Healthcare Fund Outperforms Benchmark with Strategic Investments and IPO Participations
This report details the strong performance of a healthcare fund, which exceeded its benchmark. Key drivers include successful IPO participations, specifically in Kailera Therapeutics and Seaport Therapeutics. The fund also strategically closed positions due to takeovers and is now focusing on SMID-cap innovation for future growth opportunities, leveraging reset valuations and improving market sentiment.
Emerging Markets Quarterly Review: AI Infrastructure and Geopolitical Shifts
This report details the performance of frontier emerging markets in Q2 2026, highlighting the impact of AI infrastructure development and shifting geopolitical landscapes. It covers a fund's underperformance relative to its benchmark, driven by a non-held Vietnamese real estate stock, while noting strong earnings and revenue growth across various sectors. Investor sentiment improved following reduced political uncertainty in Peru, and structural demand for electricity is expected to support revenue growth for key suppliers.
Acadia's Remlifanserin Trial: A Risky Bet on Alzheimer's Psychosis
Acadia Pharmaceuticals is set to release Phase 2 trial results for remlifanserin, targeting Alzheimer's psychosis, in the coming months. Skepticism arises due to the drug's mechanism of action. Despite this, Acadia's financial stability, bolstered by existing approved drugs generating substantial revenue, may cushion the impact of a potential trial failure. However, a significant stock devaluation is possible if the results are overtly negative.
Kenvue and Kimberly-Clark: A Merged Future
Kenvue Inc. receives a "soft buy" rating as its merger with Kimberly-Clark Corporation moves closer to completion. Recent results for KVUE show strong revenue and profit growth, with synergies from the $32 billion acquisition estimated to be $2.1 billion annually. Despite some remaining regulatory hurdles, both companies are considered attractive investments given current valuations and the promising merger prospects.
THE Process
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Emerging Markets Quarterly Review: AI Infrastructure and Geopolitical Shifts
This report details the performance of frontier emerging markets in Q2 2026, highlighting the impact of AI infrastructure development and shifting geopolitical landscapes. It covers a fund's underperformance relative to its benchmark, driven by a non-held Vietnamese real estate stock, while noting strong earnings and revenue growth across various sectors. Investor sentiment improved following reduced political uncertainty in Peru, and structural demand for electricity is expected to support revenue growth for key suppliers.
Acadia's Remlifanserin Trial: A Risky Bet on Alzheimer's Psychosis
Acadia Pharmaceuticals is set to release Phase 2 trial results for remlifanserin, targeting Alzheimer's psychosis, in the coming months. Skepticism arises due to the drug's mechanism of action. Despite this, Acadia's financial stability, bolstered by existing approved drugs generating substantial revenue, may cushion the impact of a potential trial failure. However, a significant stock devaluation is possible if the results are overtly negative.
Kenvue and Kimberly-Clark: A Merged Future
Kenvue Inc. receives a "soft buy" rating as its merger with Kimberly-Clark Corporation moves closer to completion. Recent results for KVUE show strong revenue and profit growth, with synergies from the $32 billion acquisition estimated to be $2.1 billion annually. Despite some remaining regulatory hurdles, both companies are considered attractive investments given current valuations and the promising merger prospects.
Module 04
Curated Narratives
Copart Inc. Faces Challenges But Maintains Long-Term Potential
Copart Inc. is navigating short-term challenges, including rising insurance costs, competition from IAA, and the emergence of autonomous vehicles. However, the company benefits from a strong network effect and a global presence. Its ownership of real estate, extensive international buyer network, and a potential acquisition of CCC reinforce its competitive advantages, potentially mitigating the bargaining power of insurers. Recent leadership changes and significant share buybacks reflect management's confidence. With a valuation of 20 times earnings and 14 times EV/EBITDA, Copart stock offers attractive double-digit return potential for long-term investors.
By David Rubenstein•Aug 24, 2026
The Growing Influence of Fiscal Policy on Monetary Stability
This article explores the increasing impact of fiscal policy on monetary policy in major economies, particularly the US and Japan. It highlights how aggressive government spending, like Japan's recent investment plan, can destabilize financial markets, leading to currency fluctuations and pressure on central banks. The text also touches upon the tensions between treasury departments and central banks regarding foreign exchange interventions, underscoring the risk of monetary policy being subordinated to fiscal objectives and the potential for market volatility if policy direction remains unclear.
By Morgan Housel•Aug 24, 2026
Telix Pharmaceuticals: Strategic Advancements and Future Prospects in Radiopharmaceuticals
Telix Pharmaceuticals has significantly recovered, achieving profitability and projecting substantial revenue growth to nearly a billion dollars by fiscal year 2026. This upward trajectory is fueled by strong precision medicine sales and a robust pipeline of radiopharmaceutical innovations. Key upcoming milestones include critical FDA decisions for brain and kidney cancer imaging agents, alongside ongoing pivotal trials for prostate cancer therapies. Despite facing regulatory scrutiny from the SEC, the company's operational momentum and recent capital raise through convertible bonds suggest a promising outlook, advocating for a cautious yet optimistic investment approach.
By Morgan Housel•Aug 24, 2026
WW International Stock Upgrade: From Sell to Hold
WW International has been upgraded from a 'SELL' to a 'HOLD' rating, reflecting stabilizing operational metrics and a positive shift in cash flow. Despite growth in key segments like Core+ and Clinical, overall revenue and EBITDA projections indicate a year-over-year decline. The company faces stiff competition, which could limit future growth and pricing power. While the current valuation seems reasonable, sustained EBITDA growth is essential for further upside.
By Michele Ferrero•Aug 24, 2026