Summary of McKesson's 2025 Conference Call Company Overview - **Company**: McKesson Corporation (NYSE: MCK) - **Event**: UBS Healthcare Conference - **Date**: November 10, 2025 Key Points Industry Insights - **North American Pharmaceutical Business**: McKesson has resegmented its business to provide clarity on strategies, separating specialty oncology from the North American Pharmaceutical segment, which includes the US Pharma and Canadian distribution businesses [3][5][6] - **Market Trends**: The company has observed consistent growth in utilization, driven by demographic trends and innovations in drug development and distribution [7][9] - **Specialty Drugs**: There is a notable shift towards specialty drugs, which are becoming a larger part of the business mix, contributing to improved margins [9][10] Financial Performance - **Operating Expense Leverage**: Over the past five years, McKesson has improved its operating expense leverage by over 1,000 basis points, attributed to investments in automation and technology [17][18] - **Revenue Growth**: The adjusted EPS guidance for the year is between $38.35 and $38.85, representing a growth of 16%-18%, or 18%-20% when excluding prior year gains [63] Strategic Initiatives - **Automation and AI**: McKesson is investing in automation and AI to enhance operational efficiency, with a new distribution center in Ohio being 90% automated [16][18] - **Oncology and Specialty Services**: The company is focused on expanding its oncology services and exploring opportunities in other specialties, particularly in high drug spend areas like retina and ophthalmology [35][44] Pricing and Market Dynamics - **Generic Pricing**: The pricing environment for generics has been stable, with month-to-month variations not significantly impacting long-term strategies [21][22] - **Impact of Legislation**: McKesson does not foresee direct impacts from recent legislative changes regarding drug pricing, as they continue to negotiate fair value for their services [24][25] Future Opportunities - **Clinical Trials and Research**: McKesson sees potential in expanding clinical trial access and management through its Sarah Cannon Research Institute joint venture, which could enhance its oncology platform [33][34] - **New Therapeutic Areas**: The company is exploring opportunities in other therapeutic areas with high innovation and drug spend, beyond oncology and ophthalmology [44][45] Operational Considerations - **Working Capital Management**: McKesson is focused on efficient working capital management, ensuring that fixed fees for services remain unaffected by fluctuations in drug prices [28][29] - **GPO and MSO Dynamics**: The Group Purchasing Organization (GPO) services a wide range of providers, and the company is looking to grow beyond drug distribution into additional service offerings [49] Conclusion - McKesson is strategically positioned to leverage its capabilities in the North American pharmaceutical market, focusing on specialty drugs, operational efficiency through automation, and expanding its oncology services while navigating the evolving regulatory landscape. The company anticipates continued growth and opportunities in high drug spend areas, supported by its investments in technology and clinical services.

Financial Data and Key Metrics Changes - BXSL reported net investment income (NII) of $0.82 per share, representing a 12% annualized return on equity, primarily from interest income [11][27] - NAV per share decreased by $0.18 quarter over quarter to $27.15 due to markdowns [12][28] - The distribution of $0.77 per share was 106% covered by NII, yielding an annualized distribution yield of 11.3% [12][27] Business Line Data and Key Metrics Changes - BXSL ended the quarter with $13.8 billion of investments at fair value, a 15% increase year-over-year [15] - The weighted average yield on performing debt investments at fair value was 10%, down from 10.2% in the previous quarter [15][30] - Nearly 98% of investments are in first-lien, senior secured loans, with an average loan-to-value (LTV) of 49.7% [16][18] Market Data and Key Metrics Changes - M&A activity increased by 63% year-over-year, contributing to BXSL's growth [8] - Defaults in the leveraged loan and high-yield market declined by 37% year-to-date [10] - BXSL's portfolio companies experienced an average EBITDA growth of nearly 9% year-over-year [17][28] Company Strategy and Development Direction - The company is focusing on first-lien senior secured loans with large sponsor-backed companies, particularly in sectors with long-term tailwinds [10][12] - BXSL is integrating AI considerations into its investment process, targeting larger businesses and mission-critical products [13][21] - The company aims to maintain a disciplined approach to investing while capitalizing on heightened deal activity [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing deal activity and stable credit quality, despite external narratives of market bubbles [6][10] - The company anticipates continued growth in M&A activity and asset turnover, with spreads remaining attractive compared to traditional fixed incomes [11][14] - Management noted that the economic backdrop is generally positive, with strong corporate balance sheets and earnings growth [88] Other Important Information - BXSL's total liquidity was reported at $2.5 billion, with ending leverage at 1.22 times, within the target range [33] - The company has maintained a strong focus on document protections and control in its credit agreements [20] Q&A Session Summary Question: Why retain exposure to Squarespace? - Management indicated that retaining exposure to high-quality companies can be beneficial, and spreads on new deals have remained stable [36][41] Question: Update on Medallia's performance? - Management stated there was no significant update on Medallia, and the acquisition by Qualtrics would not change the competitive dynamics significantly [46][47] Question: Outlook for dividends with falling base rates? - Management plans to maintain a competitive and sustainable dividend while monitoring the impact of base rates on earnings [53] Question: Quality of deals in the current market? - Management noted that the quality of deals has been good, with higher quality assets leading the M&A activity [62] Question: How much of the funding activity was from incumbent versus new borrowers? - Over 80% of funding activity was to incumbent borrowers, with a consistent trend observed in previous quarters [66] Question: Concerns about loan-to-value ratios? - Management clarified that the increase in LTV is marginal and reflects adjustments in enterprise values rather than a significant risk [72][73] Question: Will the premium of private credit over syndicated loans be maintained? - Management expressed confidence that the premium will be maintained due to the value private credit brings to the market [76]

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Core Insights - Greenhaven Road Capital reported a third-quarter 2025 return of approximately -9%, with year-to-date returns also at -9% [1] - The fund's performance was negatively impacted by a lack of direct investment in AI, no overlap with major indices like the S&P 500 and Russell 2000, and insufficient holdings in small, high-growth, unprofitable companies that have benefited from the AI landscape [1] Company Analysis: KKR & Co. Inc. - KKR & Co. Inc. (NYSE: KKR) is highlighted as a holding in Greenhaven Road Capital's portfolio, with a one-month return of 0.73% and a 52-week loss of 22.18% [2] - As of November 7, 2025, KKR's stock closed at $121.32 per share, with a market capitalization of $112.286 billion [2] - The alternative asset management sector, including KKR, is currently out of favor, with concerns primarily related to traditional private equity and private credit affecting share prices [3]

Core Insights - Greenhaven Road Capital reported a third-quarter 2025 return of approximately -9%, resulting in year-to-date returns also at approximately -9% [1] - The fund's performance was negatively impacted by a lack of direct investment in AI, no overlap with major indices like the S&P 500 and Russell 2000, and insufficient holdings in small, high-growth, unprofitable companies that have benefited from the AI landscape [1] Company Focus: Lifecore Biomedical, Inc. (NASDAQ:LFCR) - Lifecore Biomedical, Inc. is highlighted as a key stock, with a one-month return of 3.63% and a 52-week gain of 4.74% [2] - As of November 7, 2025, Lifecore Biomedical's stock closed at $6.85 per share, with a market capitalization of $256.645 million [2] - The investor letter expressed confidence in Lifecore Biomedical's intrinsic value, suggesting that the market has yet to recognize its true worth [3]

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Market Overview - Stock futures are higher, particularly for the NASDAQ, as the government appears to be moving towards reopening, which may positively impact market sentiment [1] - The S&P 500 is projected to reach 7,000 by the end of the year, indicating a bullish outlook despite recent volatility [13] AI Sector Insights - There is a prevailing nervousness about the AI sector, but this sentiment may present buying opportunities, as historical patterns suggest that market corrections can lead to favorable entry points [3][4] - The AI sector is expected to have transformative potential, with significant applications in cloud computing, which is generating substantial profits for cloud providers [5][6] Earnings Performance - Earnings reports have exceeded expectations, with a year-over-year increase of 14% in the current quarter, compared to an anticipated 6.5% [10] - The market is experiencing an earnings-led rally, which is considered a healthy driver for market growth, rather than relying solely on multiple expansions [11] Valuation Metrics - The forward price-to-earnings (PE) ratio for the S&P 500 is currently around 22 to 23, which is consistent with levels seen post-pandemic [12] - The "Magnificent 7" stocks are trading at a higher forward PE of approximately 30, while the broader S&P 493 is at about 19 to 20, indicating a mixed valuation landscape [12] Seasonal Trends - A potential "Santa Claus rally" is anticipated, with historical trends suggesting an additional four percentage points in market gains during November and December [14]

Core Insights - The real estate sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **CoStar Group Inc (NASDAQ:CSGP)**: Reported better-than-expected quarterly results with a 20% year-over-year revenue increase, marking its 58th consecutive quarter of double-digit revenue growth. Despite this, the stock fell approximately 11% over the past month, with a current RSI of 26.4 and a 52-week low of $63.82. The stock closed at $67.52, showing a slight increase of 0.2% [8] - **KE Holdings Inc – ADR (NYSE:BEKE)**: Achieved positive quarterly earnings, with the CEO highlighting significant shifts in consumer demand and advancements in AI technology. The stock has decreased around 12% in the last month, with an RSI of 20.5 and a 52-week low of $15.38. It closed at $15.60, down 1.3% [8] - **Lineage Inc (NASDAQ:LINE)**: Reported disappointing quarterly results but noted growth in Adjusted EBITDA and AFFO despite challenging market conditions. The stock has also fallen about 12% over the past month, with an RSI of 26.8 and a 52-week low of $34.22. It closed at $34.62, down 3.5% [8]

Core Insights - Quadient has been recognized as one of the Top 3 French software publishers in the "Horizontal Solutions" category and ranked 17th overall in the Top 250 by EY and Numeum, highlighting its growth and execution of the Elevate to 2030 strategic plan focused on customer-driven innovation and long-term value creation [1][2] Industry Overview - The French software industry demonstrated resilience in 2024, achieving a growth rate of 7.4% and reaching €23.1 billion in revenue despite a cautious economic climate [2] - Software publishers generating over €100 million in revenue outperformed the broader market, with Quadient's Digital Solutions recording 7.7% organic growth in fiscal year 2024, including a 10.1% increase in the fourth quarter driven by a 10.2% rise in subscription revenues [2] Strategic Focus - A significant shift towards artificial intelligence (AI) has been noted, with 83% of companies identifying it as their top strategic priority, surpassing previous focuses on cybersecurity and cloud/SaaS [3] - The adoption of generative AI has accelerated, with over 60% of companies integrating it into their offerings, marking a 21-point increase compared to 2023 [3] Company Initiatives - Quadient is advancing its intelligent automation platform with AI-powered capabilities aimed at simplifying financial and communication workflows, as part of its commitment to delivering long-term value through sustainable solutions [4] - The company announced the acquisition of Serensia, a leading French e-invoicing platform, to enhance its support for customers ahead of France's mandatory e-invoicing rollout [4] Recognition and Market Position - Quadient has been recognized by IDC as the number one leader in Customer Communications Management (CCM) for 2024, holding 11% of the global market share [5] - The company was also named the Most Valuable Pioneer in the AI Maturity Matrix for CCM by QKS Group, reflecting its advanced use of AI in enhancing document processing and customer journeys [5]

Market Sentiment - The S&P 500 has been performing well in 2025, but investor sentiment is mixed, with 38% feeling optimistic and 36% feeling pessimistic about the market's performance over the next six months [1]. Investment Strategy - Warren Buffett emphasizes the importance of a long-term investment approach over trying to time the market, suggesting that patience is key to navigating market fluctuations [4][6]. - Historical context shows that despite significant challenges, the stock market has delivered substantial long-term gains, as evidenced by the Dow's rise from 66 to 11,497 throughout the 20th century [5]. Current Market Concerns - Investors are increasingly worried about potential issues such as an AI bubble burst and the overall state of the economy, leading to uncertainty in investment decisions [2][7].