Core Insights - Longleaf Partners Fund returned 3.35% in Q4 2025, outperforming the S&P 500's 2.66% but underperforming the Russell 1000 Value Index's 3.81% [1] - The firm faced challenges in 2025, with only 5% of the portfolio gaining 20% or more compared to 35% of the S&P 500 [1] - The firm emphasizes strengthening portfolio outcomes over chasing short-term winners, advocating for a focus on real companies during speculative periods [1] Company Focus: Regeneron Pharmaceuticals, Inc. - Regeneron Pharmaceuticals, Inc. had a one-month return of -5.94% and a 52-week gain of 7.55%, with a market capitalization of $77.693 billion [2] - Initially a detractor, Regeneron became a contributor in Q4 2025, with a phased buy-in strategy proving effective [3] - The company is well-positioned in allergic diseases and oncology, with a focus on its pipeline value rather than just EYLEA, which constitutes less than 20% of its value [3] - Regeneron has a net cash balance sheet, strong owner-partners, and has avoided large M&A, opting for significant share repurchases in 2025 [3]

Market Overview - U.S. stock futures are lower, with Dow futures dropping approximately 700 points [1] Company-Specific Developments - Valneva SE has withdrawn its IXCHIQ Chikungunya vaccine BLA and IND in the U.S. following an FDA suspension and a review of new serious adverse events, leading to a 7.7% decline in shares to $9.29 in pre-market trading [1] - Rezolve AI PLC shares fell 15% to $3.92 in pre-market trading [2] - POET Technologies Inc experienced an 11.2% decline to $7.37 in pre-market trading [2] - Forward Industries Inc shares decreased by 10.5% to $7.70 after a previous gain of 4% on Friday [2] - Babcock & Wilcox Enterprises Inc shares dipped 9.9% to $7.59 in pre-market trading [2] - Bakkt Holdings Inc fell 9.5% to $19.38 after a 10% increase on Friday [2] - Applovin Corp shares decreased by 9.5% to $515.03 after a 6% decline on Friday [2] - ALT5 Sigma Corp shares fell 8.9% to $2.36 after gaining 7% on Friday, despite regaining Nasdaq compliance [2] - HIVE Digital Technologies Ltd shares dropped 7.7% to $3.20 in pre-market trading [2] - Aeva Technologies Inc shares declined 6.8% to $18.01 in pre-market trading [2] - Bitdeer Technologies Group fell 6.8% to $14.75 in pre-market trading [2] - Terrestrial Energy Inc shares decreased by 6.3% to $10.95 in pre-market trading [2] - Tesla Inc shares fell 2.7% to $425.75, with CEO Elon Musk confirming that vehicles equipped with the AI4 (HW4) chip will achieve unsupervised autonomous driving without upgrades [2] - NVIDIA Corp shares declined 2.4% to $181.77 in pre-market trading [2]

Group 1: Gold Market - Gold prices have surged significantly, climbing 9% in the first three weeks of 2026 and a remarkable 75% over the past 12 months, signaling fiscal stress, currency debasement, and heightened geopolitical risk [2][11]. Group 2: Corporate Developments - Novartis (NVS) CEO Narasimhan revealed the pharmaceutical giant is pursuing more biotech deals with China than with Europe and has secured an agreement with the U.S. government that shields it from tariffs [3][11]. Group 3: Energy Sector - The International Energy Agency (IEA) forecasts years of downward pressure on oil and gas prices due to persistent supply, indicating a challenging outlook for energy markets [4][11]. Group 4: Cryptocurrency Market - Major cryptocurrency assets experienced a downturn, with Coinbase Global (COIN) falling 4.4%, Bitfarms (BITF) down 7.5%, and MicroStrategy (MSTR) declining 5.5% [5][11]. Group 5: Investor Confidence - Despite renewed Trump tariff threats, ZEW German Investor Morale is anticipated to improve for a second consecutive month, even as the EU-US trade war intensifies [6][11].

Market Reaction - U.S. stock futures experienced a significant decline, with the Dow Jones Industrial Average futures dropping 722 points (1.46%) to 48,825.00, S&P 500 futures falling 109.75 points (1.57%) to 6,867.00, and Nasdaq-100 futures decreasing 475.75 points (1.85%) to 25,213.25 [1][3][26] - The sell-off was triggered by President Trump's announcement of tariffs on European imports, starting at 10% on February 1 and escalating to 25% by June 1, unless NATO allies support the U.S. acquisition of Greenland [1][3][26] Tariff Implications - The European Union is considering retaliatory tariffs amounting to approximately $108 billion and may activate an anti-coercion mechanism that could restrict U.S. companies' access to European markets [1][3][26] - Analysts warn that such actions could lead to forced selling of U.S. assets, with potential exposure estimated at $8 trillion across various asset classes [1][3][26] Investor Behavior - Investors are moving towards safe-haven assets, with gold prices rising 2.95% to $4,731.00 and silver reaching record highs near $95 [2][20][24] - The uncertainty surrounding tariffs is causing concerns about rising import prices and inflation, which could complicate central bank policies and delay rate cuts [6][12][25] Bond Market Dynamics - The U.S. 10-year Treasury yield increased to nearly 4.3%, while the 30-year yield approached 4.9%, reflecting a global bond sell-off [9][28] - Rising yields are raising borrowing costs across the economy, impacting mortgage rates, corporate loans, and equity valuations [11][28] Earnings Season Concerns - The timing of the market downturn coincides with a busy earnings calendar, with major companies set to report results, raising concerns about demand and pricing power [13][19] - Consensus estimates suggest S&P 500 earnings growth could be around 12% to 15% this year, but strategists caution that escalating trade tensions could pose significant downside risks [14][19] Commodity Market Signals - Commodity markets indicate a risk-off sentiment, with gold and silver prices reflecting strong demand amid geopolitical and trade uncertainties [20][24] - Oil prices are under pressure, with Brent crude hovering near $64 per barrel and U.S. West Texas Intermediate trading below $60, as fears of a global economic slowdown weigh on demand [22][25]

Market Overview - U.S. equities showed resilient but volatile performance in Q4, with major indexes near all-time highs while market conditions shifted significantly beneath the surface [2] - The S&P 500 Index returned 2.7% during the quarter, while the Russell Midcap Growth Index declined 3.7%, indicating increased selectivity among investors [3] Performance Analysis - The ClearBridge Growth Strategy outperformed its benchmark for the third consecutive quarter, benefiting from early-quarter momentum in AI-related sectors and strong downside protection as risk appetite moderated [4] - The Strategy delivered a strong year, outperforming its benchmark by nearly 600 basis points (gross of fees), highlighting the importance of stock selection in a market where much of the upside is already priced in [6] Sector Contributions - Positive contributions came from the consumer discretionary and materials sectors, while the consumer staples and information technology sectors detracted from performance [20] - Notable contributors included Vertex Pharmaceuticals, Broadcom, Freeport-McMoRan, and TE Connectivity, while detractors included e.l.f. Beauty and Doximity [22] Portfolio Positioning - The Strategy reallocated capital towards opportunities with more attractive risk-reward profiles, including new positions in Vistra, Alnylam Pharmaceuticals, and Hilton [14] - The portfolio is more diversified across sectors and subsectors, improving resilience while maintaining the ability to capture long-term upside [7] Outlook - The outlook remains consistent with earlier assessments, emphasizing the importance of disciplined stock selection and a balanced approach to portfolio construction amid increased volatility [17] - AI continues to represent a long-term opportunity, with a focus on maintaining exposure within the AI complex while balancing offensive and defensive characteristics in the portfolio [18]

Market Overview - US stocks are expected to face significant losses due to renewed trade tensions between the US and Europe, particularly regarding Greenland, with Dow Jones futures indicating a drop of over 700 points [1] - The S&P 500 futures fell by 1.6% and Nasdaq 100 futures dropped by 1.9%, following a losing week for Wall Street [1] Trade Tensions - President Trump threatened a 200% import tariff on French wines after France's President Macron declined an invitation to join Trump's "Board of Peace" [2] - Trump also stated that eight NATO countries would face additional import duties of 10% unless a deal regarding Greenland was reached, while the EU is considering $108 billion in retaliatory tariffs [3] Economic Impact - Treasury yields have risen to their highest levels in four months, with the 30-year yield reaching 4.93%, influenced by a sell-off in Japanese bonds and trade war risks [5] - The dollar has fallen to a two-week low, while gold and silver prices have reached record highs due to increased demand for safe-haven assets [5] Corporate Earnings - Investors are preparing for a busy earnings season, with Netflix, Intel, and Johnson & Johnson set to report results, and S&P 500 earnings growth expected to be around 12% to 15% this year [7] - The sentiment of "Sell America" could lead to potential downside for corporate earnings if trade tensions persist [7] Acquisition News - GSK has agreed to acquire RAP Therapeutics for $2.2 billion, which is expected to enhance its food allergy treatment portfolio [7] - Shares of RAP Therapeutics surged over 60% following the announcement of the acquisition [8]

Core Thesis - United Therapeutics Corporation is positioned for growth driven by its lead product treprostinil, which is used in treating pulmonary arterial hypertension (PAH) and is expanding into idiopathic pulmonary fibrosis (IPF) [2][3] Company Overview - United Therapeutics is a commercial-stage biotechnology company focused on treprostinil, a prostacyclin analogue, with multiple delivery platforms including Tyvaso, Tyvaso DPI, Remodulin, and Orenitram [2] - The company has established a profitable franchise in PAH and pulmonary hypertension-associated interstitial lung disease (PH-ILD) [2] Growth Drivers - The expansion of Tyvaso into idiopathic pulmonary fibrosis represents a significant growth opportunity, addressing a larger patient population with high unmet medical needs [3] - The ex-US TETON-2 Phase 3 trial has successfully met its primary endpoint, indicating potential anti-fibrotic benefits of treprostinil [3] - The ongoing TETON-1 study in the US and Canada is critical for supporting a supplemental New Drug Application (NDA) and could expand the addressable market to approximately 100,000 patients in the US [3] Financial Position - United Therapeutics has over $4 billion in cash and investments, with strong annual operating cash flow exceeding $1.3 billion, indicating a robust financial position [4] - The company does not rely on external financing, allowing it to absorb litigation risks and fund research and development initiatives [4] Competitive Landscape - While there is competitive pressure from companies like Liquidia, United Therapeutics' multi-modal platform and established patient support infrastructure provide a competitive advantage [5] - The TETON-1 trial is seen as a pivotal moment for the company, with a strong core franchise offering downside protection [5] Market Performance - As of January 15th, United Therapeutics' shares were trading at $471.99, with trailing and forward P/E ratios of 17.89 and 15.15 respectively [1]

Company Overview - Abivax is a France-based biotech company that experienced a share price increase of over 1,740% last year due to progress with its leading drug candidate, obefazimod [1] - The current market capitalization of Abivax is approximately 8.74 billion euros ($10.15 billion) [5] Drug Candidate: Obefazimod - Obefazimod is being developed to treat ulcerative colitis (UC), a market currently dominated by major pharmaceutical companies [2] - Unlike existing UC therapies that suppress the immune system, obefazimod aims to control symptoms without compromising immune function [3] - In a phase 3 study, obefazimod demonstrated statistically significant remission in patients with moderate to severe UC, with 47.3% of participants having inadequate responses to prior therapies [3] Market Potential - The therapy has the potential to exceed blockbuster status at its peak, indicating strong market prospects [4] - Eli Lilly is reportedly preparing a bid of 15 billion euros ($17.42 billion) to acquire Abivax, representing a 72% premium over its current market cap [5][6] Competitive Landscape - Eli Lilly, a leader in the weight loss market, is looking to expand its portfolio and could enhance its competitiveness in the immunology market through the acquisition of obefazimod [6] - There is a possibility that other pharmaceutical companies may also consider acquiring Abivax due to the promising prospects of obefazimod [6] Investment Considerations - The potential acquisition by Eli Lilly could lead to a significant increase in Abivax's stock price, while the absence of an acquisition may result in a loss of value [8] - Despite the promising clinical data for obefazimod, potential clinical or regulatory setbacks could pose risks to the stock [7]

The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Hangzhou Diagens Biotechnology Co., Ltd. 杭州德適生物科技股份有限公司 (A joint stock company incorporated in the People's Republic of China with limited liabili ...

Core Insights - OpenAI has played a crucial role in the AI ecosystem and the ongoing AI Revolution, significantly contributing to market gains since the launch of ChatGPT in November 2022 [1]. Group 1: Company Overview - OpenAI is recognized as a linchpin in the AI sector, driving substantial market growth [1]. - The Biotech Forum, led by Bret Jensen, focuses on identifying high-potential biotech stocks, offering a model portfolio of 12-20 selected stocks [2]. Group 2: Market Analysis - The Biotech Forum provides live discussions on trade ideas, weekly research updates, and market commentary, enhancing investor engagement and decision-making [2].