Company Performance - Pinterest reported solid results in the second quarter, but the stock reacted negatively due to concerns around margin gains and guidance [1] - User growth was softer in Q2, and tariffs are impacting growth [1] Investment Strategy - Narweena, an asset manager, focuses on finding market dislocations resulting from a poor understanding of long-term business prospects [1] - The firm believes excess risk-adjusted returns can be achieved by identifying businesses with secular growth opportunities in markets with barriers to entry [1] - Narweena's research process emphasizes company and industry fundamentals to uncover unique insights [1] Market Trends - An aging population with low population growth and stagnating productivity growth is expected to create a different opportunity set compared to the past [1] - Many industries may face stagnation or secular decline, which could improve business performance if competition decreases [1] - Conversely, some businesses may experience rising costs and diseconomies of scale [1] - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is chasing a limited set of investment opportunities, driving up asset prices and compressing risk premia [1]

Core Insights - Amazon.com, Inc. (NASDAQ: AMZN) faced significant investor disappointment in the second quarter, leading to a perception that other investment opportunities may be more attractive [1] Group 1: Company Overview - The company is led by Julian, who is part of the investing group Best Of Breed Growth Stocks, focusing on stocks with a high probability of delivering substantial alpha compared to the S&P 500 [1] - Julian's investment strategy combines growth-oriented principles with strict valuation criteria, enhancing the conventional margin of safety [1] Group 2: Investment Strategy - Julian Lin, a financial analyst, specializes in identifying undervalued companies with long-term growth potential [1] - The approach emphasizes companies with robust balance sheets and effective management teams within sectors that have extended growth trajectories [1]

Core Insights - Pinterest (NYSE: PINS) demonstrates solid profitable growth despite its results being overshadowed by larger competitors in the market [1] - The company has successfully maintained strong user growth, which has contributed to its overall performance [1] Company Performance - Pinterest continues to show solid profitable growth metrics, indicating resilience in its business model [1] - The user growth trajectory remains positive, suggesting effective engagement strategies and potential for future revenue generation [1] Investment Perspective - The analysis highlights the importance of identifying companies with strong balance sheets and management teams, particularly in sectors with long-term growth potential [1]

Core Insights - Salesforce, Inc. is experiencing a moment reminiscent of past challenges, as it continues to deliver strong financial results while investors express concerns regarding its latest acquisition, which may signal a regression to a less mature phase of growth [1] Group 1: Company Performance - The company is posting strong results, indicating robust operational performance [1] Group 2: Investor Sentiment - Investors are worried that the recent acquisition could represent a return to a less mature phase for the company, reflecting concerns about strategic direction [1]

Meanwhile, the S&P and NASDAQ hitting new highs yet again, helped today by those strong earnings from Microsoft and Meta. My next guest expects tech to remain a powerhouse. Joining me now is Nadia Levelvel.She is senior US equity strategist at UBS. Nadia, uh, we are getting closer to your upside scenario of 6,700 on the S&P. What would convince you that these levels have staying power.I think it has to be the continued um pickup in tech and we have conviction in that. Um we are more looking at things at a v ...

Financial Data and Key Metrics Changes - In the second quarter of 2025, the company reported a 15% year-over-year growth in economic earnings per share, reaching $5.39 [4][21] - Adjusted EBITDA for the quarter was $220 million, reflecting a 1% year-over-year increase, with fee-related earnings growing 4% year-over-year [21] - The company generated over $8 billion in net client cash flows, marking the strongest net flow quarter in over a decade [10][20] Business Line Data and Key Metrics Changes - The company added approximately $55 billion in alternative assets under management (AUM), increasing total alternative AUM by 20% in just six months [5][12] - Private markets AUM grew by 50% since 2022, now standing at $150 billion, driven by high teens organic growth and new affiliate partnerships [12][15] - Liquid alternatives generated nearly $12 billion in net inflows during the quarter, with strong demand for tax-aware solutions [13][14] Market Data and Key Metrics Changes - The company experienced $19 billion in client cash inflows into alternatives, offsetting $11 billion in outflows from active equities [10][11] - The wealth channel is seeing an acceleration of alternative flows, particularly in private equity, private credit, and infrastructure [6][12] - The company’s strategic engagement with affiliates is enhancing access to the rapidly expanding wealth marketplace [6][18] Company Strategy and Development Direction - The company is focused on evolving its business mix towards secular growth areas, particularly in alternative asset classes [10][18] - The strategic partnerships with affiliates are aimed at capitalizing on growth opportunities in private markets and liquid alternatives [7][18] - The company anticipates a meaningful increase in economic earnings per share in 2026 due to the growth in alternative AUM and new affiliate partnerships [5][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term impact of their strategy execution, highlighting substantial value creation potential for shareholders [9][24] - The company is well-positioned to continue executing its growth strategy, supported by a strong balance sheet and diversified business profile [20][24] - Management noted that the ongoing demand for alternative strategies is expected to drive further growth across affiliates [6][18] Other Important Information - The company completed the sale of its minority stake in Peppertree, more than doubling its initial investment [8] - The company repurchased approximately $100 million in shares during the second quarter, with a full-year repurchase expectation of around $400 million [24][65] - The company is actively pursuing new investment opportunities, having announced four new partnerships in 2025 [7][8] Q&A Session Summary Question: Contribution from AQR and Pantheon - Management expects both Pantheon and AQR to be double-digit contributors to earnings this year, with AQR focusing on tax-aware solutions benefiting high net worth individuals [28][40] Question: Capacity Constraints for AQR - AQR has a competitive advantage due to its innovation and robust trading systems, allowing it to sustain growth despite potential capacity constraints [43][46] Question: Portfolio Management and Buybacks - The company is focused on long-term partnerships with affiliates rather than actively trading stakes, and buybacks are viewed as a flexible tool for returning capital to shareholders [52][60][63] Question: Private Market Fundraising Consistency - The company has seen substantial growth in private markets, with a diverse range of fundraising sources contributing to a more consistent flow of capital [70][75] Question: European Market Trends - Management has not observed significant reallocations from U.S. to European managers impacting their second-quarter numbers, but they are monitoring the situation closely [80][84]

Group 1 - Toast, Inc. (NYSE: TOST) is gaining traction in the fintech sector but is currently trading at high valuations [1] - Block, Inc. (NYSE: XYZ) has not recovered from its all-time highs and is trading at lower valuations [1] - Julian Lin, a financial analyst, focuses on identifying undervalued companies with long-term growth potential and strong management [1] Group 2 - The investment group led by Julian Lin emphasizes stocks with a high probability of delivering significant alpha compared to the S&P 500 [1] - The investment strategy combines growth-oriented principles with strict valuation criteria to enhance the margin of safety [1]

Group 1 - Airbnb has underperformed the broader market over the last several years, which may present a potential opportunity for value-minded investors [1] - The valuation proposition for Airbnb has improved significantly, indicating a more attractive investment case [1] - The company is expanding into offering additional services, which could enhance its growth prospects [1] Group 2 - Julian Lin, a financial analyst, focuses on finding undervalued companies with secular growth potential [1] - The investment strategy emphasizes strong balance sheets and management teams in sectors with long growth runways [1]

Group 1 - Nvidia Corporation is experiencing a resurgence in the bull market, reaching new highs despite facing export control limitations to China due to tariff disputes [1] - The company is part of an investment strategy that focuses on stocks with a high probability of delivering significant alpha relative to the S&P 500, combining growth principles with strict valuation hurdles [1] - The investment approach emphasizes finding undervalued companies with strong balance sheets and management teams in sectors with long-term growth potential [1]

Group 1 - ClearPoint Neuro's stock has faced pressure due to soft first-quarter results and additional capital raising, but strong consumables growth indicates underlying business progress [1] - System placements are highlighted as a positive aspect of ClearPoint's business performance [1] - Narweena, an asset manager, focuses on identifying market dislocations and believes in achieving excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] Group 2 - Narweena's research emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities, differing from past trends [1] - Many industries may experience stagnation or secular decline, potentially improving business performance due to decreased competition [1] Group 3 - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1] - Richard Durant, the leader of Narweena, has a strong educational background in engineering, finance, and an MBA, along with passing the CFA exams [1]