Lawrence Fuller has been managing portfolios for individual investors for 30 years, starting his career at Merrill Lynch in 1993 and working in the same capacity with several other Wall Street firms before realizing his long-term goal of complete independence when he founded Fuller Asset Management. He also manages the Focused Growth portfolio on the new fintech platform called Dub, which is the first copy-trading platform approved by securities regulators in the US, allowing retail investors to copy the po ...

Industry Overview - The Zacks Investment Management industry is experiencing growth driven by asset growth, digital transformation, evolving investment vehicles, deeper personalization, and strategic scale [1] - Investment managers, also known as asset managers, manage various financial investments for clients, providing diversification and reducing volatility impacts [3] Key Trends - Continued asset inflows are expected to drive AUM growth, with equity markets performing well and institutional interest increasing [4] - There is a notable rise in inflows into alternative investments, including index funds, private credit funds, and ETFs, alongside the growth of tokenized assets [5] - Mergers and acquisitions (M&As) are being utilized by firms to expand scale, cut costs, and enhance product diversification [6][7] - Elevated expenses due to regulatory compliance and technology upgrades are anticipated to impact profits, although investments in AI and digital platforms may improve margins in the long run [9][10] Industry Performance - The Zacks Investment Management industry ranks 58, placing it in the top 24% of 243 Zacks industries, indicating positive near-term prospects [11][12] - The industry's earnings estimates have been revised upward by 1.9% since April 2025, reflecting growing analyst confidence [13] Comparative Analysis - Over the past two years, the industry has underperformed the S&P 500 Index, gaining 33.9% compared to the S&P 500's 52% increase [15] - The industry's trailing 12-month price-to-tangible book (P/TB) ratio is 3.35X, significantly lower than the S&P 500's 12.55X, indicating a discount compared to the broader market [18][19] Company Highlights - **Ameriprise Financial (AMP)**: As of September 30, 2025, AMP's total AUM was $1.66 trillion, with a CAGR of 5.9% in net revenues over the last five years [27][28]. The company has been restructuring to improve profitability and has a Zacks Rank of 2 (Buy) [31] - **Invesco (IVZ)**: IVZ's AUM reached $2.1 trillion as of September 30, 2025, with a CAGR of 8.5% over the last five years [34]. The company has undertaken initiatives to improve efficiency and has a Zacks Rank of 1 (Strong Buy) [38] - **Affiliated Managers Group (AMG)**: AMG's total AUM was $803.6 billion as of September 30, 2025, with a recent shift towards private markets and liquid alternatives to counter revenue challenges [41][43]. The company also holds a Zacks Rank of 1 [45]

Core Viewpoint - Allworth Financial LP significantly increased its stake in BlackRock Enhanced Equity Dividend Trust, indicating strong institutional interest in the fund [1] Institutional Holdings - Allworth Financial LP boosted its position in BlackRock Enhanced Equity Dividend Trust by 3,319.6% during Q2, acquiring an additional 43,952 shares, bringing its total to 45,276 shares valued at $403,000 [1] - Raymond James Financial Inc. increased its holdings by 4.9% in Q1, now owning 3,642,059 shares worth $31,322,000 after acquiring 171,007 shares [2] - Waterfront Wealth Inc. raised its stake by 7.2% in Q2, owning 690,657 shares valued at $6,140,000 after purchasing 46,150 shares [2] - Shaker Financial Services LLC lifted its position by 128.1% in Q2, now holding 627,929 shares worth $5,582,000 after acquiring 352,617 shares [2] - Penserra Capital Management LLC increased its stake by 3.0% in Q2, owning 614,307 shares valued at $5,461,000 after purchasing 18,154 shares [2] - Boothe Investment Group Inc. grew its holdings by 1.3% in Q2, now owning 480,964 shares worth $4,276,000 after buying 5,959 shares [2] Stock Performance - BlackRock Enhanced Equity Dividend Trust shares opened at $8.96, with a 12-month low of $7.16 and a high of $9.24; the 50-day moving average is $9.05 and the 200-day moving average is $8.84 [3] Dividend Announcement - The fund announced a monthly dividend of $0.0619 per share, to be paid on November 28, with an annualized yield of 8.3%; the ex-dividend date is November 14 [4][5] Company Profile - BlackRock Enhanced Equity Dividend Trust is a closed-ended equity mutual fund managed by BlackRock Advisors, LLC, focusing on dividend-paying stocks across various sectors and market capitalizations in the U.S. public equity markets [6]

Group 1: BlackRock and Renovo Home Partners - BlackRock Inc. has revised its valuation of the private debt extended to Renovo Home Partners from 100 cents on the dollar to zero following Renovo's bankruptcy filing [7][8] - Renovo, a company formed by private equity firm Audax Group, had previously undergone a recapitalization in April, where lenders converted some loans into equity to help the company recover [8] - Despite the financial struggles, BlackRock and MidCap Financial had marked the Renovo debt at par until the end of September, indicating an expectation of full repayment [9] Group 2: Mortgage Rates and Fed Funds Rate - The relationship between mortgage rates and the Federal Reserve's fed funds rate has been misunderstood, as mortgage rates have been more closely tied to the interest on 10-year Treasury notes [10][12] - Factors influencing longer-term Treasury yields include economic growth expectations, fiscal policies, inflation expectations, and borrower credit risk, which can lead to mortgage rates moving in opposite directions from short-term rates [12] Group 3: AI and Investment Bubbles - The concept of "Inflection Bubbles" is introduced, which are characterized by beneficial long-term effects and fewer harmful side effects compared to "Mean-reversion Bubbles" [13][14] - Investments in AI are driving significant advancements in infrastructure, particularly in chip manufacturing and power generation, which are expected to have long-term utility [20][21] - The current AI bubble is fostering innovation and funding for new technologies, including novel chip designs and lithography machines, which may not have received attention otherwise [22][23][24] Group 4: E-Commerce and AI Integration - An interview discusses the challenges of product visibility in Google search results compared to AI models like ChatGPT, with AI providing more accurate recommendations [25][30] - Amazon is positioned to benefit from the integration of AI in e-commerce, as it consistently ranks highest in consumer trust and delivery speed [31] - Walmart has removed restrictions on multichannel fulfillment, allowing third-party sellers to utilize Amazon's distribution network, which could enhance competition in the e-commerce space [32][33]

Core Insights - SoftBank Group has divested its entire stake in Nvidia, selling approximately 32.1 million shares for a total of $5.83 billion to allocate funds for other AI investments [1][3]. Group 1: SoftBank's Financial Moves - The sale of Nvidia shares is part of a broader strategy, as SoftBank also divested $9.2 billion in T-Mobile US shares during the same quarter to raise capital for AI-related investments [3]. - Nvidia previously constituted 19.3% of SoftBank's portfolio, highlighting the significance of this divestment [2]. Group 2: AI Investment Strategy - SoftBank's investment in OpenAI is substantial, with plans to invest an additional $30 billion, necessitating the divestment of existing portfolios [5]. - The company has been acquiring its stake in Nvidia since 2020, coinciding with the rise of AI technologies, particularly after the launch of OpenAI's ChatGPT [4]. Group 3: Leadership Vision - Masayoshi Son, SoftBank's founder and CEO, emphasizes a mission focused on the evolution of humanity through artificial super intelligence (ASI), indicating a strong commitment to AI investments [6]. - SoftBank's investments extend beyond OpenAI to include stakes in other AI leaders like ByteDance and Perplexity AI, reflecting a comprehensive approach to AI technology [6]. Group 4: Market Reactions - Following the announcement of the Nvidia divestment, shares of Nvidia fell by 3%, while SoftBank's stock price increased by approximately 3.6% on the same day [7].

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, indicating a dynamic approach to investment management [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, highlighting the firm's extensive distribution network [1]

Economic Outlook - The global economy is undergoing significant changes due to shifting monetary policies, inflation pressures, and technological advancements, leading to concerns about potential market corrections [1] - Economic risks are likened to "cockroaches" that are unpleasant but do not undermine the system's integrity, contrasting with "termites" that would cause systemic damage [2][3] Income Disparity - There is a growing concern regarding the financial pressures on lower-income households, which may lead to reduced spending and broader economic implications [6][9] - The K-shaped economy is highlighted, where wealth accumulation at the top does not translate to improved conditions for lower-income consumers, raising social and political issues [8][10] Federal Reserve Policy - The Federal Reserve is facing a divided stance on its dual mandate of employment and inflation, with both sides expressing concerns about current economic conditions [15][16] - The potential for a new Fed chair to bring a unifying narrative is emphasized, particularly in light of the impact of AI on productivity and growth [17][18] AI and Economic Impact - AI is viewed as a significant driver of productivity, but there are concerns about its potential to displace jobs if the corporate mindset focuses solely on cost minimization [30][31] - The current investment landscape in AI is described as a "rational bubble," with significant investments in foundational models but risks associated with overvaluation and lack of diffusion policies [34][36] Inflation and Interest Rates - Inflation is currently stable at around 3%, and there is a debate on whether the Fed should adjust its inflation target to a range rather than a fixed point [27][64] - The Fed's independence is under scrutiny due to political pressures, which could impact its credibility and effectiveness in managing inflation [64][66] Market Dynamics - The market is experiencing a bifurcated economy, with high-income consumers benefiting from stock market gains while lower-income households face affordability challenges [49][83] - The potential for further rate cuts by the Fed is anticipated, especially in light of a slowing economy and pressures on the labor market [58][62]

Core Insights - Steady earnings growth is valued by company executives and analysts as a sign of profitability, but earnings acceleration has a stronger impact on stock prices, with leading stocks often experiencing this acceleration before price increases [1][3] - QuantumScape Corporation (QS), Silicon Laboratories Inc. (SLAB), and Affiliated Managers Group, Inc. (AMG) are currently demonstrating strong earnings acceleration [1][8] Earnings Acceleration Definition - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when the quarter-over-quarter earnings growth rate increases over a specified time frame [2] Importance of Earnings Acceleration - Unlike earnings growth, which may already be reflected in stock prices, earnings acceleration helps identify stocks that have not yet attracted investor attention, leading to potential price rallies [3] - An increasing percentage of earnings growth indicates a fundamentally sound company, while a sideways or decelerating growth percentage may signal consolidation or a downturn [4] Screening Parameters - The screening process involves identifying stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods' growth rates, with projected EPS growth rates for the upcoming quarter expected to surpass prior periods [5][6][7] - Additional criteria include a current price of at least $5 and an average 20-day trading volume of 50,000 or more to ensure adequate liquidity [7] Top Stocks Identified - The screening narrowed down approximately 7,735 stocks to nine, highlighting QS, SLAB, and AMG as top candidates showing strong EPS acceleration [8] - QuantumScape focuses on solid-state lithium-metal batteries for electric vehicles, with an expected earnings growth rate of 21.3% for the current year [9] - Silicon Laboratories specializes in analog-intensive mixed-signal solutions, with an expected earnings growth rate of 152.3% for the current year [10] - Affiliated Managers provides investment management services, with an expected earnings growth rate of 17.7% for the current year [11]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Affiliated Managers Group (AMG) - AMG currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance [3] Price Performance - AMG shares have increased by 8.95% over the past week, significantly outperforming the Zacks Financial - Investment Management industry, which rose by only 0.15% [5] - Over the past month, AMG's price change is 10.8%, compared to the industry's mere 0.04% [5] - In the last quarter, AMG shares rose by 18.66%, and over the past year, they increased by 38.41%, while the S&P 500 only moved 4.53% and 13.83%, respectively [6] Trading Volume - AMG's average 20-day trading volume is 293,917 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, five earnings estimates for AMG have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $24.26 to $25.13 [9] - For the next fiscal year, five estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, AMG is recommended as a stock to consider for near-term investment opportunities [11]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum [2][7] - The Value Score identifies undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score focuses on a company's future prospects by analyzing earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends using recent price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores to identify stocks with attractive value, growth potential, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for better stock selection [9] Stock Example: Franklin Resources (BEN) - Franklin Resources, Inc. is a global investment management company with diverse brands and services [12] - BEN holds a 3 (Hold) Zacks Rank and a VGM Score of B, indicating potential for growth [13] - The company is forecasted to achieve year-over-year earnings growth of 12.6% for the current fiscal year, with a Zacks Consensus Estimate of $2.50 per share [13][14]