview - The Akre Focus ETF has a market capitalization of $9.14 billion and operates within the financial services sector, specifically in asset management [4] - The fund focuses on high-quality U.S. equities and equity-like instruments, including preferred stocks and REITs, with a disciplined approach to valuation and portfolio turnover [9] Investment Strategy - The ETF prioritizes investments in businesses with proven management teams and attractive reinvestment opportunities, aiming to deliver consistent risk-adjusted returns [6][9] - The portfolio is concentrated, with top holdings including Mastercard, Visa, and Moody's, designed to reinvest at high incremental returns over long cycles [11] Performance Context - Since its launch in October, the Akre Focus ETF has underperformed, falling about 10%, while the S&P 500 has gained roughly 1% during the same period [10] - The concentrated strategy of the ETF is intended to complement broader exposure to mega-cap tech and index funds, suggesting a long-term investment perspective [12]

Core Insights - Lighthouse Wealth Management Inc. initiated a new position in the Akre Focus ETF (NYSE:AKRE) by acquiring 277,954 shares valued at $18.21 million during the fourth quarter [2][3][7] - The new position represents 12.44% of Lighthouse's 13F reportable assets under management, indicating a significant commitment to this ETF [4][7] ETF Overview - The Akre Focus ETF has a market capitalization of $9.8 billion and is categorized under the Financial Services sector, specifically in Asset Management [5] - As of the last market close, shares of AKRE were priced at $64.18 [5] Investment Strategy - The Akre Focus ETF offers a diversified portfolio that includes U.S. equities, common and preferred stocks, warrants, options, convertibles, REITs, and select foreign securities [9] - The ETF employs an actively managed strategy focusing on high-quality businesses with strong shareholder returns and reinvestment opportunities [10] - The fund aims for long-term capital appreciation through a concentrated portfolio of high-conviction holdings, typically maintaining around 10 core positions that constitute about 70% of total assets [12] Historical Context - The Akre Focus ETF is a successor to a long-running mutual fund established in 2009, which transitioned to an ETF format to enhance tax efficiency and transparency while maintaining its investment strategy [11] - The portfolio includes top-weighted companies such as Mastercard, Brookfield, Constellation Software, KKR, and Visa, selected for their durable returns on capital and management quality [12] Portfolio Positioning - Lighthouse's investment in the Akre Focus ETF complements its broader market exposure through other ETFs like QQQ, suggesting that Akre serves as a high-conviction counterweight rather than a direct market substitute [13]

Performance Overview - The Akre Focus ETF's fourth quarter 2025 performance was -2.80%, underperforming the S&P 500 Total Return, which was 2.66% [2] - For the trailing 12-month period ending December 31, 2025, the ETF returned 1.23%, compared to 17.88% for the S&P 500 Total Return [2] Market Context - 2025 exhibited a significant performance disparity between the S&P 500 and the S&P 500 Quality Index, the largest since 1999, with a difference of 445 basis points [5] - The S&P 500's gains were largely driven by "Magnificent 7" mega-cap stocks, which rose nearly 25% in aggregate during 2025, contributing to over half of the S&P 500's return over the past three years [3] Historical Comparison - The performance disparity in 2025 mirrors the market conditions of 1999, where the S&P 500 benefitted from the inclusion of internet companies that did not meet quality markers [4] - From 1998 to 2025, the S&P 500 Quality Index had an annualized return of 10.2%, compared to 8.2% for the S&P 500, illustrating the long-term benefits of quality investing [6] Portfolio Insights - The portfolio faced drawdowns in several holdings, including Constellation Software (down 22.00%), Roper Technologies (down 13.84%), and CCC Intelligent Solutions (down 32.23%), primarily due to valuation multiple compression linked to AI concerns [8] - The narrative surrounding AI has favored tool providers over users, but the company believes that established software businesses will ultimately benefit from AI advancements [9] Investment Philosophy - The company emphasizes a long-term investment approach, focusing on businesses with durable competitive advantages and strong fundamentals, despite short-term market pressures [12] - The strategy involves maintaining cash for high-return opportunities rather than a pro-rata distribution across existing positions, which is a common practice among ETFs [14][15] Sector and Holdings - As of December 31, 2025, the top five holdings included Mastercard (13.3%), Brookfield Corp. (11.2%), and Constellation Software (10.2%) [26] - The sector weightings were heavily concentrated in Financials (56.1%) and Information Technology (20.6%), with cash and equivalents making up 3.1% of the fund [26]

Core Insights - The Akre Focus ETF targets high-quality U.S. companies with strong reinvestment strategies and disciplined portfolio oversight [1][5] - JBR Co Financial Management initiated a new position in the Akre Focus ETF, acquiring 108,793 shares valued at approximately $7.13 million [2][3] Investment Position - The new position represents 2.98% of JBR Co's 13F reportable assets under management (AUM) as of December 31 [3] - As of the latest pricing, AKRE shares are valued at $66.00 [3][4] ETF Overview - The Akre Focus ETF has a market capitalization of $9.97 billion and operates within the financial services sector, specifically in asset management [4] - The ETF emphasizes a concentrated portfolio focusing on business quality, management integrity, and capital reinvestment strength [5][9] Investment Strategy - The fund's strategy involves identifying U.S. companies with sustainable competitive advantages and attractive growth prospects, while also allowing for investments in select foreign securities and alternative equity instruments [5][9] - The Akre Focus ETF recently transitioned from a mutual fund to an ETF format, bringing approximately $10 billion in assets, aimed at improving tax efficiency and transparency [9][10] Market Trends - The initiation of a position in the Akre Focus ETF indicates a growing comfort among investors with actively managed ETFs that differ from traditional index-based products [6][10] - The ETF serves as a quality anchor in investment portfolios, suggesting a broader trend of utilizing ETF formats for high-conviction strategies previously held in mutual funds [10]

Core Insights - The article discusses the investment strategy of Right Tail, emphasizing a long-term approach focused on high-quality businesses rather than chasing short-term trends like artificial intelligence [4][19]. Performance Overview - Since its inception in May 2022, Right Tail's investments have increased significantly, with an initial $1 million growing to approximately $1.36 million under performance fees and $1.39 million under management fees [5]. - The portfolio's value is projected to grow to about $4.75 million in 10 years and $16 million in 20 years at a 13% annual compounding rate, or to approximately $3 million in 10 years and $6.5 million in 20 years at an 8% rate [6]. Market Comparison - In 2025, Right Tail's portfolio increased by approximately 0.34% before fees, lagging behind the S&P 500's 17.8% and the S&P 500 Equal Weight Index's 11.2% [7]. - Over a longer timeframe, Right Tail accounts have increased between 36% and 39%, which is significantly lower than the S&P 500's 79% increase [9]. Market Dynamics - The S&P 500 is increasingly concentrated, with the "Magnificent 7" companies representing 35-40% of the index, leading to a shift towards a large-cap growth index rather than a diversified one [10]. - The S&P 500 Equal Weight Index provides a different perspective, showing how most companies are performing amidst the AI-driven market enthusiasm [11]. Investment Philosophy - Right Tail's strategy focuses on investing in businesses with durable advantages and predictable earnings, aligning with the belief that markets reward such companies over time [19]. - The current market environment is seen as favorable for long-term active management, as passive investing has led to concentration in a few high-performing companies [21]. Specific Holdings - Alphabet (GOOG, GOOGL) has been a significant holding for Right Tail, with the company viewed as undervalued despite its strong performance in the AI sector [16][17]. - Other holdings include Constellation Software (CSU:CA), which is trading at low valuations despite strong fundamentals, and a coal royalty business expected to return substantial cash to shareholders [20]. Learning and Adaptation - The past year has reinforced the importance of patience and continual learning in investment practices, with a focus on improving investment processes over time [23].

Core Thesis - Roper Technologies, Inc. is viewed positively due to its high-margin, recurring software business model and disciplined acquisition strategy, which positions it well for long-term growth and profitability [2][4]. Group 1: Business Model and Strategy - Roper Technologies focuses on acquiring high-quality, asset-light, cash-generative companies in niche markets, similar to Constellation Software but targeting larger, established vertical market software businesses [2]. - The company operates a decentralized model, granting autonomy to individual business units while centralizing cash management at the corporate level [2][3]. - A lean headquarters team strategically deploys centralized cash primarily for acquisitions and R&D, driving organic growth within existing businesses [3]. Group 2: Financial Performance and Valuation - Following a significant decline in share price after a recent earnings report, Roper is now considered attractively valued, presenting a compelling entry point for investors [3][5]. - The company's disciplined capital allocation has allowed it to maintain strong cash flow and margin resilience, continuously expanding its portfolio of high-quality businesses [3][4]. - The market may be underestimating the value of Roper's well-managed, cash-generative businesses, making the current valuation appealing relative to its fundamentals and growth prospects [4]. Group 3: Growth Potential - Roper's combination of autonomous operations and strategic acquisitions supports ongoing organic growth and enhances scale and profitability across its diversified portfolio [4]. - Investors benefit from both the organic growth of existing businesses and the optionality provided by future acquisitions, which have historically contributed to the company's success [4].

Core Insights - Bending Spoons has agreed to acquire Eventbrite for approximately $500 million, significantly lower than its $1.76 billion valuation at the time of its IPO in 2018 [1][5] - Eventbrite's revenue has stagnated, with audited annual revenue remaining flat at about $325 million for both fiscal years 2024 and 2023 [5] Company Overview - Eventbrite was co-founded in 2006 by Julia and Kevin Hartz, and Renaud Visage, raising around $330 million in venture capital from notable investors like Sequoia Capital and Tiger Global Management during its private years [2] - Bending Spoons operates differently from traditional private equity firms, focusing on acquiring companies to hold indefinitely, aiming to make them profitable through cost-cutting, price increases, and new product features [3] Acquisition Details - The acquisition price represents about 1.7 times Eventbrite's trailing twelve months revenue of $295 million [5] - Eventbrite stockholders will receive $4.50 in cash per share, which is an 81% premium over the previous day's closing price of $2.48 [5] Industry Context - Other investors are also pursuing a similar strategy of acquiring and revitalizing stalled software firms, often referred to as "venture zombie" companies, including firms like Constellation Software and Curious [4] - Andrew Dumont, CEO of Curious, indicated that their strategy involves purchasing quality companies at low prices and quickly reviving them to achieve profit margins of 20% to 30% [4]

Core Insights - Fair Isaac Corporation (FICO) reported fourth-quarter fiscal 2025 non-GAAP earnings of $7.74 per share, exceeding the Zacks Consensus Estimate by 5.45% and reflecting an 18.3% year-over-year increase [1] - Revenues reached $515.8 million, surpassing the consensus mark by 0.78% and increasing 13.6% year over year, with contributions from the Americas (87%), EMEA (8%), and Asia Pacific (5%) [1] - Scores, which account for 60.4% of total revenues, rose 25% year over year to $311.6 million [1] Revenue Breakdown - Software revenues, including analytics and digital decisioning technology, declined 0.2% year over year to $204.2 million [2] - Software Annual Recurring Revenues (ARR) increased 4% year over year, driven by a 16% growth in platform ARR, while non-platform ARR declined by 2% [3] - On-premises and SaaS Software, making up 35.4% of revenues, increased 0.4% year over year to $182.4 million [3] - Professional services revenues, accounting for 4.2% of total revenues, decreased 4.8% year over year to $21.8 million [3] Scoring Solutions Performance - Business-to-business (B2B) scoring solutions revenues increased 29% year over year, primarily due to higher unit prices and increased mortgage originations [4] - Business-to-consumer (B2C) scoring solutions revenues rose 8% year over year, driven by growth in myFICO.com and indirect channel partners [4] - Mortgage originations revenues surged 55% year over year, while auto originations revenues increased by 24% [5] Operating Metrics - Research and development expenses as a percentage of revenues increased by 10 basis points year over year to 9.9% [6] - Selling, general, and administrative expenses as a percentage of revenues decreased by 270 basis points year over year to 24.3% [6] - Non-GAAP Operating margin improved to 54% in the fourth quarter of fiscal 2025, compared to 52% in the same quarter of the previous year [6] Financial Performance - Adjusted EBITDA rose 18.3% year over year to $286.6 million, with an adjusted EBITDA margin of 55.6% compared to 53.4% in the prior year [7] - As of September 30, 2025, FICO had $134 million in cash and cash equivalents, with total debt at $3.06 billion [8] - Cash flow from operations was $223.6 million in the fourth quarter, down from $286.2 million in the prior quarter, while free cash flow was $210.8 million compared to $276.2 million previously [8] Future Guidance - FICO anticipates fiscal 2026 revenues of $2.35 billion and non-GAAP earnings of $38.17 per share [9][10]