Market Performance - US stocks gained over 8% in Q3 2025, as measured by the Russell 3000 Index, with small-cap stocks rising more than 12% [1] - Large-cap stocks increased by about 8%, while mid-cap stocks saw a gain of 5% [1] Diamond Hill Mid Cap Strategy Performance - The strategy underperformed the Russell Midcap Index in Q3 2025, returning 4.49% net compared to 5.33% for the Index [1] Revvity, Inc. Overview - Revvity, Inc. (NYSE:RVTY) is a health sciences solutions, technologies, and services company with a market capitalization of $11.309 billion [2] - The stock closed at $97.43 per share on December 30, 2025, with a one-month return of -5.16% and a 52-week loss of 12.70% [2] Investment Insights on Revvity, Inc. - The company initiated several new positions in Q3 2025, including Revvity, Inc., due to its long-term growth outlook [3] - Revvity, Inc. reported revenue of $699 million in Q3 2025, resulting in 1% organic growth [4] - Despite acknowledging Revvity's potential, the company believes certain AI stocks offer greater upside potential and less downside risk [4] Hedge Fund Interest - Revvity, Inc. was held by 22 hedge fund portfolios at the end of Q3 2025, down from 27 in the previous quarter [4]

Market Performance - US stocks gained over 8% in the third quarter of 2025, as measured by the Russell 3000 Index, with small-cap stocks rising more than 12% [1] - Large-cap stocks increased by about 8%, while mid-cap stocks saw a gain of 5% [1] Diamond Hill Mid Cap Strategy Performance - The strategy underperformed the Russell Midcap Index in Q3 2025, returning 4.49% net compared to 5.33% for the Index [1] The Cooper Companies, Inc. Overview - The Cooper Companies, Inc. (NASDAQ:COO) manufactures and markets contact lenses through its CooperVision and CooperSurgical segments [2] - The one-month return for The Cooper Companies, Inc. was 8.74%, but its shares lost 10.29% of their value over the last 52 weeks [2] - As of December 30, 2025, the stock closed at $82.47 per share, with a market capitalization of $16.396 billion [2] Investment Insights - The Diamond Hill Mid Cap Strategy initiated several new positions in Q3 2025, including The Cooper Companies, Inc. [3] - Despite the overall market rise, the company is viewed as undervalued relative to its long-term growth outlook [3] - The Cooper Companies, Inc. had consolidated revenues up 4.6% year over year to a quarterly record of $1.065 billion in Q4 2025 [4] - The number of hedge fund portfolios holding The Cooper Companies, Inc. increased from 48 to 56 in the third quarter [4]

Core Points - Wells Fargo continues its long-standing support as the presenting sponsor of the Thurgood Marshall College Fund's Leadership Institute, which focuses on professional development for students from historically Black colleges and universities (HBCUs) [1][3] - The 2025 Leadership Institute will occur from October 1 to October 4 in Washington, D.C., with over 500 students from 44 HBCUs expected to attend [2] - The Leadership Institute aims to enhance economic mobility for HBCU students and diversify the future workforce in corporate America, connecting participants with Fortune 500 companies [3][4] Company Involvement - Wells Fargo has been a partner of TMCF for over a decade, emphasizing its commitment to preparing the next generation of workforce talent through leadership development [3] - The Leadership Institute is described as a launchpad for future leaders, providing HBCU students with access to meaningful career opportunities [3][4] - The event has a selective acceptance rate of just above 15%, with participants averaging a cumulative GPA of 3.7 [4] Event Highlights - The Anniversary Gala, TMCF's largest fundraising event, will honor individuals and organizations that support HBCUs and promote economic mobility [5][6] - This year's honorees include Blue Meridian Partners and The Leonsis Family Foundation, with Jim Shelton receiving the CEO Impact Award [7] - The Gala will feature award-winning actor Larenz Tate as host and three-time Grammy-nominated artist Luke James providing entertainment [8] Organizational Background - The Thurgood Marshall College Fund, established in 1987, is the largest organization representing the Black college community, supporting nearly 80% of students attending Black colleges and universities [10] - TMCF provides scholarships, capacity building, and strategic partnerships to enhance educational opportunities for its members [10] - Wells Fargo, with approximately $1.9 trillion in assets, serves a significant portion of U.S. households and small businesses, focusing on social impact initiatives [11]

Core Insights - AllianceBernstein L.P. and AllianceBernstein Holding L.P. reported a preliminary increase in assets under management (AUM) to $803 billion in May 2025, up from $781 billion at the end of April, representing a 2.8% month-over-month growth driven by market appreciation, despite net outflows [1][4] Summary by Category Assets Under Management - AUM increased to $803 billion as of May 31, 2025, from $781 billion at April 30, 2025 [1][4] - The increase was attributed to market appreciation, which was partially offset by net outflows [1] Breakdown by Channel - Private wealth saw slight inflows, while institutional and retail channels experienced outflows [1] - The total AUM breakdown includes: - Total Equity: $332 billion, up from $315 billion - Total Fixed Income: $296 billion, up from $295 billion - Alternatives/Multi-Asset: $175 billion, up from $171 billion [3][4] Detailed AUM Composition - Actively Managed Equity: $263 billion - Passive Equity: $69 billion - Total Fixed Income: $296 billion, with Taxable Fixed Income at $207 billion and Tax-Exempt at $79 billion - Alternatives/Multi-Asset: $175 billion [3][4]

Financial Data and Key Metrics Changes - Non-GAAP operating earnings for Q1 2025 were $421 million or $1.30 per share, down 7% year over year on a per share basis [5][19] - Adjusted for notable items, non-GAAP operating EPS was $1.35, a decrease of 3% compared to the prior year [5][19] - GAAP net income was $63 million, lower than non-GAAP operating earnings due to non-economic hedging impacts [20] - Reported book value per share excluding AOCI was $27.62, while adjusted book value per share including ownership in AB at market value was $39.96 [20][21] Business Line Data and Key Metrics Changes - Protection Solutions segment reported a loss of $17 million due to high mortality claims, which were approximately $80 million above expectations [6][22] - Retirement businesses produced $1.6 billion of net inflows, driven by the RILEH franchise and institutional offerings [6][25] - Wealth management business had $2 billion of advisory net inflows, with advisor productivity up 8% and a 12% organic growth rate [6][25] - AllianceBernstein (AB) reported positive net flows across all distribution channels, with total active net inflows of $2.7 billion [7][26] Market Data and Key Metrics Changes - The company experienced strong net flows in individual retirement, with $1.4 billion in net flows and an 8% organic growth rate over the last twelve months [55] - Group Retirement had positive net inflows of $192 million, while Wealth Management advisory net flows were $2 billion [25][26] - AB's institutional pipeline increased materially by several billion dollars in Q1, indicating confidence in future flows despite market volatility [60] Company Strategy and Development Direction - The company plans to close a reinsurance transaction with RGA, which will free up over $2 billion of capital and enhance focus on retirement, asset management, and wealth management [9][34] - The strategy includes increasing ownership in AllianceBernstein to 69%, capturing more economic benefits and synergies between the two firms [9][35] - The company emphasizes the importance of providing retirement and investment advice, especially during periods of market volatility, to meet the growing demand for secure income solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macro volatility due to a strong balance sheet and predictable cash flows [10][37] - The company highlighted favorable demographic trends, with 4 million Americans turning 65 each year, increasing the demand for retirement solutions [12] - Management noted that periods of market volatility enhance the need for the advice and solutions offered, positioning the company well for future growth [11][37] Other Important Information - The company returned $335 million to shareholders in Q1, representing an 80% payout ratio, and plans to increase the quarterly cash dividend by 13% [8][28] - The company has $2.2 billion of cash and liquid assets at holdings, up from $1.8 billion at the end of the previous quarter [28] - The company expects to close the life reinsurance transaction in mid-2025, which will provide significant financial flexibility [34] Q&A Session Summary Question: Size of extraordinary dividend from $2 billion proceeds - Management expects to take an extraordinary dividend of about $1 billion later in the year after the reinsurance transaction [40][41] Question: Demand for products amid market volatility - Management reported robust sales in April, driven by demographic trends and heightened market volatility [44][46] Question: Impact of elevated expenses and lower fee days on earnings - Elevated expenses had a pretax impact of about $10 million on individual retirement earnings, but growth in net investment margin is expected [48][49] Question: Leverage ratio management - Management indicated that any incremental buybacks would likely be accompanied by debt repayment to maintain leverage ratios [50][51] Question: Outlook for cash flow guidance - Management remains confident in the $1.6 billion to $1.7 billion cash flow guidance despite current market conditions [90][91] Question: Changes in ownership thoughts for AllianceBernstein - Management has no immediate plans to increase ownership beyond 69% but is pleased with the current synergies [92][93]

Financial Performance - AllianceBernstein reported GAAP net income of $0.67 per unit and adjusted net income of $0.80 per unit for Q1 2025, with a cash distribution of $0.80 per unit [1][42] - Total net revenues for Q1 2025 were $1.08 billion, a decrease of 2.1% from Q1 2024 and a 14.1% decrease from Q4 2024 [13][14] - Adjusted net revenues were $838 million, down 5.2% year-over-year and down 14% sequentially [21][22] - Operating income for Q1 2025 was $236 million, a 2% decrease from Q1 2024 and a 26% decrease from Q4 2024 [17][41] - The adjusted operating income increased by 6% year-over-year to $283 million, but decreased by 20% sequentially [25] Assets Under Management (AUM) - As of March 31, 2025, total AUM was $784.5 billion, reflecting a 3.4% increase from the previous year but a 1% decrease from the end of Q4 2024 [7][42] - Average AUM for Q1 2025 was $797.5 billion, up 7.9% from Q1 2024 [7][42] - Institutional AUM was $324.1 billion, with net inflows of $0.4 billion, while retail AUM also saw net inflows of $0.9 billion [8][10] Market Trends and Client Activity - The company experienced $2.7 billion in active net inflows across all global distribution channels in Q1 2025, driven by strong institutional deployments into private alternative strategies [2][3] - Retail channel gross sales exceeded $25 billion for the third consecutive quarter, with a consistent annualized growth rate of 19% in tax-exempt fixed income [3] - Institutional flows returned to positive territory, with a pipeline of awarded but unfunded mandates increasing to $13.5 billion [9] Expense Management - Operating expenses for Q1 2025 were $844 million, a decrease of 2% from Q1 2024, primarily due to lower employee compensation and benefits [15][16] - Adjusted operating expenses also decreased by 10% year-over-year to $555 million [23][24] Distribution and Shareholder Returns - The cash distribution per unit of $0.80 is scheduled for payment on May 22, 2025, to holders of record as of May 5, 2025 [4][42] - The adjusted earnings per unit and distributions to unitholders rose by 10% compared to the previous year [2]