Core Insights - Heartland Advisors' "Heartland Value Fund" reported a 2.61% gain in Q4 2025, underperforming the Russell 2000® Value Index which returned 3.26% [1] - The fund's underperformance was primarily due to stock selection issues in the healthcare sector [1] - Small-cap stocks have shown significant performance improvements, nearly catching up to large caps, attributed to increased earnings and compelling valuations [1] Company Highlights - Alexander & Baldwin, Inc. (NYSE:ALEX) is a publicly traded real estate investment trust with a market capitalization of $1.508 billion and a share price of $20.73 as of January 12, 2026 [2] - The stock experienced a one-month return of -1.10% but gained 20.73% over the last 52 weeks [2] - Heartland Value Fund initiated a position in Alexander & Baldwin in summer 2024 to increase its real estate exposure, which was previously underweight compared to its benchmark [3] Hedge Fund Interest - Alexander & Baldwin, Inc. was held by 17 hedge fund portfolios at the end of Q3 2025, a slight decrease from 18 in the previous quarter [4] - While the potential of Alexander & Baldwin as an investment is acknowledged, the company is not among the 30 most popular stocks among hedge funds [4] - The fund suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Alexander & Baldwin [4]

Company Overview - Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses providing a variety of products including groceries, fresh food, household goods, electronics, and more [2] Recent Performance - Costco's stock performance was unsatisfactory last year, declining by 6% while the S&P 500 increased by 16% [1] - The company faced challenges including the departure of long-standing CFO Richard Galanti, who had been with the company for over 38 years [1] - Renewal rates for memberships have slowed, growing less than market expectations [1] Market Position - Despite past performance issues, there is a shift in sentiment as the new year has brought a different outlook for Costco's stock [1]

Group 1 - The Home Depot, Inc. is viewed positively by analysts, with a recent rally of 3% attributed to market rotation and a potential turnaround in housing [1] - The company is considered a leading indicator in the home improvement sector, with optimism surrounding its stock despite challenges in the housing market [1] - The stock is part of a Charitable Trust portfolio, indicating confidence in its performance as a key player in the housing-related market [1][2] Group 2 - The company is expected to benefit from anticipated rate cuts, which are believed to be driven by political influences, enhancing its position in the housing market [2] - Home Depot is highlighted as the only housing-related stock in the Charitable Trust, emphasizing its unique role in the investment strategy [2] - There is a comparison made with AI stocks, suggesting that while Home Depot has potential, other sectors may offer greater upside with less risk [2]

Core Viewpoint - Constellation Brands, Inc. appears more attractive now compared to a year ago, with a significant drop in its price-to-earnings ratio from 20 times earnings to 13 times this year's earnings estimate [1]. Group 1: Company Overview - Constellation Brands, Inc. operates in the beverage industry, selling beer, wine, and spirits. Its beer portfolio includes well-known brands such as Corona, Modelo, Pacifico, and Victoria [2]. - The company also has a diverse range of wine and spirits labels, including Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, and SVEDKA [2]. Group 2: Financial Performance - The stock has experienced a decline of 2.8%, which has contributed to its current dividend yield, although the dividend was not raised [1]. - Despite a better-than-expected quarterly performance, there is skepticism about whether the worst is over for the company [1].

Core Viewpoint - Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on developing therapies for metabolic and endocrine disorders, but there are concerns about its investment potential compared to other stocks like Eli Lilly [1] Company Overview - Viking Therapeutics is engaged in the development of therapies targeting metabolic and endocrine disorders [1] - The company has been mentioned in the context of a bidding war between Novo Nordisk and Pfizer for Metsera, indicating its relevance in the competitive landscape of biopharmaceuticals [1] Market Commentary - Jim Cramer expressed a preference for Eli Lilly over Viking Therapeutics, suggesting that if he were to invest in Viking, it would be in Viking Cruises instead [1] - Cramer noted that Viking Therapeutics might have received a bid if it were expected, but he believes that the ongoing bidding war could lead to a potential acquisition of Viking by the losing party [1] Investment Perspective - While acknowledging the potential of VKTX, the article suggests that certain AI stocks may offer greater upside potential and lower downside risk compared to Viking Therapeutics [1]

Group 1: Fundsmith Equity Fund Performance - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - The fund has outperformed the index by 1.7% per annum since its inception [1] - Underperformance in 2025 attributed to index concentration, growth of assets in Index Funds, and dollar weakness [1] Group 2: IDEXX Laboratories, Inc. Overview - IDEXX Laboratories, Inc. focuses on products for veterinary diagnostics, livestock, poultry, dairy, and water testing markets [2] - The stock had a one-month return of 4.56% and a 52-week gain of 73.13% [2] - As of January 12, 2026, IDEXX's stock closed at $724.76 with a market capitalization of $57.98 billion [2] Group 3: IDEXX Laboratories, Inc. Performance and Hedge Fund Interest - IDEXX Laboratories made its sixth appearance in Fundsmith's investor letter, recovering from previous underperformance [3] - Revenue for IDEXX increased by 13% reported and 12% organically in Q3 2025 [3] - 55 hedge fund portfolios held IDEXX at the end of Q3 2025, an increase from 48 in the previous quarter [3]

Group 1 - PNC Financial Services Group, Inc. is highlighted as a key stock in Jim Cramer's game plan, indicating its significance in the upcoming earnings season for banks [1] - Cramer notes that PNC has been a volatile performer recently, contrasting its past consistent growth, and suggests that the bank's performance could set trends for consumer and corporate financials [1] - Following Cramer's positive remarks, PNC's stock has appreciated by over 15% [2] Group 2 - Cramer anticipates strong earnings from PNC and other major banks, indicating a positive outlook for the financial sector [2] - PNC is described as a "cult bank stock," suggesting a strong following and investor interest, which may contribute to its performance [2]

Core Viewpoint - Delta Air Lines is expected to report strong earnings, with positive sentiment surrounding the airline industry as a whole, which has seen significant recovery since November [1] Company Overview - Delta Air Lines, Inc. (NYSE:DAL) provides passenger and cargo air transportation, operating a large fleet and global network, and also offers aircraft maintenance, repair, and overhaul services [1] Industry Performance - The airline sector has experienced a notable rebound, with the Jets ETF rising nearly 20% from its lows three weeks ago, and major airlines like Delta, United, and American Airlines seeing over 20% increases during the same period [1] - Demand for holiday travel is strong, with expectations for continued healthy demand into early 2026 [1] Financial Impact - Delta estimated a $200 million hit to pre-tax profit due to the government shutdown, but indicated that the overall impact was smaller than anticipated [1]

Fundsmith Equity Fund Performance - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - Since inception, the fund has outperformed the index by 1.7% per annum [1] - Underperformance in 2025 attributed to index concentration, growth of assets in Index Funds, and dollar weakness [1] Brown-Forman Corporation Analysis - Brown-Forman Corporation (NYSE:BF-B) experienced a one-month return of -12.46% and a 52-week loss of 22.71% [2] - As of January 12, 2026, Brown-Forman's stock closed at $26.62 with a market capitalization of $12.33 billion [2] - Fundsmith highlighted that Brown-Forman and PepsiCo's snack business are affected by reduced appetites due to weight loss drugs and changing drinking habits among Generation Z [3] Hedge Fund Interest in Brown-Forman - Brown-Forman was held by 35 hedge fund portfolios at the end of Q3 2025, a decrease from 37 in the previous quarter [4] - While Brown-Forman is recognized for its investment potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Core Insights - Americold Realty Trust, Inc. (NYSE:COLD) is recognized as one of the 13 best dividend stocks with a yield exceeding 6% [1] - Analysts from Scotiabank and UBS have raised their price targets for Americold, indicating a cautious outlook for the cold storage sector [2][3] Group 1: Analyst Ratings and Price Targets - Scotiabank increased its price target for Americold from $12 to $14 while maintaining a Sector Perform rating, highlighting challenges in pricing and occupancy for the upcoming year [2] - UBS raised its price target from $12 to $13 and kept a Neutral rating, suggesting that 2026 could be a pivotal year for REITs, with expected total returns of 9% to 11% [3] Group 2: Company Overview and Business Model - Americold has established itself as a leader in temperature-controlled warehousing, growing rapidly through acquisitions to become the second-largest cold-storage portfolio globally [4] - The company operates over 230 temperature-controlled warehouses, providing approximately 1.5 billion cubic feet of storage, generating revenue from leasing space to food manufacturers, distributors, and retailers, as well as managing third-party facilities [5]