On Thursday, Franklin Street Advisors disclosed that it sold out its entire position in Lululemon Athletica during the third quarter in an estimated $22.8 million transaction.What HappenedFranklin Street Advisors reported in a Securities and Exchange Commission filing released on Thursday that it exited its entire stake in Lululemon Athletica (LULU -0.64%) during the third quarter. The fund sold all 95,891 shares, resulting in an estimated transaction value of $22.8 million for the period ended September 30 ...

Group 1: JB Global Capital Fund Performance - JB Global Capital's fund gained 38.4% in Q3 2025, reaching an all-time high at quarter-end [1] - Since its inception on January 3, 2023, the fund has returned 76.4%, significantly outperforming its benchmark [1] - The strong performance is attributed to a heavy overweight in Chinese equities throughout 2023 and 2024 [1] Group 2: Lululemon Athletica Inc. Overview - Lululemon Athletica Inc. designs, distributes, and retails athletic apparel, footwear, and accessories [2] - The stock had a one-month return of 5.45% but lost 36.10% over the last 52 weeks, closing at $174.82 per share with a market capitalization of $20.732 billion on October 8, 2025 [2] - JB Global Fund opened a position in Lululemon during Q3 2025, recognizing its premium athletic apparel market position and community engagement initiatives [3] Group 3: Hedge Fund Interest in Lululemon - Lululemon is not among the 30 most popular stocks among hedge funds, with 55 hedge fund portfolios holding the stock at the end of Q2, up from 48 in the previous quarter [4] - While Lululemon has investment potential, certain AI stocks are viewed as having greater upside potential and less downside risk [4]

Bunzl Update / Briefing Summary Company Overview - **Company**: Bunzl (OTCPK:BZLF.Y) - **Revenue**: £12 billion - **Presence**: 32 countries, operating in six sectors - **Acquisition History**: Over 230 deals since 2004, with £6 billion of committed spend [1][2] Key Points on Acquisition Strategy - **Core of Business**: Acquisitions are central to Bunzl's growth strategy, contributing two-thirds of group revenue growth over the last decade [2][3] - **Market Characteristics**: Bunzl operates in large, fragmented markets with strong cash generation, making acquisitions an attractive growth route [2][4] - **Customer Relationships**: The stickiness of customer relationships reduces the risk of disruption from changing suppliers, enhancing acquisition appeal [2][4] Sector-Specific Insights - **Safety Sector Growth**: Through over 50 acquisitions, Bunzl has built a safety sector with nearly £2 billion in revenue, yet holds a low single-digit market share, indicating significant growth potential [3][4] - **Expansion Opportunities**: Bunzl sees potential for growth in various markets, including Italy (£1 billion opportunity in safety) and countries like Sweden and Greece [6][8] Acquisition Process and Methodology - **Deal Origination**: Approximately 75% of deals originate from internal contacts, emphasizing a decentralized and entrepreneurial culture [11][12] - **Evaluation Criteria**: A nine-point template is used to assess potential acquisitions, focusing on financial health, management quality, and cultural fit [17][18] - **Execution Discipline**: Bunzl maintains a rigorous review process, with the Executive Committee reviewing around 280 businesses over the last five years, resulting in 70 signed deals [17][19] Financial Metrics and Performance - **Return Expectations**: Bunzl expects acquisitions to achieve project WACC (weighted average cost of capital) within two to three years, with many deals surpassing this in the first year [19][20] - **Average Deal Size**: The average deal size over the last five years has been around £40 million, focusing on bolt-on opportunities [9][20] Integration and Synergies - **Onboarding Process**: Emphasizes respect for acquired businesses, with a focus on operational support and realizing purchasing synergies [14][15] - **Synergy Types**: Three main types of synergies identified: purchasing synergies (immediate), revenue synergies (cross-selling), and cost synergies (post-integration) [86][88] Market Outlook - **Future Prospects**: Despite a quieter 2025 in terms of M&A activity, there is optimism for 2026 as sellers are beginning to prepare for transactions [59][60] - **Continued Focus**: Bunzl aims to replicate its successful acquisition model across various fragmented markets, particularly in Continental Europe [37][38] Seller Perspectives - **Cultural Fit**: Sellers emphasize the importance of cultural alignment and the assurance that their businesses will be well cared for post-acquisition [39][40] - **Support and Growth**: Acquired businesses report significant improvements in operational capabilities and access to resources, enhancing their growth potential [43][45][48] Conclusion - Bunzl's disciplined approach to acquisitions, strong market presence, and focus on cultural fit position the company well for continued growth through strategic acquisitions in fragmented markets. The emphasis on operational support and integration further enhances the value proposition for both Bunzl and its acquisition targets.

Middle Coast Investing, an investment advisor firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for Middle Coast Investing. Its collective portfolio outperformed the S&P 500 and is ahead of benchmarks year to date. In Q3 2025, the US Portfolios returned 9.6% compared to 7.8% for the S&P 500. It’s Core U.S. portfolios returned 10% while the Russell 2000 returned 12%, the S&P 600 returned 8.7% and the Nasdaq generated 11.2% for ...

Industry Overview - The Retail - Apparel and Shoes industry shows resilience amid macroeconomic challenges, driven by evolving consumer preferences and strong brand adaptability [1] - Key factors influencing the industry include fashion trends, consumer spending habits, economic dynamics, and seasonal variations [3] - The industry faces opportunities and challenges, requiring continuous product innovation and effective marketing while contending with fierce competition and price sensitivity [3] Key Trends - Consumer spending remains strong, with U.S. retail sales increasing by 0.6% in August, and clothing store sales rising by 1% month-over-month [4] - The Federal Reserve's interest rate cuts have lowered borrowing costs, enhancing consumer flexibility for discretionary spending [4] - Retailers are expected to see increased demand during the holiday season, creating opportunities for stronger sales and revenue growth [4] Company Highlights - Deckers Outdoor Corporation, Boot Barn Holdings, Zumiez Inc., and Genesco Inc. are identified as attractive investment opportunities due to their disciplined execution and digital strength [2] - Genesco is experiencing growth driven by a refreshed product mix and strategic investments, with a projected sales growth of 3.7% and EPS growth of 71.3% [17][18] - Zumiez shows resilience with consistent comparable sales growth and a projected sales growth of 3.4% and EPS growth of 566.7% [21][22] - Boot Barn is expanding its store base and leveraging AI-powered retail innovation, with projected sales growth of 13.3% and EPS growth of 12.2% [25][26] - Deckers is performing well with its brands HOKA and UGG, projecting a sales growth of 9% [29][31] Financial Performance - The Zacks Retail - Apparel and Shoes industry ranks 80, placing it in the top 33% of over 250 Zacks industries, indicating positive near-term prospects [8][9] - The industry has underperformed the broader Zacks Retail-Wholesale sector and the S&P 500 over the past year, declining by 2.9% compared to the S&P 500's growth of 18.9% [11] - The industry is currently trading at a forward P/E of 17.9X, lower than the S&P 500's 23.36X and the sector's 24.82X [14]

On Holding AG (NYSE:ONON) is one of the best most oversold large cap stocks so far in 2025. On September 17, UBS analyst Jay Sole maintained a Buy rating on On Holding AG (NYSE:ONON) and set a price target of $79.00. Why On Holding AG (ONON) Surged Yesterday Morgan Stanley also maintained a Buy rating on On Holding AG (NYSE:ONON) on September 12, setting a price target of $65.00. Similarly, Bernstein analyst Aneesha Sherman maintained a Buy rating on On Holding AG (NYSE:ONON) on September 9 and set a pr ...

Lululemon Athletica Inc. (NASDAQ:LULU) is one of the 12 Best Widow and Orphan Stocks to Buy According to Analysts. Needham Downgrades Lululemon Athletica Inc. (LULU) to Hold Copyright: halfpoint / 123RF Stock Photo On September 25, Needham downgraded Lululemon Athletica Inc. (NASDAQ:LULU) to Hold, warning that growing challenges were offsetting its strong brand and 59.1% gross margins. After remaining unchanged in Q4 2024, North American comparable sales dropped 1% and 3% in the first two quarters of 20 ...

Diamond Hill Capital, an investment management company, released its “Select Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets rebounded from a sharp downturn at the start of April following the President’s “Liberation Day” tariffs announcement. As measured by the Russell 3000 Index, US stocks rose approximately 11%. Large-cap stocks saw the highest increase this quarter, rising just over 11%, while small-cap and mid-cap stocks gained approximately 8.5% each ...

Lululemon Athletica (LULU) is a Zacks Rank #5 (Strong Sell) despitethe company recently posted a solid beat and the stock has sold off as a result.  This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.Description                                              lululemon athletica, Inc. engages in the business of designing, distributing, and retailing technical athletic apparel, footwear, and accessories. It operates through the following segments: Company-Oper ...

Core Insights - lululemon athletica inc. (NASDAQ:LULU) has seen a significant decline in stock price, down 50% from around $334 in early June, raising questions about whether to hold or sell [1] - Jim Cramer expressed skepticism about lululemon's differentiation in the market, particularly in light of competition from Costco, suggesting that the stock may be too expensive [1][2] - Cramer recommended considering Gap as a more favorable investment option, especially with its potential turnaround of the Athleta brand [2] Company Overview - lululemon designs and sells athletic apparel, footwear, and accessories for activities such as yoga, running, and training under its brand [2] - The company has faced legal challenges, including a lawsuit against Costco, which Cramer criticized, indicating a shift in his perception of lululemon [2] Investment Perspective - While lululemon has potential as an investment, there are other sectors, particularly AI stocks, that may offer greater upside potential and lower downside risk [2]