Core Insights - Fundsmith's equity portfolio is valued at approximately $19–20 billion, focusing on high-quality global consumer and technology franchises with strong pricing power and high returns on capital [1][2] - The portfolio structure remains stable, with significant trims in several mega-cap technology positions and selective additions to existing compounders [1][2] Portfolio Overview - Total Portfolio Value: ~$19–20 billion [2] - Top 10 Holdings account for approximately 65–70% of the portfolio [2] - Moderate turnover indicates rebalancing rather than a change in strategy [2] Major Holdings - Top Holdings & Weights: - Stryker (SYK): ~$1.70 billion (~8.6%) - IDEXX Laboratories (IDXX): ~$1.67 billion (~8.4%) - Alphabet (Class A) (GOOGL): ~$1.53 billion (~7.7%) - Microsoft (MSFT): ~$1.34 billion (~6.8%) - Visa (V): ~$1.32 billion (~6.7%) - Automatic Data Processing (ADP): ~$1.27 billion (~6.4%) - Waters (WAT): ~$1.19 billion (~6.0%) - Philip Morris International (PM): ~$1.17 billion (~5.9%) - Meta Platforms (META): ~$1.14 billion (~5.8%) - Marriott International (MAR): ~$1.10 billion (~5.6%) [2] Portfolio Adjustments - Major Trims: - Microsoft: Shares reduced by ~2.36 million (-48% QoQ) - Meta Platforms: Shares cut by ~2.01 million (-56% QoQ) - Philip Morris International: Trimmed by ~1.89 million shares (-21% QoQ) - Alphabet (Class A): Reduced by ~514k shares (-7.6% QoQ) [5] - Notable Adds: - Waters: Added ~347k shares (+9.6% QoQ) [5] - Smaller increases in Visa, Procter & Gamble, and Fortinet indicate steady compounding exposure [5] Investment Philosophy - Fundsmith emphasizes a quality-first investment approach, willing to rebalance positions based on valuations and portfolio risk without altering its core philosophy [2][7] - The recent adjustments reflect portfolio optimization rather than repositioning, maintaining a focus on exceptional businesses for long-term growth [8]

Core Viewpoint - Block is reportedly considering layoffs that could impact 10% of its workforce as part of a broader business overhaul aimed at achieving a $12 billion gross profit target for the year [1][4]. Group 1: Layoffs and Business Overhaul - The company has been informing hundreds of employees about potential job eliminations during annual performance reviews, indicating a significant restructuring effort [2]. - As of late November, Block had under 11,000 employees and has been revamping its staffing and business model since 2024, focusing on integrating Cash App with Square and expanding into AI and crypto [3]. - Job cuts have been occurring across various teams during the performance review period, which extends through the latter part of the month [4]. Group 2: Financial Performance and Credit Services - Block's recent earnings performance has been inconsistent, with its stock experiencing a substantial decline over the past year, and the company is set to report earnings on February 26 [4]. - The company has provided over $200 billion in credit to customers through its Cash App Borrow, Afterpay, and Square Loans products, targeting borrowers often excluded from traditional credit systems [5]. - Block emphasizes that with the right technology, inclusive lending and responsible risk management can coexist, forming the basis for sustainable credit for future generations [5]. Group 3: Credit Underwriting System - Block's Chief Risk Officer highlighted the limitations of the current credit underwriting system, which is outdated and struggles to keep pace with modern financial behaviors [6]. - Nearly 100 million Americans are reportedly blocked from affordable credit due to scoring models that rely on outdated data, rather than current financial behavior [7]. - A shift towards near real-time data could enhance understanding of consumer money management and creditworthiness, addressing the gaps in the current system [7].

Core Viewpoint - Stablecoins are rapidly growing, with a 49% increase last year and a combined market cap of $250 billion for Tether and USDC [1] Group 1: Industry Perspective on Stablecoins - Executives at Visa and Mastercard express skepticism about the demand for stablecoins, stating there is limited utility beyond cross-border payments [2][3] - They argue that in developed markets, stablecoins lack a "product-market fit" as consumers prefer existing payment options [3] Group 2: Advantages of Stablecoins - Stablecoins offer 24/7 settlement and faster payment finalization compared to traditional methods, which can take days [4] - Some stablecoins provide attractive yields, appealing to consumers looking for better returns than traditional bank accounts; Standard Chartered predicts $500 billion in bank deposits will shift to stablecoins by 2028 [6] Group 3: Investment Landscape - There are currently nine stablecoins with market caps exceeding $1 billion, including Tether, USDC, a stablecoin from PayPal, and one from Ripple [7]

Core Viewpoint - Block Inc. is reportedly planning to reduce its workforce by up to 10% as part of a broader business overhaul, affecting hundreds of employees [1] Group 1: Workforce and Business Strategy - The company may cut its workforce by as much as 10%, with hundreds of employees informed that their jobs are at risk [1] - Block has implemented a 12,000-employee cap in 2023 and reaffirmed this commitment in its third-quarter earnings report, with fewer than 11,000 employees as of November [2] Group 2: Financial Performance - Shares of Block have decreased by 14% this year, while the S&P 500 index has increased by 1.27% [3] - The stock experienced a significant drop of 23% in 2025 [3] - The company is expected to report fourth-quarter earnings on February 26, with adjusted earnings forecasted at $403 million, or 68 cents per share, compared to an adjusted EPS of 71 cents in the fourth quarter of 2024 [3]

Group 1 - Block Inc., led by Jack Dorsey, has begun notifying some employees of potential job cuts as part of a broader restructuring plan [1] - The layoffs could affect up to 10% of the workforce, which translates to approximately 1,100 employees [1] - Analysts project Block's fourth-quarter revenue to be around $6.25 billion, with adjusted profits estimated at approximately $403 million [1]

Jack Dorsey’s Block Inc. has been notifying hundreds of employees that their jobs may be eliminated during annual performance reviews as the payments firm embarks on a broader business overhaul. https://t.co/szNfgOdjDe ...

Core Insights - DLocal Limited (NASDAQ:DLO) has shown strong operational momentum with record performance in Total Payment Volume and gross profit, indicating robust demand for its cross-border payments infrastructure despite challenges in certain markets [3][4] - JPMorgan has lowered its price target for DLocal to $18 from $18.50 while maintaining an Overweight rating, anticipating solid quarterly results but noting that tougher year-over-year comparisons may limit upside surprises in payment volumes [2] - The company is focused on product expansion, with its Buy Now, Pay Later Fuse now operational in six countries and supporting 27 local payment methods across 16 countries [3] Company Overview - Founded in 2016 and headquartered in Montevideo, Uruguay, DLocal Limited specializes in enabling global merchants to operate seamlessly in emerging markets [4] - Despite regional volatility, DLocal's expanding payment capabilities and geographic reach position it as a key infrastructure provider in cross-border commerce [4]

Core Thesis - Flywire Corporation is positioned as a leading vertical payments and software company, focusing on digitizing complex payment processes in education, travel, and healthcare sectors, leveraging superior technology for faster settlements and lower fees [3][4][6] Company Overview - Flywire's share price was $14.30 as of January 13th, with trailing and forward P/E ratios of 271.80 and 19.08 respectively [1] - The company was founded to address inefficiencies in international tuition payments, disrupting traditional players by offering a modern, asset-light platform that enhances collection accuracy [4] Revenue Breakdown - Education is the dominant vertical for Flywire, accounting for 77% of its revenue, where it leads in cross-border higher-education payments and is expanding into domestic campus payments [4] - Other growing verticals include travel, healthcare, and a nascent B2B business [4] Strategic Shifts - In response to macro pressures, Flywire has shifted towards disciplined execution and margin expansion, including headcount reductions and a focus on profitability [5] - The acquisition of Sertifi has significantly scaled its travel segment and created cross-sell opportunities, while also reducing the appeal for private-equity takeout [5] Management and Market Position - The management team possesses strong expertise in technology and operations, contributing to high customer retention and expansion [6] - Long-term concerns regarding globalization and student mobility are viewed as cyclical rather than structural, indicating a geographical shift in demand rather than a decline [6] Financial Outlook - Flywire is expected to benefit from improving margins, recurring revenues, and conservative guidance, presenting a compelling risk-reward profile with potential for significant upside from normalized growth and multiple expansion [6]

Group 1 - Flywire Corporation is a leading vertical payments and software company that focuses on digitizing complex areas of accounts receivable, particularly in education, travel, and healthcare [3][4] - The company has a modern, asset-light platform that enhances collection accuracy and reduces manual processes, making it a market leader in cross-border higher-education payments, which account for 77% of its revenue [4] - Flywire has shifted its strategy towards disciplined execution and margin expansion due to macro pressures, including student visa caps, leading to headcount reductions and a focus on profitability [5] Group 2 - The acquisition of Sertifi has significantly scaled Flywire's travel segment and created cross-sell opportunities, while also reducing the appeal for private-equity takeout [5] - Management's expertise in technology and operations has resulted in strong customer retention and expansion, with long-term concerns about globalization and student mobility viewed as cyclical rather than structural [6] - Flywire's improving margins, recurring revenues, and conservative guidance present a compelling risk-reward profile, with potential for significant upside from normalized growth and multiple expansion [6]

Market Overview - The cryptocurrency market has experienced a $2 trillion wipeout, yet venture capitalists continue to invest, with $258 million poured into crypto companies in the first week of February [1] - Key sectors attracting investment include decentralized finance and payments, with four and three deals respectively [1] Investment Trends - Venture capitalists are shifting focus towards later-stage projects that have institutional partnerships and clear go-to-market strategies, aiming to identify promising projects before they achieve mainstream success [2] Major Funding Rounds - **Anchorage Digital**: Secured $100 million in strategic funding led by Tether, positioning itself as a comprehensive service provider for institutional clients in digital asset finance [3][4] - **TRM Labs**: Raised $70 million in a Series C round led by Blockchain Capital, achieving a valuation of $1 billion. The company provides analytics software for tracing transactions and preventing fraud in digital asset networks [5][6] - **Jupiter**: Completed a $35 million funding round from ParaFi Capital, utilizing its stablecoin JupUSD for the transaction [7]