Group 1 - The law firm Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Cogent Communications Holdings, Inc. [1] - The investigation focuses on whether Cogent Communications and its top executives made false or misleading statements or failed to disclose material information to investors [1] - Cogent Communications reported a nearly 6% year-over-year decrease in service revenue for Q3 2025 and announced a 98% cut in its dividend, leading to a nearly 35% drop in share price [3] Group 2 - Cogent Communications provides high-speed internet access, private network, and data center colocation space services [3] - Robbins Geller is recognized as one of the leading law firms in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 [4]

Core Thesis - Cogent Communications Holdings, Inc. is experiencing a bullish outlook despite recent challenges, with a focus on capital discipline and strategic asset monetization [1][6]. Financial Performance - As of December 2nd, CCOI's share price was $19.99, with trailing and forward P/E ratios of 94.04 and 5.00k respectively [1]. - The company recently cut its quarterly dividend from $1.01 to $0.02 to preserve capital while managing the $20 billion T-Mobile/Sprint fiber acquisition [2]. - The current stock price is $23.49, presenting a compelling risk/reward opportunity supported by operational momentum and strategic asset monetization [5]. Strategic Initiatives - The integration of T-Mobile/Sprint assets is progressing well, with EBITDA improving as operational efficiencies are realized [3]. - Cogent's data center portfolio expanded from 53 to 100 facilities post-acquisition, with plans to sell or lease 24 redundant centers, generating initial agreements worth $144 million [4]. - These divestitures are expected to accelerate deleveraging and unlock significant shareholder value once debt levels normalize [4]. Market Reaction - The market reacted sharply to the earnings call, primarily due to the dividend cut and suspension of share buybacks, but the company is focused on long-term capital discipline [2][6]. - Despite a 72.62% depreciation in stock price since previous coverage, the bullish thesis remains intact as efficiency gains progress [6].

Core Insights - Recurve Capital reported a strong performance in Q2 2025, achieving a gross return of +31%, significantly outperforming the S&P 500 (+10.6%) and Nasdaq (+17.8%) [1] - Year-to-date, the fund has returned +14.8% gross and +12% net [1] Company Analysis: Cogent Communications Holdings, Inc. (NASDAQ:CCOI) - Cogent Communications provides high-speed Internet access, private network, and data center colocation services [2] - The stock experienced a one-month return of +10.17% but has lost 46.54% of its value over the past 52 weeks, closing at $40.39 on October 2, 2025, with a market capitalization of $1.986 billion [2] - Cogent was identified as the largest detractor from Recurve Capital's performance year-to-date, despite expectations for future positive contributions [3] Hedge Fund Interest - Cogent Communications was held by 30 hedge fund portfolios at the end of Q2 2025, unchanged from the previous quarter [4] - While acknowledging Cogent's potential, the company believes that certain AI stocks present greater upside potential and lower downside risk [4]

Group 1 - Madison Small Cap Fund's second-quarter 2025 performance was impacted by the liberation day tariffs, which initially caused a decline in equities and treasuries, followed by a rebound due to a pause in tariff implementation and positive macroeconomic data [1] - The Russell 2000 Index increased by 8.5% for the quarter and is down only 1.79% year-to-date, while the Madison Small Cap Fund (class Y) returned 4.42% in the quarter, underperforming compared to the Russell 2000 and Russell 2500 [1] - The fund highlighted Cogent Communications Holdings, Inc. (NASDAQ:CCOI) as a key stock, which has seen a one-month return of 0.35% but a significant decline of 48.00% over the last 52 weeks, with a market capitalization of $1.852 billion as of September 17, 2025 [2] Group 2 - The underperformance of Madison Small Cap Fund was attributed to stock selection in Information Technology and Consumer Staples, with Cogent Communications Holdings, Inc. being the worst-performing IT stock [3] - Cogent Communications, which carries nearly 25% of the world's internet traffic, recently launched Wavelength Services aimed at providing high-capacity, low-latency networking connections, but the company slightly missed growth expectations for this service, leading to a sharp decline in stock price [3] - The company has been viewed as experiencing early growing pains with its new service, and the fund has taken this opportunity to increase its investment in CCOI, believing the market reaction to be an overreaction [3]

Group 1: Avista Corp. - Avista has a history of raising dividends for 22 consecutive years, with the most recent increase on Feb. 12, raising the quarterly payout from $0.475 to $0.49 per share, resulting in an annual figure of $1.96 per share [3] - The current dividend yield for Avista is 5.39% [3] - As of June 30, Avista's annual revenue was $1.96 billion, and Q2 2025 revenues were reported at $411 million with an EPS of $0.17, both below consensus estimates [4] Group 2: Cogent Communications - Cogent Communications has increased its dividend for 51 consecutive years, with the latest hike on May 8, raising the quarterly payout from $1.01 to $1.015 per share, equating to an annual figure of $4.06 per share [6] - The current dividend yield for Cogent Communications is 11.30% [6] - As of June 30, the company's annual revenue was $1 billion, and Q2 2025 revenues were $266.17 million, which missed the consensus estimate of $246.83 million, while the per-share loss of $1.21 was better than the consensus of $1.08 loss per share [7] Group 3: Mondelez International - Mondelez International is involved in the manufacturing, marketing, and selling of snack food and beverage products globally [8]