Core Viewpoint - Baron Asset Fund demonstrated strong performance in Q4 2025, outperforming the Russell Midcap Growth Index by 11.59 percentage points, primarily due to favorable stock selection [1] Fund Performance - The Baron Asset Fund returned 7.89% in Q4 2025, while the Russell Midcap Growth Index declined by 3.70% [1] - As of December 31, 2025, the Fund held 53 positions, with the 10 largest holdings accounting for 52.8% of net assets and the 20 largest holdings representing 73.3% of net assets [1] Key Holdings - Mettler-Toledo International Inc. (NYSE:MTD) was highlighted as a leading contributor to the Fund's performance, benefiting from improving sentiment in the life sciences tools sector [2][3] - Mettler-Toledo's stock closed at $1,380.88 per share on February 9, 2026, with a one-month return of -7.00% and a 52-week gain of 3.67% [2] Industry Insights - The strength in the healthcare sector was attributed to Mettler-Toledo, with favorable stock selection in financials coming from Arch Capital Group Ltd [3] - The positive sentiment towards life sciences tools companies was influenced by drug pricing agreements between biopharmaceutical companies and the Trump Administration, which were perceived as not materially impacting pharmaceutical businesses [3] - Mettler-Toledo is expected to benefit from reduced tariff threats against China, stabilization in the Chinese market, and accelerating demand in broader end-markets, with anticipated earnings growth in the mid-teens or better over the long term [3]

Mergers and Acquisitions - GreenShield has acquired Kii Health's Canadian mental health services segment, integrating it into its digital health platform GreenShield+ [1] - RFA Capital Holdings Inc. has rebranded to RFA Financial Inc. after acquiring Artis Real Estate Investment Trust in an all-share deal, with former Artis unitholders owning 68% of the combined company [2] - Navacord and Acera have completed their merger, creating one of Canada's largest privately held insurance and wealth advisory firms with $7.2 billion in insurance premiums and $7.5 billion in retirement assets [3] - ATB Financial has launched ATB Cormark Capital Markets following its acquisition of Cormark Securities Inc., expanding its capital markets capabilities [3] - Morguard Corp. has rebranded Lincluden Investment Management to Morguard Lincluden Global Investments after acquiring the firm, managing over $4 billion in assets [4] - Beazley has agreed to a $10.9 billion cash takeover offer from Zurich Insurance, representing a 60% premium to its closing share price [5] Financial Developments - Neo Financial has raised $68.5 million for its inaugural securitization program, allowing it to grow its lending portfolio significantly [2]

Group 1 - Howard Hughes Holdings Inc. is acquiring Vantage Group Holdings for $2.1 billion, marking its expansion into the specialty insurance sector [2][3] - The acquisition aims to diversify Howard Hughes Holdings' operations beyond real estate development, positioning it similarly to Berkshire Hathaway [2][4] - The funding for the acquisition will come from cash reserves and a loan of up to $1 billion from Bill Ackman's hedge fund, Pershing Square [3] Group 2 - The company is focused on developing large-scale, mixed-use master-planned communities and commercial and residential real estate across the U.S., with significant projects in Las Vegas, Houston, and Honolulu [5] - The strategy involves acquiring controlling stakes in smaller businesses in various sectors to enhance diversification [3]

Core Insights - The article discusses the potential of mid-cap stocks as attractive investment opportunities, particularly in the context of the "America First" agenda which aims to boost domestic manufacturing [2][3]. Industry Overview - The U.S. stock market is experiencing a shift with a growing interest in mid-cap stocks, which are expected to benefit from domestic revenue generation [2]. - Historically, mid-cap equities have outperformed both large-cap and small-cap stocks, although they have lagged behind large caps in the current year [3]. Hedge Fund Activity - Hedge funds are reportedly rotating out of large-cap stocks, with significant reductions in exposure to mega-cap stocks noted in Q3 2025 [4]. - Major hedge funds, such as Bridgewater Associates, have cut holdings in prominent stocks while increasing investments in mid-cap companies [4]. Methodology for Stock Selection - The article outlines a methodology for selecting high-growth mid-cap stocks, focusing on companies with market capitalizations between $2 billion and $10 billion and at least 30% revenue growth over five years [6]. Featured High-Growth Mid-Cap Stocks - **LifeStance Health Group, Inc. (NASDAQ:LFST)** - Market Capitalization: $2.82 billion - Revenue Growth (5Y): 36.75% - Analysts have raised price targets for LFST, indicating a positive outlook despite industry challenges [9][10][11][12]. - **Veracyte, Inc. (NASDAQ:VCYT)** - Market Capitalization: $3.29 billion - Revenue Growth (5Y): 34.46% - The company forecasts sales of $570 million to $582 million in 2026, exceeding consensus estimates [13][14][15]. - **Kinsale Capital Group, Inc. (NYSE:KNSL)** - Market Capitalization: $9.28 billion - Revenue Growth (5Y): 34.25% - Analysts have mixed views, with one firm initiating coverage with an Overweight rating while another lowered its price target due to anticipated near-term declines [16][17][18][19].

Core Insights - Bill Ackman is transforming Howard Hughes Holdings Inc. into a diversified holding company by acquiring Vantage Group Holdings for $2.1 billion, aiming to replicate Berkshire Hathaway's model [1][6][8] Acquisition Details - The acquisition of Vantage Group is valued at approximately 1.5 times its estimated year-end 2025 book value, with the deal expected to close in the second quarter of 2026, pending regulatory approvals [3] - Howard Hughes will finance the $2.1 billion purchase using a mix of cash on hand and up to $1 billion from Pershing Square through newly issued preferred stock, which is non-interest bearing and non-voting [4] Market Reaction - Following the announcement of the acquisition, Howard Hughes shares increased by 3%, indicating positive investor sentiment [5] Strategic Shift - The acquisition is part of a broader strategy to pivot Howard Hughes beyond real estate development, which includes the recent spinoff of Seaport Entertainment Group [9] - Ackman has emphasized the importance of finding a management team or acquiring an existing company to serve as the core of this new diversified platform [3]

Core Insights - Onex Corporation has fully exited its investment in Ryan Specialty Holdings, selling approximately 4.1 million shares for proceeds of $226 million [1][2] - The total proceeds realized by Onex from its investment in Ryan Specialty amount to $1.2 billion, representing a 3.8x Multiple of Capital and an Internal Rate of Return (IRR) of 49% [2] Company Overview - Onex Corporation manages approximately $57.2 billion in assets, with $8.5 billion being its own investing capital [4] - The company has a diverse investor base, including public and private pension plans, sovereign wealth funds, banks, insurance companies, family offices, and high-net-worth individuals [4] - Onex is listed on the Toronto Stock Exchange under the symbol ONEX [5]

Financial Data and Key Metrics Changes - Total revenue grew by 23% year-over-year to $855 million, driven by organic revenue growth of 7.1% and M&A contributions adding 13 percentage points to the top line [3][29] - Adjusted EBITDAC increased by 24.5% to $308 million, with an adjusted EBITDAC margin expanding by 50 basis points to 36.1% [3][29] - Adjusted earnings per share rose by 13.8% to $0.66, with an adjusted effective tax rate of 26% for the quarter [29][30] Business Line Data and Key Metrics Changes - The wholesale brokerage specialty performed well, particularly in casualty, with strong new business and high renewal retention [12][15] - Property pricing saw a rapid decline, especially in June, leading to expectations of a modest decline in the property book for the full year [13][31] - The casualty practice experienced excellent growth, particularly in areas such as transportation, public entities, and healthcare, contributing significantly to overall growth [15][16] Market Data and Key Metrics Changes - The property market is facing significant headwinds due to declining pricing, with average reductions of 20% to 30% noted in June [40][66] - Despite the challenges in property, the flow of business into the specialty and E&S market remained strong, supporting overall growth [21][66] - The company anticipates that elevated catastrophe losses will sustain the need for E&S property solutions in the long term [14][15] Company Strategy and Development Direction - The company is focused on expanding its total addressable market through strategic M&A, enhancing capabilities, and broadening its international footprint [6][24] - Investments in key talent and new initiatives are expected to drive growth in the near, medium, and long term, with a goal of achieving double-digit organic growth [6][9] - The strategic alliance with Nationwide Mutual is being renewed, with expectations for significant growth in alternative risk offerings [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current headwinds and emphasized the importance of strong casualty performance to offset property pricing declines [11][41] - The outlook for casualty lines remains optimistic, with expectations for continued growth driven by firming in niche markets [17][71] - Management acknowledged macroeconomic uncertainties impacting construction but remains committed to long-term growth targets [31][34] Other Important Information - The company closed three acquisitions recently, including JM Wilson, which is expected to enhance its binding authority and transportation offerings [22][24] - The M&A pipeline remains robust, with a focus on strategic, accretive opportunities that align with the company's growth strategy [22][90] - The company is targeting a 35% margin by 2027, supported by its differentiated business model and strong relationships with trading partners [34][46] Q&A Session Summary Question: Insights on property pricing declines in June - Management noted a rapid decline in property pricing, with expectations that these trends will continue for the remainder of the year, leading to a modest decline in the property book [39][66] Question: Impact of investments on margins - The tightening of margins is attributed to property pricing declines and investments in talent for initiatives like Ryan Re, with no specific dollar value provided for these investments [42][44] Question: Outlook for casualty lines - Management remains bullish on casualty lines, expecting continued growth despite property market challenges, with strong performance noted in various niches [71][97] Question: Revenue benefits from the Nationwide deal - While specific revenue figures were not disclosed, management expressed confidence in the growth potential from the Nationwide partnership, particularly in reinsurance underwriting [54][56] Question: M&A environment and future cash flow utilization - The M&A pipeline is strong, and management is optimistic about using free cash flow for future acquisitions while maintaining prudent leverage [86][90]

Acacia Research (ACTG) FY Conference Summary Company Overview - Acacia Research has transitioned from an intellectual property business to a value-based acquirer of companies, focusing on creating a diversified portfolio of assets [2][3] - The company has a book value of approximately $577 million, translating to about $6 per share, with $340 million in cash and public securities [4] Financial Performance - Acacia generated $222 million in revenue and $61 million in EBITDA, with $40 million of EBITDA related to its former intellectual property business [5] - The company operates with no debt, emphasizing a strong financial position [5] Investment Strategy - The management team, led by the CEO with a private equity background, focuses on acquiring undervalued businesses, particularly in contrarian sectors [6][8] - Acacia aims to improve the operational efficiency and profitability of acquired businesses, emphasizing hands-on management rather than passive ownership [10][11] - The company has seen a significant number of acquisition opportunities, evaluating 350 businesses last year and 280 so far this year, but remains selective [9][50] Recent Acquisitions - Acacia has made strategic acquisitions, including Benchmark Energy and Deflecto, to build a scaled oil and gas platform and diversify its portfolio [15][22] - The acquisition of Benchmark was based on identifying dislocation in the oil and gas market, focusing on cash flow generation rather than traditional valuation metrics [17][19] - Deflecto was acquired as a collection of three unrelated businesses, with plans to streamline operations and enhance value through cost-cutting and management alignment [22][24] Operational Focus - The company emphasizes operational improvements and continuous enhancement of acquired businesses, aiming to generate cash flow and increase margins [11][20] - Acacia's approach includes leveraging existing management expertise and operational partners to drive performance in acquired companies [8][26] Market Position and Future Outlook - Acacia is exploring opportunities in specialty lending and insurance, indicating a strategic focus on markets with limited capital flow [51][52] - The company is cautious about entering new markets, preferring to build around existing positions and leverage its team's expertise [54] - Acacia aims to unlock trapped value in its portfolio, with a long-term vision of growing into a formidable public holding company with multiple large businesses [42][43] Conclusion - Acacia Research is positioned as a value-oriented acquirer with a strong financial foundation and a clear strategy for operational improvement and growth through selective acquisitions [34][55]

Core Insights - The article highlights the significant performance of recent IPOs, particularly Circle's record-breaking debut, which saw a first-day increase of 168% and ended the week with a 247% rise [1][2]. Group 1: Recent IPO Performance - Circle Internet Group (CRCL) raised $1.1 billion at a market cap of $7.9 billion, with a first-day return of 168% and a total return of 247% by the end of the week [2][3]. - Omada Health (OMDA) raised $150 million at a market cap of $1.2 billion, achieving a first-day return of 21% [2][3]. - The article notes that Circle's USDC stablecoin holds nearly one-third of the market share, positioning the company to benefit from favorable trends in the cryptocurrency sector [2]. Group 2: Upcoming IPOs - Chime (CHYM) plans to raise $800 million with a projected market cap of $10.5 billion, reporting 8.6 million active members as of March 31, 2025 [6]. - Voyager Technologies (VOYG) aims to raise $303 million with a market cap of $1.6 billion, focusing on defense, national security, and space solutions [7]. - Ategrity Specialty Insurance (ASIC) plans to raise $100 million with a market cap of $719 million, specializing in excess and surplus insurance products for small and medium-sized enterprises [8]. Group 3: New Filings - Three IPOs and two SPACs submitted initial applications last week, including Aura Minerals (AUGO) seeking $100 million, CoastalSouth Bancshares (COSO) seeking $80 million, and Gifts International (GINT) seeking $6 million [3][5]. - HCM III Acquisition (HCMAU) and Cantor Equity Partners II (CEPC.RC) are the two SPACs seeking $220 million and $200 million, respectively [4][5].

Core Insights - Palomar Holdings Inc. (PLMR) is experiencing a short-term bullish trend, trading above its 50-day simple moving average (SMA) with a current share price of $161.54, down 2.1% from its 52-week high of $165.00 [1] - The company aims to be among the top 10 crop premium writers in the U.S. by 2025, projecting crop premiums to grow to $500 million in the intermediate term [2] - PLMR has gained 53% year-to-date, outperforming the industry, sector, and the Zacks S&P 500 composite [5] Financial Performance - PLMR's price-to-earnings ratio stands at 5.46X, significantly higher than the industry average of 1.56X, indicating that shares are trading at a premium [9] - The Zacks average price target for PLMR is $174.50 per share, suggesting a potential upside of 9.7% from the last closing price [11] - The Zacks Consensus Estimate for 2025 earnings is $6.95, reflecting a 36.5% year-over-year increase, with revenues projected to rise by 41.5% to $777.4 million [12] Growth Drivers - PLMR's return on equity is 20.6%, outperforming the industry average of 7.8%, while return on invested capital (ROIC) is 19.9%, compared to the industry average of 5.9% [14] - The company’s fee-based platform, PLMR-FRONT, is expected to drive medium-term growth, enhancing its earnings foundation [15] - Increasing policy volumes, strong retention rates, geographic expansion, and new partnerships are anticipated to boost premiums, with crop insurance projected to contribute around $200 million by 2025 [16] Strategic Initiatives - PLMR identifies Surety as a long-term growth opportunity, providing diversification and stability [17] - The company maintains a strong capital position with a debt-free balance sheet and is executing share buybacks as part of its shareholder return initiatives [19] - PLMR is positioning itself as a key player in the crop insurance sector, with diverse products and strategic partnerships fueling its growth momentum [20]