Group 1: Fund Performance - Longleaf Partners Fund returned -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and the Russell 1000 Value's 5.33% [1] - The firm is dissatisfied with the portfolio's flat performance, focusing on investments in real assets and brands that generate growing free cash flow (FCF) per share [1] - The fund anticipates that its ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases [1] Group 2: FedEx Corporation Overview - FedEx Corporation (NYSE:FDX) had a one-month return of 1.44% and a 52-week loss of 11.34%, closing at $238.17 per share with a market capitalization of $56.925 billion on October 23, 2025 [2] - The company is focused on operational improvements despite a challenging macro environment, with expectations for significant value realization from the separation of its Freight unit next year [3] Group 3: Investment Sentiment - FedEx Corporation is not among the 30 most popular stocks among hedge funds, with 67 hedge fund portfolios holding the stock at the end of Q2 2025, up from 62 in the previous quarter [4] - The company's revenue increased by 3% year-over-year, driven by strength in U.S. domestic package services [4] - While FedEx shows potential as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The trend of investing in blue-chip companies has evolved, with investors now holding a mix of stocks across various industries and market capitalizations, reflecting a more strategic approach to retirement and trading profits [1] Industry Focus - The banking sector remains a key area of investment, with holdings in both the Philippine and US markets, showcasing its stability and growth prospects [1] - The telecommunications industry is also a significant focus for investors, indicating its importance in the overall market landscape [1] - The hotel and logistics sectors are gaining traction, with investments reflecting confidence in their recovery and growth post-pandemic [1] Market Engagement - The entry into the US market has been a strategic move for investors, allowing for broader exposure and opportunities in diverse sectors such as banking, hotels, and logistics [1] - The use of analytical tools and platforms like Seeking Alpha has enhanced the ability to compare market trends and investment opportunities between the Philippine and US markets [1]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 has influenced investment strategies, leading to a broader portfolio across various industries [1] - The US market has become increasingly accessible for investors, with platforms like Seeking Alpha providing valuable analyses for comparison with local markets [1] Investment Focus - The company has diversified investments in banks, telecommunications, logistics, and hotels, indicating a strategic approach to portfolio management [1] - The shift towards investing in blue-chip companies initially has evolved into a more varied investment strategy, including holdings for retirement and trading profits [1] - The entry into the US market in 2020 reflects a growing interest in international investments, particularly in sectors like banking, hotels, and logistics [1]

Core Insights - Retail investors reduced their holdings in 62 midcap stocks during the September quarter of FY26, indicating a 'sell-on-rise' strategy amid market uncertainties [8] - The BSE Midcap index experienced a significant increase of 8% during the period ending September 30, 2025, and extended gains to nearly 13% as of October 21 [8] - Notable gainers included Delhivery with an 87% return, L&T Finance with a 75% surge, and One97 Communications (Paytm) with a 67% increase, despite declines in retail ownership [8] Retail Holdings and Performance - Delhivery topped the gainers' list with an impressive 87% return, while retail ownership decreased by 55 basis points [2][8] - L&T Finance saw a 75% increase in stock value, with retail shareholding falling by 37 basis points [2][8] - Other significant gainers included Indian Bank and Laurus Labs, both rising by approximately 50%, with retail ownership declines of 55 and 11 basis points, respectively [8] Underperformers - Sixteen stocks faced declines due to sustained underperformance, including KPIT Technologies, which dropped 12% and saw retail holdings decrease by 28 basis points [5][8] - Ipca Laboratories recorded a 14.64% drop in stock value, with a 27 basis point reduction in retail stake [5][8] - Other underperformers included Balkrishna Industries (down 9.30%), Blue Star (down 8.08%), and Emami (down 6.15%), with corresponding retail stake cuts [5][6][8] Investment Strategy - WhiteOak Capital MF recommends investing in midcaps through systematic investment plans (SIP) for long-term growth, highlighting a 10-year rolling SIP return average of 17.43% for the Mid Cap Index [7][8] - The note contrasts this with an XIRR of 15.62% for investors who switched based on the previous year's best-performing index [7][8]

Financial Data and Key Metrics Changes - Consolidated freight revenue increased by 4% year-over-year, amounting to approximately $268.9 million, which is an increase of about $10.2 million [3] - Consolidated adjusted operating income decreased by 22.5% to $15 million, primarily due to increases in the combined truckload segment [3] - Net indebtedness as of September 30 increased by $48.6 million to $268.3 million compared to December 31, 2024, resulting in an adjusted leverage ratio of approximately 2.1x and a debt-to-capital ratio of 38.8% [3] - Return on average invested capital on an adjusted basis was 6.9%, down from 8.1% in the prior year [3] Business Segment Performance - The expedited segment had an adjusted operating ratio of 93.6%, which was below expectations but improved by 160 basis points year-over-year [4] - The dedicated segment's adjusted operating ratio was 94.7%, also falling short of both prior year and long-term expectations, despite a fleet growth of 136 tractors, or approximately 9.6% [5] - Managed freight exceeded both revenue and adjusted operating income compared to the prior year but saw a sequential decline due to the loss of a short-term customer [6] - The warehousing segment experienced slightly lower freight revenue and adjusted operating income compared to the prior year, with an adjusted operating ratio of 92.1% [7] Market Data and Key Metrics Changes - The company anticipates a challenging fourth quarter due to a soft freight market and company-specific factors, including increased claims accruals and the impact of the U.S. government shutdown on volumes for the Department of Defense [8][9] - The company expects that as capacity exits the market accelerate, the cost to procure transportation will likely constrain margins in the managed freight segment [9] Company Strategy and Industry Competition - The long-term strategy focuses on growing and diversifying the managed freight segment, with an acceptable return on capital expected from mid-single-digit operating margins [7] - The company plans to exit less profitable business and invest in high-service niches within the dedicated segment [5] - Management expressed optimism about the freight market's recovery pace, driven by government policies affecting driver regulations and capacity exits [9][19] Management's Comments on Operating Environment and Future Outlook - Management noted that the fourth quarter is expected to be unseasonably soft, with challenges from increased claims, government shutdown impacts, and customer bankruptcies [8] - There is a belief that consumer demand will improve with monetary easing and the resolution of trade tensions, which could positively impact the freight market [9] - Management is optimistic about the potential for rate increases after years of stagnation, with recent bids showing increases of 2.5%-4% [23] Other Important Information - The average age of tractors increased to 23 months from 20 months a year ago due to share repurchase programs and acquisition-related payments [3] - The minority investment in TEL contributed a pre-tax net income of $3.6 million for the quarter, down from $4 million in the prior year [7] Q&A Session Summary Question: What is the capacity backdrop and its impact on national spot rates? - Management discussed the complexities of capacity exits and the regional variations in spot rates, noting that some areas are experiencing tighter conditions while national rates have not yet reflected this [12][15] Question: How does the government shutdown affect the Department of Defense business? - Management indicated that about half of the Department of Defense business would be lost due to the shutdown, with some freight potentially returning once operations resume [61] Question: What are the expectations for pricing and bid activity in 2026? - Management noted that low single-digit increases are expected, but significant inflation in costs necessitates higher rates [48] Question: How is the company managing costs in the current environment? - The company has focused on aligning headcount with freight volumes and has implemented cost-cutting measures to manage overhead effectively [74][75] Question: What is the outlook for share repurchases given current valuations? - Management acknowledged that shares are undervalued and indicated that while there is potential for share repurchases, no commitments were made at this time [82][84]

Financial Data and Key Metrics Changes - Consolidated freight revenue increased by 4%, or approximately $10.2 million, to $268.9 million year-over-year [3] - Consolidated adjusted operating income shrank by 22.5% to $15 million, primarily due to increases in the truckload segment [3] - Net indebtedness increased by $48.6 million to $268.3 million compared to December 31, 2024, yielding an adjusted leverage ratio of approximately 2.1 times and a debt-to-capital ratio of 38.8% [3] - Return on average invested capital was 6.9% versus 8.1% in the prior year [3] Business Line Data and Key Metrics Changes - The expedited segment yielded a 93.6% adjusted operating ratio, which is an increase of 160 basis points compared to the prior year [4] - The dedicated segment's adjusted operating ratio was 94.7%, falling short of both the prior year and long-term expectations [5] - Managed freight exceeded both revenue and adjusted operating income compared to the prior year but fell sequentially due to the loss of a short-term customer [5] - The warehousing segment experienced slightly below prior year freight revenue and adjusted operating income, yielding an adjusted operating ratio of 92.1% [6] Market Data and Key Metrics Changes - The average fleet size in the expedited segment shrunk by 31 units, or 3.4%, to 861 average tractors [4] - The company anticipates a continuation of a soft freight market in the fourth quarter, influenced by company-specific factors and a general market downturn [7][8] Company Strategy and Development Direction - The company plans to improve margins through rate increases, exiting less profitable business, and adding more profitable business [4] - There is a focus on reducing fleet in the dedicated segment that is exposed to commoditized end markets while investing in value-added services [5] - The long-term strategy includes growing and diversifying the managed freight segment, with an acceptable return in capital expected from mid-single digit operating margins [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the freight market recovery despite current challenges, citing government policies and consumer demand improvements as potential catalysts [8] - The fourth quarter is expected to remain challenging due to a soft freight market and specific company factors, including increased claims accruals and the impact of the government shutdown [7][8] - Management is optimistic about the potential for rate increases after years of stagnation, with recent bids showing increases [21] Other Important Information - The minority investment in TEL contributed a pre-tax net income of $3.6 million for the quarter, down from $4 million in the prior year [6] - The company is prepared to execute quickly to capture market share and operational leverage when the market environment improves [8] Q&A Session Summary Question: Insights on capacity exits in the market - Management noted that there is a significant concern regarding capacity exits, particularly due to regulatory changes affecting non-domiciled drivers [12][13] Question: Impact of government shutdown on Department of Defense business - Approximately half of the Department of Defense business will be lost during the shutdown, with some freight potentially returning once operations resume [53] Question: Expectations for Q4 performance - Management indicated that Q4 is expected to be softer than usual due to various challenges, including the government shutdown and market conditions [34][68] Question: Share repurchase strategy - The company acknowledges that shares are undervalued and has options available for share repurchases, but no commitment was made to specific buyback amounts [78]

Financial Data and Key Metrics Changes - Consolidated freight revenue increased by 4% or approximately $10.2 million to $268.9 million [3] - Consolidated adjusted operating income shrank by 22.5% to $15 million primarily due to increases in the combined truckload segment [3] - Net indebtedness increased by $48.6 million to $268.3 million compared to December 31, 2024, yielding an adjusted leverage ratio of approximately 2.1 times and a debt to capital ratio of 38.8% [3] - Return on average invested capital was 6.9% versus 8.1% in the prior year [4] Business Segment Performance - The expedited segment had an adjusted operating ratio of 93.6%, which increased by 160 basis points year-over-year [4] - The dedicated segment's adjusted operating ratio was 94.7%, falling short of expectations, but the fleet grew by 136 tractors, approximately 9.6% compared to the prior year [5] - Managed freight exceeded both revenue and adjusted operating income compared to the prior year but fell sequentially due to the loss of a short-term customer [6] - The warehouse segment experienced slightly below prior year freight revenue and adjusted operating income, yielding an adjusted operating ratio of 92.1% [6] Market Data and Key Metrics Changes - The average fleet size in the expedited segment shrunk by 31 units or 3.4% to 861 average tractors [4] - The company anticipates a challenging fourth quarter due to a soft rate market and company-specific factors impacting volumes [8] Company Strategy and Industry Competition - The company plans to improve margins through rate increases, exiting less profitable business, and adding more profitable business [5] - The management is optimistic about the freight market recovery pace despite current challenges [9] - Recent government policies regarding driver regulations are expected to accelerate capacity exiting the market, which may lead to tighter supply and improved rates in the future [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about increased claims accruals, the impact of the U.S. government shutdown on volumes, and customer bankruptcies affecting business [8] - The company is optimistic about the long-term demand recovery driven by government investments and easing monetary policies [9][24] - Management noted that the freight market has not seen rate increases in four years, but recent bids have shown increases of 2.5% to 4% [30] Other Important Information - The minority investment in Tel contributed pretax net income of $3.6 million for the quarter compared to $4 million in the prior year [7] - The company is in a wait-and-hold mode regarding fleet purchases due to uncertainty in pricing [68] Q&A Session Summary Question: Insights on market capacity exits - Management discussed the complexities of capacity exits and the regional variations in spot rates, noting that enforcement of regulations is leading to tighter capacity in certain states [12][14] Question: Impact of government shutdown on DOD business - Management indicated that about half of the DOD business would be lost during the shutdown, with some freight potentially coming back once the government reopens [72][75] Question: Expectations for Q4 performance - Management expects Q4 to be softer than Q3 due to various challenges, including the government shutdown and market conditions [46][48] Question: Pricing and bid activity - Management noted that while low single-digit increases are being discussed, significant inflation in costs necessitates higher rates [60][61] Question: Share repurchase strategy - Management acknowledged the potential for share repurchases given the current undervaluation of shares, but emphasized a cautious approach [108][110]

Core Insights - Amazon plans to replace over half a million jobs with robots by 2033 to meet increasing demand and reduce reliance on human labor [2][3] - The company aims to automate 75% of its operations, having already deployed over 1 million robots, which is about two-thirds of its human workforce [3] - The shift towards automation could save Amazon up to $4 billion annually by 2027 [4] Employment Impact - Amazon is the third largest employer in the US, with approximately 1.5 million employees, primarily in warehouses and delivery roles [7] - The potential reduction of 600,000 jobs would be comparable to the complete disappearance of a major employer like FedEx, which has around 550,000 employees [7] - Studies indicate that the introduction of robots can lead to a decrease in wages, with every robot per 1,000 workers reducing US wages by 0.42% and resulting in an estimated loss of 400,000 jobs [8] Corporate Strategy - Amazon is considering strategies to mitigate the impact of job losses in communities, including enhancing its image as a "good corporate citizen" through community engagement [5] - The company has been advised to use terms like "advanced technology" instead of "automation" and "cobot" instead of "robot" to suggest collaboration [5] - Despite the focus on automation, Amazon maintains that it continues to create jobs and is actively hiring, with plans to fill 250,000 positions for the holiday season [6][9]

Core Insights - The company reported net sales of $167.7 billion in Q2 2025, marking a 13% increase year-over-year, with AWS sales rising by 17.5% to $30.9 billion [1] - Earnings per share increased by 33.3% to $1.68, surpassing the consensus estimate of $1.33, with guidance for Q3 net sales between $174.0 billion and $179.5 billion [7] - Analysts forecast forward revenue and earnings growth rates of 10.74% and 37.80%, significantly higher than sector medians [9] Financial Performance - The company achieved net cash from operating activities of $32.5 billion in Q2 2025, up from $25.3 billion in the previous year, closing the quarter with a cash balance of $57.7 billion and no short-term debt [8] - The advertising segment generated $15.7 billion in revenue during the second quarter, benefiting from a large Prime membership base [15] Business Segments - Amazon operates in various sectors beyond e-commerce, including cloud services, streaming, logistics, and consumer electronics, contributing to a five-year revenue CAGR of 15.80% and earnings CAGR of 39.90% [3] - AWS remains a leader in the cloud market, holding a 30% market share, supported by a wide range of services and a robust operational infrastructure [11][12] Recent Challenges and Resolutions - AWS experienced an outage affecting multiple platforms, but core issues were resolved within three hours, resulting in limited impact on the company's stock [5][6] - Despite concerns about AWS's market share and AI initiatives, the company continues to invest heavily in technology and infrastructure [10][13] Analyst Sentiment - Analysts maintain a bullish outlook on the company's stock, with a "Strong Buy" rating and a mean target price of $267.30, indicating a potential upside of about 23% [17]

I have been working in the logistics sector for almost two decades. I have been into stock investing and macroeconomic analysis for almost a decade. Currently, I focus on ASEAN and NYSE/NASDAQ Stocks, particularly in banks, telco, logistics, and hotels. Since 2014, I have been trading on the PH stock market. I focus on banking, telco, and retail sectors. A colleague encouraged me to engage in the stock market as part of my portfolio diversification instead of putting all my savings in banks and properties. ...