Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund’s Investor Class fund ARTQX returned 0.97%, Advisor Class fund APDQX posted a return of 0.98%, and Institutional Class fund APHQX returned 0.97%, compared to a 6.18% return for the Russell Midcap Value Index. Equity markets continued their rally in the third quarter as investors overlooked tariff concerns, driv ...

Core Viewpoint - Artisan Mid Cap Value Fund's performance in Q3 2025 was below the benchmark, with returns of approximately 0.97% compared to the Russell Midcap Value Index's 6.18% return, attributed to broader market conditions and specific sector challenges [1] Fund Performance - The Investor Class fund ARTQX returned 0.97%, Advisor Class fund APDQX returned 0.98%, and Institutional Class fund APHQX returned 0.97% in Q3 2025 [1] - The overall equity markets rallied, driven by strong corporate earnings, rising AI capital expenditures, and expectations of economic support from US fiscal policy and lower interest rates [1] Company Focus: Align Technology, Inc. - Align Technology, Inc. (NASDAQ:ALGN) experienced a one-month return of -1.05% and a 52-week loss of 28.71%, with a market capitalization of $11.31 billion as of January 2, 2026 [2] - The company is recognized for its Invisalign clear aligners and iTero intraoral scanners, but faced underperformance in Q3 due to high expectations and disappointing quarterly results [3] Sector Analysis - The health care sector was a significant source of underperformance for the fund, with Align Technology being one of the major detractors alongside Centene and Baxter International [3] - The health care sector has struggled due to policy uncertainty, leading to reduced investor interest [3] Investment Strategy - The fund initiated a position in Align Technology at $150 per share, following a market sell-off due to tariff concerns, viewing it as a high-quality business with long-term potential [3] - Despite recent challenges, the company is seen as a market leader in clear aligners, with expectations that it can continue to capture market share in the orthodontics space [3]

Market Overview - Asia-Pacific markets exhibited mixed trading patterns as the final trading week of the year commenced, with Japan's Nikkei 225 declining by 0.55% and the Topix falling by 0.26% [1] - In contrast, South Korea's Kospi increased by 0.62%, and the Kosdaq index saw a rise of 0.19% [1] - Hong Kong's Hang Seng index futures were slightly lower at 25,810 compared to the last close of 25,818.93 [1] Silver Market Insights - Spot silver prices reached a record high of over $80 per ounce, driven by speculative buying and ongoing supply tightness [2] - Sprott Asset Management noted that the silver rally this year is attributed to a depletion of freely traded inventory, which has intensified price movements as demand rises [2] - The favorable macro-outlook for 2026, characterized by lower interest rates and a potentially weaker U.S. dollar, is enhancing the attractiveness of hard assets like silver [3]

Key Takeaways Vistra is positioned to benefit from falling rates through lower borrowing costs and rising power demand.VST plans to invest $2.2B in 2026 to expand nuclear, solar and battery storage capacity.VST's 64.4% ROE far exceeds the industry average of 9.9%, signaling strong capital efficiency.Vistra Corp. (VST) is well-positioned to benefit from a declining interest rate environment, particularly as a competitive power producer with a diversified generation portfolio spanning nuclear, natural gas, re ...

Core Insights - The shipping industry is essential for global trade but faces challenges from inflation, tariffs, and supply-chain disruptions [1] - The outlook for the shipping sector is improving as macroeconomic conditions become more favorable heading into 2026 [2] Industry Overview - The shipping industry is considered the backbone of the world economy, handling the bulk of global trade [1] - Despite current challenges, the macro backdrop is showing signs of improvement, particularly in the United States where inflation is decreasing [3] Economic Factors - Easing monetary policies and lower global interest rates are creating favorable financing conditions for shipping companies [4] - Lower interest rates can stimulate consumer spending and business investment, boosting demand for shipping services [6] Shipping Stocks Performance - Companies like Seanergy Maritime Holdings (SHIP), Global Ship Lease (GSL), and KNOT Offshore Partners LP (KNOP) are positioned to benefit from the improving economic conditions [2][9] - The consensus estimate for 2026 earnings indicates significant growth: SHIP at 32.7%, GSL at 3.1%, and KNOP at 85.1% [10] Specific Company Insights - Seanergy Maritime is a leading Capesize ship-owner with a strong track record of exceeding earnings estimates, projecting a 32.7% increase in 2026 earnings [14] - Global Ship Lease operates a diversified fleet of containerships and has consistently outperformed earnings estimates, with a projected 3.1% increase in 2026 earnings [15] - KNOT Offshore specializes in shuttle tankers for crude oil transport and has shown exceptional earnings performance, with an expected 85.1% increase in 2026 earnings [16] Market Trends - The demand for capsize bulk carriers is expected to rise due to strong iron ore and bauxite demand, supported by the inauguration of Guinea's Simandou iron ore mine [7][8]

Over the past couple of months, I have been quite vocal about how the fears of lower interest rates and their effects on the BDC earnings have been overblown.Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the developm ...

Core Viewpoint - President Trump is advocating for lower interest rates and the appointment of a new Federal Reserve chair, but recent divisions indicate that achieving one may not ensure the other [1] Group 1 - The call for lower interest rates reflects concerns about economic growth and inflation [1] - The potential appointment of a new Fed chair could lead to shifts in monetary policy, impacting market expectations [1] - Current divisions within the Federal Reserve suggest that consensus on interest rate changes may be difficult to achieve [1]

Market Overview - The U.S. stock market is approaching its all-time high following the Federal Reserve's interest rate cut aimed at supporting the job market, as anticipated by Wall Street [1][2] - The S&P 500 increased by 0.4%, the Dow Jones Industrial Average rose by 386 points (0.8%), and the Nasdaq composite saw a slight increase of 0.1% [1] Federal Reserve Actions - The Federal Reserve cut its main interest rate by a quarter of a percentage point and projected one more cut by the end of 2026, consistent with previous forecasts [3][4] - There is a division among Fed officials regarding the necessity of further rate cuts, with some expressing concerns about persistent inflation above the 2% target [4][5] Company Performance - GE Vernova's stock surged by 15.4% after the company raised its revenue forecast for 2028, doubled its dividend, and expanded its stock buyback program [6] - Palantir Technologies' shares rose by 3.9% following the announcement that the U.S. Navy will utilize its AI technology in a $448 million program [6] - Cracker Barrel Old Country Store's stock increased by 4% after reporting better-than-expected quarterly results, despite lowering its revenue forecast for the fiscal year [7] - GameStop's stock declined by 3.7% after reporting weaker-than-expected revenue, although its profit exceeded forecasts [8]

Core Viewpoint - Lower interest rates could eliminate the necessity for a proposed 50-year mortgage aimed at enhancing housing affordability, as stated by Joseph Lavorgna, a counselor to the U.S. Treasury Secretary [1][2]. Group 1: Mortgage Proposal - The 50-year mortgage proposal originated from the Federal Housing Finance Agency to reduce monthly mortgage payments [2]. - The proposal is not officially dismissed, but its relevance is contingent on the current interest rate environment [2]. Group 2: Interest Rates Impact - High interest rates, attributed to the Federal Reserve's cautious approach, are currently problematic for the housing market [2]. - Lavorgna expressed that a reduction in interest rates by the Federal Reserve would negate the need for a 50-year mortgage, although he noted the pace of rate reductions has been slow and uneven [3].

Group 1 - Kevin Hassett is emerging as the leading candidate for the next Federal Reserve Chair, according to reports [1][2] - Hassett is viewed as a close ally of President Trump and is expected to align with Trump's approach to lowering interest rates [2][5] - The nomination is not final until publicly announced, as Trump is known for making surprise policy decisions [3] Group 2 - Current Fed Chair Jerome Powell has faced criticism from Trump for not cutting interest rates quickly enough, with Trump advocating for rates to drop to 1% or 2% from the current 3.75% to 4.00% [5] - Hassett has expressed a preference for lower interest rates and supported the recent 25-basis-point rate cut by the Fed [6] - Hassett has a background in cryptocurrency, having served on Coinbase's advisory council and disclosed a stake in the company worth at least $1 million [6] Group 3 - Prediction markets show a 52% to 55% chance of Hassett being nominated as the next Fed Chair [4] - Coinbase shares experienced a slight increase in after-hours trading, reflecting investor interest in the company [7]