Group 1 - Mark Mahaney, head of internet research at Evercore ISI, identifies Expedia (EXPE) as a top investment pick due to its cheap valuation, trading at 13-14 times earnings, which is below market multiples [1] - The new management at Expedia is expected to improve execution, potentially leading to growth rates that converge with industry leaders like Booking and Airbnb [1] - If the growth and valuation convergence continues, it is anticipated that being long on Expedia will be a beneficial investment strategy [1]

Core Insights - Expedia Group is enhancing partner growth through the introduction of an AI-powered trip planner and multiple APIs [1] Group 1 - The new AI-powered trip planner aims to streamline the travel planning process for partners, potentially increasing efficiency and user satisfaction [1] - Multiple APIs are being introduced to facilitate better integration and functionality for partners, allowing for a more seamless experience [1] - This initiative is part of Expedia Group's broader strategy to leverage technology to drive growth and improve service offerings in the B2B sector [1]

文旅消费TOP10目的地，南京第一 10月8日，美团旅行发布数据显示，长达8天的超级黄金周，带动平台出行订单量较2024年国庆假期增长 超30%。文旅消费TOP10目的地城市分别为南京、成都、西安、北京、重庆、武汉、长沙、洛阳、上 海、广州，南京排名首位。 游客在夫子庙景区游玩。新华社发 该平台数据显示，国庆中秋假期期间，南京整体旅游订单量同比增长15%。当地主要客源地为：上海、 北京、杭州、合肥、深圳。当地热门景区为：牛首山文化旅游区、红山森林动物园、明孝陵、大报恩寺 遗址景区、南京中山植物园。 多目的地"串游"趋势明显 今年国庆中秋假期，多目的地"串游"趋势明显，飞猪的数据显示，机票、用车等交通工具类商品人均预 订量同比提升5%，酒店、线路游、门票等商品人均预订量同比提升4.6%。假期出行的客单价同比提升 14.6%，95后游客预订人次占比最高。 大学生们不再局限于就近城市的"特种兵式" 旅游，转而探索更多玩得久、体验深入的长线目的地。飞猪数据显示，大学生的机票预订量同比增长 63%，今年国庆中秋假期大学生的人均预订金额较去年提升31%。 10月1日美团旅行发布热度TOP10景区榜单，牛首山文化旅游区上榜 ...

Sandwish/iStock via Getty Images By Reed Cassady, CFA, Sam Peters, CFA & Jean Yu, CFA, Ph.D. Harnessing Market Energy: Active Value in an Inelastic Era - Market Overview One of the core concepts in thermodynamics is that energy flow drives most systems. This principle also helps explain the behavior of economies, life and — importantly — financial markets, where capital flows act as the system’s energy source, with potentially massive impacts. For instance, the Inelastic Market Hypothesis (IMH) suggest ...

Market Overview - Mid cap growth equities experienced modest gains in Q3, with the Russell Midcap Growth Index returning 2.8%, lagging behind the Russell Midcap Value Index at 6.2% and the Russell Midcap Index at 5.3% [3] - The U.S. Federal Reserve's rate cut in September contributed to easing monetary policy, benefiting rate-sensitive sectors and renewing interest in cyclical and innovation-led areas [3] Investor Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty and enabling companies to execute delayed strategic decisions [4] - Earnings estimates stabilized, particularly in technology and AI-related sectors, despite ongoing challenges in non-residential construction and discretionary segments [4] Portfolio Performance - The ClearBridge Mid Cap Growth Strategy outperformed its benchmark in Q3, driven by stock selection in IT, consumer staples, and healthcare sectors, while consumer discretionary and financials sectors slightly detracted from performance [5] Sector Contributions - In the IT sector, AppLovin (APP) and Monolithic Power Systems (MPWR) were standout performers, with AppLovin benefiting from strong earnings and optimism around its e-commerce business [6] - Consumer staples saw positive contributions from Performance Food Group (PFGC) and Casey's General Stores (CASY), both benefiting from strong operational performance [7] - The consumer discretionary sector faced challenges, particularly with Chipotle Mexican Grill (CMG) and Wingstop (WING) experiencing declines due to competitive pressures and softer spending trends [8] - Financials sector was a modest drag on performance, with Tradeweb Markets (TW) and Corpay facing challenges from macro volatility and company-specific issues [9] Portfolio Positioning - New positions were initiated in Roblox, benefiting from improved growth dynamics and advertising opportunities, and APi Group, which is well-positioned in safety and industrial services [10][11] - Exited position in Deckers Outdoor (DECK) due to increasing competitive pressures in the sneaker market [12] Outlook - Leadership within mid growth stocks remains selective, with a few companies rewarded for differentiated technology and strong pipelines, while others struggle with demand and competition [13] - Focus remains on identifying businesses with secular growth drivers across technology, healthcare, and industrials sectors [14] - Near-term market uncertainty is expected to persist, but the strategy is positioned to benefit from companies sustaining durable growth in earnings and cash flow [15] Portfolio Highlights - The ClearBridge Mid Cap Growth Strategy had positive contributions across seven of the 11 sectors, with IT and healthcare being the leading contributors [16] - Stock selection in IT, consumer staples, healthcare, and energy sectors contributed positively, while consumer discretionary and financials sectors weighed on performance [17] - Individual stock contributions included AppLovin, United Rentals (URI), and Performance Food, while detractors included Chipotle Mexican Grill and Tradeweb Markets [18]

Core Insights - The article highlights a significant increase in travel orders on the Meituan platform during the eight-day Golden Week, with a growth of over 30% compared to the 2024 National Day holiday [1] Summary by Categories Travel Orders - Meituan Travel reported that travel orders surged by more than 30% during the eight-day Golden Week compared to the previous year's National Day holiday [1] Top Travel Destinations - The top ten travel destinations during the National Day and Mid-Autumn Festival holiday were identified as Nanjing, Chengdu, Xi'an, Beijing, Chongqing, Wuhan, Changsha, Luoyang, Shanghai, and Guangzhou [1]

Group 1: AI Market and Stock Valuations - Concerns are rising on Wall Street regarding stock valuations amid the AI boom, drawing parallels to the dot-com bubble, yet analysts see no signs of slowing AI capital expenditures (CapEx) [1][2] - Analysts believe the AI-led growth is substantial and expect the rally to extend to AI applications, with the S&P 500 potentially reaching 7,000 [2][3] Group 2: DigitalBridge Group Inc (NYSE:DBRG) - DigitalBridge is viewed positively due to its exposure to AI and infrastructure, with expectations of significant embedded gains from technology investments [7][8] - The company is raising its third flagship digital infrastructure fund, which, if successful, could lead to a cheap stock price at current levels [8] Group 3: BlackRock Inc (NYSE:BLK) - BlackRock's assets under management (AUM) have grown to over $10.6 trillion, with a 15% increase in AUM and 13% revenue growth, positioning it as a leader in the ETF market [9][10] - The company is focusing on innovation and technology, which is reshaping wealth management and investment models [10][11] Group 4: Colgate-Palmolive Co (NYSE:CL) - Colgate is expected to see earnings recovery, with projected organic sales growth of 3-5% and a consistent dividend increase over 60 years [11][12] - The company is recognized for its strong capital allocation and significant free cash flow generation [13] Group 5: Repligen Corp (NASDAQ:RGEN) - Repligen is positioned well in the life sciences sector, with a focus on bioprocessing and a consistent growth rate of 8-12% per year [14][15] - The company is expected to benefit from increased drug approvals and a recovery in pharma orders, with anticipated sales growth of 15% in 2025 [15] Group 6: Expedia Group Inc (NASDAQ:EXPE) - Expedia is considered a top pick due to its cheap valuation, trading under market multiples, and potential for growth under new management [16] Group 7: ServiceNow Inc (NYSE:NOW) - ServiceNow is starting to monetize its AI tools, with a target of $1 billion in annual contract value from AI-related products by 2026 [17][18]

Core Insights - Middle Coast Investing's third-quarter 2025 investor letter indicates a strong performance, with its portfolio returning 9.6%, outperforming the S&P 500's 7.8% return [1] - The Core U.S. portfolios achieved a return of 10%, while the Russell 2000, S&P 600, and Nasdaq returned 12%, 8.7%, and 11.2% respectively [1] - European Portfolios appreciated by 5.5% during the same period [1] Company Focus: Tripadvisor, Inc. (NASDAQ:TRIP) - Tripadvisor, Inc. reported a one-month return of -9.91% and a 52-week gain of 11.03%, with shares closing at $16.00 and a market capitalization of $1.858 billion on October 6, 2025 [2] - The company experienced a revenue growth of 7% in Q2 2025, totaling $529 million, which was at the upper end of expectations [3] - Middle Coast Investing sees potential in Tripadvisor's user-generated content and suggests it could enhance its product offerings through AI summarization tools [3] Hedge Fund Interest - Tripadvisor, Inc. was held by 40 hedge fund portfolios at the end of Q2 2025, a decrease from 44 in the previous quarter [3] - Despite acknowledging Tripadvisor's potential, Middle Coast Investing believes that certain AI stocks present greater upside potential with less downside risk [3]

Core Viewpoint - The holiday travel season is expected to boost travel and entertainment spending by 1%, contrasting with a decline in other spending areas, presenting potential investment opportunities in travel stocks [1]. Group 1: Expedia Group - Expedia Group (EXPE) has shown a total return of 129.6% over the last three years, with a year-to-date increase of over 16% and more than 24% in the last three months [2][4]. - The stock is currently trading about 4% above its consensus price target, but bullish price targets of $240 and $250 from Mizuho and BTIG Research suggest further upside potential [3]. - With a forward P/E ratio of around 17x and expected earnings growth of 20% in the next 12 months, the stock is considered undervalued [4]. Group 2: Royal Caribbean - Royal Caribbean (RCL) has delivered a total return of over 765% in the past three years and is up 37% in 2025, driven by strong travel demand and a repaired balance sheet [5][6]. - Despite a recent 12% decline in shares due to profit-taking, analyst sentiment remains bullish with several price targets near or above $400 [6]. - The company has raised its dividend by 25% this year, enhancing its appeal to shareholders as it prepares for the holiday travel season [7]. Group 3: Southwest Airlines - Southwest Airlines (LUV) is projected to experience over 50% earnings growth in the next 12 months, making its forward P/E ratio of 20x noteworthy [9]. - The airline is expected to benefit from rising jet fuel costs and lower interest rates, which may stimulate demand for low-cost domestic travel [10]. - Although LUV stock is down about 3.5% in 2025, upcoming earnings reports and holiday travel demand could present an attractive entry point for investors [11].

Core Viewpoint - Airbnb, Inc. (NASDAQ: ABNB) stock has not shown a significant recovery since the lows in April, with shares only increasing by 8% from the $110 range during that period [1]. Company Performance - The stock price of Airbnb has remained stagnant since April, indicating a lack of momentum in recovery despite the broader market conditions [1]. Analyst Background - The analysis comes from a retired Wall Street portfolio manager with over two decades of experience in the technology, media, and telecommunications (TMT) sectors, emphasizing a focus on momentum and risk mitigation through various market cycles [1].