Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, ...

Company Performance - ClearPoint Neuro (NASDAQ: CLPT) reported solid second quarter results, with expansion in all segments [1] - Some investors may find the results disappointing due to modest system placements and ongoing losses, but this is not seen as particularly concerning [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations caused by poor long-term business prospects [1] - The firm aims for excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [1] - Narweena's research emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, differing from past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [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 pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1]

Financial Data and Key Metrics Changes - The company reported a 15% year-over-year growth in economic earnings per share, reaching $5.39 [4][23] - Adjusted EBITDA for the second quarter was $220 million, a 1% increase year-over-year, with fee-related earnings growing 4% [21][23] - The company generated over $8 billion in net client cash flows, marking the strongest net flow quarter in over a decade [11][21] Business Line Data and Key Metrics Changes - Alternative assets under management (AUM) increased by approximately $55 billion, a 20% rise in just six months, with record net inflows of $33 billion into alternatives [5][20] - Private markets AUM grew by 50% since 2022, now standing at $150 billion, driven by high teens organic growth and new affiliate partnerships [13][20] - Liquid alternatives generated nearly $12 billion in net inflows, supported by tax-aware solutions [15][20] Market Data and Key Metrics Changes - The company experienced $11 billion in outflows from active equities, reflecting industry performance headwinds [11][12] - The wealth channel is seeing an acceleration of alternative flows, particularly in private equity, private credit, and infrastructure [6][20] Company Strategy and Development Direction - The company is focusing on evolving its business mix towards secular growth areas, particularly in alternative asset classes [11][20] - AMG aims to increase the contribution from alternatives to more than two-thirds of its business over the medium term [57][60] - The company is actively pursuing new partnerships and investments in private markets and liquid alternatives [8][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term impact of their strategy execution, anticipating substantial value creation for shareholders [10][20] - The company is well-positioned to continue executing its growth strategy, supported by a strong balance sheet and diversified business profile [21][26] Other Important Information - The company completed the sale of its minority stake in Peppertree, more than doubling its initial investment [9][20] - AMG repurchased approximately $100 million in shares during the second quarter, with plans to repurchase about $400 million for the full year [26][66] 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 [29][31] Question: Capacity Constraints for AQR - AQR has a competitive advantage due to its innovation and robust trading systems, allowing for significant growth potential [46][48] Question: Portfolio Management and Buybacks - The company does not actively manage its portfolio but focuses on long-term partnerships with affiliates [60][62] - Share repurchases are viewed as a flexible tool for returning capital to shareholders while pursuing growth investments [66][67] Question: Private Market Fundraising Consistency - The company has seen substantial growth in private markets, with $8 billion raised in the last quarter, driven by multiple affiliates [70][76] Question: European Market Trends - Management noted no significant impact from reallocations to European managers in Q2, but they are monitoring the situation closely [82][86]

Group 1 - EPR Properties has shown signs of recovery from the pandemic, particularly among its experiential tenants who were significantly impacted during lockdowns [1] - There is skepticism regarding whether the recovery of EPR Properties is overdone, as the stock is trading at a slight discount compared to more diversified peers [1] - The investment strategy of Julian Lin focuses on identifying undervalued companies with long-term growth potential, emphasizing strong balance sheets and management teams [1]

Core Insights - Snapchat (SNAP) is facing significant challenges, indicated by its low stock valuation which is at a deep discount compared to close peers [1] - The company is less profitable and has a more leveraged balance sheet than its competitors [1] Company Analysis - Snapchat's stock valuation suggests potential trouble, as it is trading at a significant discount relative to similar companies in the industry [1] - The profitability of Snapchat is lower compared to its peers, which raises concerns about its financial health [1] - The company's balance sheet shows higher leverage, indicating increased financial risk [1] Investment Perspective - The article highlights the importance of identifying undervalued companies with strong growth potential, which is a principle followed by the investing group led by Julian [1] - The focus is on companies with robust balance sheets and effective management teams, particularly in sectors with long-term growth opportunities [1]

Group 1 - Simon Property Group, Inc. (NYSE: SPG) has successfully transformed its image from being perceived as a victim of e-commerce to a company demonstrating consistent growth in rent and earnings [1] - The company has been experiencing a trend of rising rent and earnings, indicating strong operational performance [1] Group 2 - The investment strategy employed by Julian Lin focuses on identifying undervalued companies with long-term growth potential, emphasizing strong balance sheets and effective management teams [1]