Core Insights - The investment environment in 2025 was challenging, with foreign equity markets achieving their best returns in over a decade, while the International Growth Composite Portfolio finished the year essentially flat due to a market preference for cyclically sensitive businesses [8][11]. Portfolio Performance - The International Growth Composite Portfolio's performance was -2.21% for the quarter and 0.68% year-to-date, compared to the MSCI ACWI (ex-USA) which returned 5.05% for the quarter and 32.39% year-to-date [5]. - Top contributors to the Portfolio's performance included Tokyo Electron, ASML, and Shopify, while the largest detractors were Monday.com, MercadoLibre, and SAP [13][17]. Company-Specific Insights - **Tokyo Electron**: A leading player in semiconductor manufacturing equipment, expected to grow revenues at a high single-digit rate and increase operating margins from 25% in 2024 to 35% in the medium term, driving mid-teens earnings growth [14]. - **ASML**: Benefiting from investor optimism around AI, as its equipment is essential for advanced chips, which are critical for AI applications [16]. - **Monday.com**: Despite strong results, the stock sold off due to concerns over near-term growth slowdown, but revenue growth is expected to sustain over 20% as it expands its market reach [18]. - **MercadoLibre**: The largest e-commerce platform in Latin America, experiencing a decline in stock price due to a slight decrease in operating margin while investing in growth initiatives [19]. - **SAP**: Despite cloud revenue growth exceeding expectations, the stock faced pressure due to market conditions, but is viewed as resilient with a strong market position and high recurring revenues [20]. Portfolio Activity - New position established in **Nintendo**, which is expected to see significant growth following the release of the Switch 2, with anticipated earnings growth of 30% annually over the next few years [23]. - Positions in **Teleperformance** and **Siemens Healthineers** were eliminated due to ongoing business challenges, reallocating funds to invest in Nintendo and Tencent [25][26]. Market Outlook - The outlook for the Portfolio remains positive, with expectations of benefiting from structural trends such as technology shifts and growth in emerging markets like India [27].

Group 1 - European stock markets experienced a slight increase, with the Stoxx Europe 600 index rising by 0.2%, driven by mining stocks following the upward trend in commodity prices [1][4] - Utility stocks also performed well, while the travel and leisure sector faced pressure due to flight disruptions in the US and the Middle East, along with cautious earnings guidance from Ryanair [1][4] - Investors are closely monitoring upcoming earnings reports to assess consumer demand resilience, especially after President Trump canceled tariffs related to Greenland on European countries, which helped the European benchmark index recover some losses [1][4] Group 2 - The Federal Reserve is expected to maintain interest rates, with market focus shifting to the appointment of the new Fed Chair, which Trump is anticipated to announce soon [3][6] - Individual stock movements include a 6.1% increase in Nasdaq, as Morgan Stanley upgraded the rating of the Finnish energy group to "overweight," indicating further upside potential after a strong rise in 2025 [3][6] - Conversely, Teleperformance saw a 7.7% decline in stock price after CIC Market Solutions downgraded its rating and target price [3][6]

Core Insights - The article discusses the importance of fundamental, income-oriented, long-term analysis conducted by buy-side hedge professionals across various sectors in developed markets globally [1]. Group 1 - The focus is on the analytical approach of hedge professionals who are engaged in evaluating investment opportunities based on fundamental analysis [1]. - The article encourages discussions and sharing of ideas among professionals in the investment community [1].

Core Insights - Global equity markets experienced significant growth in Q3, with the S&P 500 rising 8.12% for the quarter and 14.83% year-to-date, while the MSCI EAFE Index increased by 4.77% for the quarter and 25.14% year-to-date [2][3] Market Performance - The S&P 500 achieved back-to-back annual returns of 26% and 25% in 2023 and 2024, respectively, with valuation metrics like the "Buffett Indicator" and CAPE-Shiller P/E at or near record highs [2] - Non-US equities, particularly European stocks, outperformed the S&P 500 year-to-date, benefiting from a weaker US dollar and a resurgence in value recognition [3][11] Fund Performance - Tweedy, Browne Funds reported year-to-date returns ranging from 15.98% for the Value Fund to 23.17% for the International Value Fund II, with the Worldwide High Dividend Yield Value Fund outperforming its benchmark [3][5] - The International Value Fund II had a return of 23.17%, trailing its benchmark, the unhedged MSCI EAFE Index, by 197 basis points [3] Portfolio Activity - The company made strategic adjustments to its portfolio, trimming or selling holdings that reached estimated value and adding to companies perceived as attractively priced, such as Berkeley Group Holdings and Breedon Group [8] - New positions were initiated in Santec Holdings and additional investments were made in companies like Dentium and Azelis Group, reflecting a focus on growth potential and reasonable valuations [8] Outlook - The company is optimistic about the resurgence of non-US equity returns and believes its funds are well-positioned for future market conditions, whether they favor non-US equities or face broader market challenges [11]

European stocks settled lower on Thursday as investors reacted to a slew of earnings announcements and economic data, in addition to digesting the Bank of England's interest rate decision. Weak cues from Wall Street where stocks tumbled amid concerns about stretched valuations in the tech sector weighed as well on investor sentiment.The BoE decided to hold the interest rate in a tight vote and signaled that the rate will follow a gradual downward path if disinflation process continues.BoE's Monetary Policy ...

Market Overview - European stocks closed higher, with the pan-European Stoxx 600 gaining more than 1% [2] - The U.K.'s FTSE 100 climbed 0.52%, Germany's DAX surged 1.8%, and France's CAC 40 gained 0.39% [2] - Defense stocks led the gains amid geopolitical concerns, particularly regarding Israel and Hamas [1] Company Performance - BAE Systems, Rio Tinto, Prudential, Burberry Group, Informa, Relx, St. James's Place, and Intertek Group closed notably higher [4] - Rheinmetall surged 5.8% and Infineon gained about 5% in the German market [5] - Kering climbed nearly 5% after agreeing to sell its beauty division to L'Oréal for €4 billion [5] - Airbus Group gained more than 1.5% after receiving an order for 30 aircraft from India's IndiGo [6] - BNP Paribas tumbled nearly 8% after a US jury held the bank responsible for damages related to Sudan's regime [7] Economic Indicators - Germany's producer prices decreased 1.7% year-on-year in September, following a 2.2% drop in August [7] - Month-on-month, producer prices slid 0.1%, contrary to expectations of a 0.1% increase [8]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Group 1: Market Overview - French stocks are in positive territory, boosted by the Federal Reserve's 25-basis point interest rate cut and indications of further easing this year [1] - The benchmark CAC 40 index increased by 87.75 points or 1.13%, reaching 7,874.73 [1] Group 2: Company Performance - STMicroElectronics shares rose by 4.3%, Legrand by 3.7%, and Capgemini by 3.2% [2] - Schneider Electric's stock advanced nearly 3%, while other companies like ArcelorMittal, Dassault Systemes, and LVMH saw gains between 1.3% and 2.7% [2] - Michelin's stock decreased by approximately 1.2%, with Eurofins Scientific, Pernod Ricard, and Danone down by 0.4% to 0.7% [2] Group 3: Economic Indicators - The euro area current account surplus fell to EUR 27.7 billion in July from EUR 35.8 billion in June, and down from EUR 31.6 billion in the same period last year [3] - The surplus on goods trade increased to EUR 25 billion from EUR 23 billion, while the surplus on services decreased to EUR 12 billion from EUR 16 billion [3] - Primary income halved to EUR 7 billion from EUR 14 billion, and the shortfall in secondary income narrowed to EUR 16 billion from EUR 17 billion [4] - Over the twelve months to July, the current account surplus was EUR 315 billion or 2% of GDP, down from EUR 394 billion or 2.6% of GDP in the same period last year [4]

Euronext will replace Teleperformance on France’s blue-chip CAC 40 index, the Paris bourse operator said, reflecting the diverging fortunes of the two companies https://t.co/7qMFWn5ZN5 ...

Market Overview - France's CAC 40 index opened modestly higher, reaching a peak of 7,823.34 before settling at 7,778.94, up 29.55 points or 0.38% [2] - The market sentiment remains steady following the appointment of Sébastien Lecornu as the new Prime Minister of France and optimism regarding a potential larger interest rate cut by the Federal Reserve [1] Company Performance - Thales shares increased by more than 3.5% [3] - EssilorLuxottica saw a rise of nearly 3% [3] - Schneider Electric gained 2.2% [3] - Legrand's stock was up nearly 2% [3] - Other companies such as ArcelorMittal, Bouygues, Credit Agricole, Airbus, and Societe Generale experienced gains between 1% to 1.5% [3] - Dassault Systemes, AXA, Vinci, Safran, Vivendi, and Veolia Environment also reported modest gains [3] - Pernod Ricard's stock declined by about 2.5% [3] - Accor, STMicroElectronics, Teleperformance, and Carrefour saw declines between 1.2% to 2% [3] - Kering, Stellantis, Edenred, and L'Oreal also faced notable decreases [3]