peepo/iStock via Getty Images Dear Partners, In the third quarter of 2025, fund assets appreciated by 11.0%. For the three-year period, the fund is up 66.7%1 compared to the S&P 500 return of 92.0%.2 Our Japanese holdings performed well in the quarter, buoyed by price appreciation in the Japanese market, up 21.6% year-to-date.3 The last time Japan notably outperformed the US equity market was in 2013, when Japanese stocks surged following “Abenomics” reforms, with the market returning about 27% while th ...

Kingdom Capital Advisors, a private investment firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the portfolio recovered from the significant drawdowns from November 2024 to June 2025. The composite returned 20.78% (net of fees) in the quarter, compared to 12.39% for the Russell 2000 TR, 8.12% for the S&P 500 TR, and 9.01% for the NASDAQ 100 TR. The portfolio compounded at 21.06% (net of fees) since its inception vs. 4.60% for the Russ ...

Core Insights - Designer Brands is undergoing a leadership change as it searches for a new Chief Financial Officer during a challenging period for the company and the industry [3][5]. Company Performance - The company reported a 4.2% year-over-year decline in second-quarter net sales, totaling $739.8 million, with comparable store sales down by 5% [5]. - U.S.-specific retail sales and comparable sales also experienced a decline, leading the company to refrain from providing forward-looking guidance due to tariff volatility [5]. Tariff Impact - Fluctuating tariff rates and changing consumer spending patterns have raised concerns for Designer Brands this year, with tariffs becoming a more significant cost than initially anticipated [6]. Leadership Transition - Jared Poff, the Chief Financial Officer and Chief Administrative Officer, will leave the company at the end of the month after a decade of service, with Mark Haley stepping in as the interim principal financial officer starting November 1 [7]. - Haley, who joined Designer Brands in 2017, will receive a one-time cash retention bonus of $100,000 for his interim role, which must be repaid if he resigns within 24 months [7].

Group 1 - The core event is the "Super Category Day" for running shoes on JD.com, featuring discounts and a wide selection of popular running shoes from brands like Nike, Adidas, Li Ning, and more [1][8] - The event runs from October 9 at 20:00 to October 10, offering limited-time discounts of up to 50% and select shoes starting at 59 yuan [1][8] Group 2 - For urban runners, JD.com has curated a selection of shoes with strong cushioning and high rebound features, such as the Xtep Backing running shoes and Nike Winflo 11, designed for comfort and stability [3] - The Li Ning Chitu 8 PRO and Adidas PUREBOOST 21 are highlighted for their lightweight and responsive designs, suitable for various running activities [3] Group 3 - For trail runners, professional trail running shoes are essential, with options like HOKA Challenger 8 and HOKA Torrent 4, designed for diverse terrains and safety during night runs [4] - The Kailas FUGA EX3 and Anta Wind and Rain shoes are also mentioned for their durability and performance on rugged surfaces [4] Group 4 - The event features "champion's choice" running shoes for marathon enthusiasts, including the Anta C202 6 carbon plate shoes and Xtep 160X 7.0 shoes, designed for competitive training and record-breaking performance [5][6]

Core Insights - Jared Poff, the executive vice president, chief financial officer, and chief administrative officer of Designer Brands, is leaving the company to pursue a new opportunity, with his last day being October 31 [1][2] - Poff has been with Designer Brands since 2015, serving as EVP and CFO since October 2018 and CAO since March 2023 [2] - Doug Howe, CEO of Designer Brands, expressed gratitude for Poff's contributions and wished him success in future endeavors [2] Leadership Transition - Mark Haley, the company's SVP, controller, and principal accounting officer since 2019, has been appointed as the interim principal financial officer effective November 1 [3] - Haley will collaborate closely with Poff and the financial leadership team to ensure a smooth transition [3] - The company plans to conduct an executive search for a permanent CFO [3] Background of Interim CFO - Mark Haley, aged 57, previously held the position of VP and controller from 2017 to January 2019 and has experience in leadership roles at Conn's, Inc., Coldwater Creek, Supervalu, and Deloitte & Touche LLP [4] Financial Performance - In the second quarter of fiscal 2025, Designer Brands reported a 4.2% decrease in net sales, totaling $739.8 million, down from $771.9 million in the same period last year [5] - The adjusted net income for the quarter was $16.7 million, translating to adjusted diluted earnings per share of 34 cents [5]

Core Insights - Caleres, Inc. is considered one of the most undervalued retail stocks, with fiscal Q2 2025 results showing consolidated sales of $658.5 million, a decrease of 3.6% year-over-year [1] - The Brand Portfolio sales also experienced a decline of 3.5%, while the company gained market share in women's fashion footwear despite a tariff impact of approximately $10 million [2] - Famous Footwear sales fell by 4.9%, with comparable sales down 3.4% [2] Financial Performance - Consolidated sales for Q2 2025 were reported at $658.5 million, reflecting a 3.6% decrease compared to the previous year [1] - Brand Portfolio sales decreased by 3.5%, indicating challenges in this segment [1] - Famous Footwear sales declined by 4.9%, with comparable sales down 3.4%, highlighting a struggle in maintaining sales momentum [2] Market Position - The company has seen gains in the women's fashion footwear market share, suggesting a potential area of strength despite overall sales declines [2] - Management noted a tariff impact of around $10 million, which may have influenced sales performance [2] Analyst Perspective - Following the earnings release, KeyBanc analyst Ashley Owens maintained a Hold rating on Caleres, Inc. without assigning a price target, indicating a cautious outlook [3] - The company operates as a global footwear retailer through its Brand Portfolio and Famous Footwear segments, focusing on sourcing, designing, and distributing footwear for all ages [3]

Core Insights - Uber Technologies, Inc. has formed a new partnership with Designer Brands Inc. to enhance its retail offerings through Uber Eats [1] Group 1: Partnership and Offerings - The partnership allows customers to order DSW footwear, accessories, and seasonal items via Uber Eats, with options for on-demand or planned delivery [2] - The product range includes popular brands such as Steve Madden, Adidas, Blundstone, and Goodr, catering to all age groups [2] - Some orders can be delivered within one hour, providing access to nearly 500 stores across the United States [2] Group 2: Membership Benefits - Members of Uber One can enjoy $0 delivery on eligible purchases, enhancing the value proposition for frequent users [3] - This initiative expands Uber Eats' retail offerings beyond traditional categories like household, fashion, beauty, and personal care [3] - Customers can track their orders in real-time through the Uber Eats app, improving the overall user experience [3]

Core Insights - Genesco has established the Journeys Global Retail Group to consolidate its Journeys, schuh, and Little Burgundy brands, focusing on the youth footwear market, particularly female customers [1] - The restructuring aims to enhance the company's global presence, unlock growth potential for brand partners, and elevate talent management [1] Company Overview - Genesco operates over 1,250 retail outlets across North America, the UK, and the Republic of Ireland, managing a diverse portfolio of owned and licensed brands [2] - Key leadership appointments have been made to support the new strategy, with Andy Gray appointed as CEO of the Journeys Global Retail Group [2] Leadership Background - Andy Gray has over 20 years of experience at Foot Locker in various senior roles, including global president and chief merchandising officer [3] - Chris Santaella has been appointed as chief merchandising officer of the Journeys Global Retail Group, bringing over 30 years of experience from Foot Locker [4] Strategic Vision - Genesco's leadership emphasizes the potential for growth in the youth market, aiming to strengthen brand awareness and enhance consumer experiences [5] - The unified global leadership structure is expected to maximize opportunities and improve market positioning [5]

Core Insights - Genesco has established the Journeys Global Retail Group, consolidating its Journeys, Schuh, and Little Burgundy brands to enhance its position as a leading youth footwear retailer focused on female customers [1] Leadership Changes - Andy Gray has been appointed CEO of the Journeys Global Retail Group, while Chris Santaella has been named Chief Merchandising Officer, overseeing product strategies across the new organization [2][4] - The existing leadership teams at Schuh and Little Burgundy will continue in their roles, reporting to the new group [2] Strategic Vision - Genesco's leadership emphasizes growth opportunities in various markets by enhancing brand awareness and consumer experiences, aiming for stronger market positioning and growth with brand partners [3] - The leadership of Gray and Santaella is seen as pivotal due to their successful track record in repositioning Journeys and their extensive experience in the footwear industry [3] Recent Performance - Genesco reported a 1% increase in net sales to $746 million in the fourth quarter, with Journeys contributing a 5% increase in sales [6] - In the first quarter of fiscal 2026, total net sales rose 3.6% to $474 million, again driven by a 5% increase at Journeys [6] - The second quarter saw total net sales increase by 4% to $546 million, with Journeys' net sales rising by 6% [6] Market Response - The target teen demographic is responding positively to new product categories, including lifestyle running, and the introduction of new brands like Hoka [7] - Customers at Journeys are willing to pay higher prices for desirable products, indicating a strong market demand despite economic uncertainties [7]

Core Points - Big 5 Sporting Goods Corp. is set to become a private company following shareholder approval of its acquisition by WSG Merger LLC, a subsidiary of Worldwide Golf Group [1][2] - The acquisition is valued at $112.7 million, which includes the assumption of $71.4 million in credit line borrowings [2] - Shareholders will receive $1.45 per share in cash as part of the acquisition agreement [2] Company Overview - Big 5 Sporting Goods operates 410 stores in the western U.S., with each store averaging 12,000 square feet [3] - The product mix includes athletic shoes, apparel, accessories, and a selection of outdoor and athletic equipment [3] Industry Context - The go-private deal for Big 5 follows other significant transactions in the retail sector, including Nordstrom and Skechers, indicating a trend in the industry [4] - The footwear sector has seen increased merger activity, with Dick's Sporting Goods acquiring Foot Locker for $2.4 billion and Caleres completing the purchase of Stuart Weitzman for $105 million [5]