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A $420 million CMBS loan backed by the 893,000-square-foot office tower at 51 West 52nd Street will exit special servicing after Harbor Group closed a negotiated extension.
Morningstar reported occupancy fell from 99% to 86% and cash flow dropped 37% below underwritten levels, though a source close to the deal says the building is now fully leased.
Harbor Group bought the Midtown tower from ViacomCBS for $760 million in 2021, the largest investment sale that year, and has since invested $150 million in upgrades.
A $420 million CMBS loan backed by 51 West 52nd Street, a 38-story, 893,000-square-foot Midtown office tower, will exit special servicing after sponsor Harbor Group International closed a negotiated loan extension, according to Commercial Observer. The loan, which backs the single-asset, single-borrower DBGS 2021-W52 deal, was transferred to special servicing ahead of its October 2026 maturity even though it still carried a 12-month extension option, per an alert from Morningstar Credit ******* ytics.

#group #extension

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The giant artificial intelligence company Anthropic has rolled out Claude for Financial Advisors, a suite of artificial intelligence connectors and what the company refers to as "workflow skills" designed to help advisors automate research, meeting preparation and documentation tasks.
Its new product includes connectors to custodians, ***** et managers and wealth technology providers, such as Charles Schwab, BlackRock, Addepar, Envestnet, iCapital, Orion, SS&C Black Diamond, Wealthbox, Wealth.com, Vanguard and Zocks, along with previously available integrations with Microsoft 365, Salesforce, DocuSign, Box, FactSet, S&P Global and Morningstar.
The platform includes skills for advisor onboarding, alternative investments briefing, compliance and AI policy review, estate and tax briefing, portfolio rebalance review, post-meeting notes and follow-up, pre-meeting preparation and prospect intake, according to Anthropic.
"We aren't trying to replace any of the tools out there," said Peter Nolan, head of ***** et and wealth management at Anthropic, during an interview with WealthManagement, when asked whether this puts Anthropic in the position of competing with and potentially upending the developing ecosystem of entrepreneurs and developers working with it and other major AI model providers.

#advisors

Cathie Wood, head of Ark Investment Management, often buys her favorite tech stocks when she sees a new opportunity.
That's what she did last week, pouring $27.9 million into Meta Platforms (META) as the company pushes deeper into AI.
Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500's return of 17.88% in the same period. So far this year, Wood's flagship Ark Innovation ETF (ARKK) is up 8.66% as of writing, while the S&P 500 surged 11.85%, Yahoo Finance data shows.
Wood gained a reputation after the Ark Innovation ETF delivered a rosy 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the ETF tumbled more than 60%.
Those swings have weighed on Wood's long-term gains. As of Sept. 11, her Ark Innovation ETF has delivered a five-year annualized return of -6.89%, while the S&P 500 has an annualized return of 11.42% over the same period, according to data from Morningstar.

#meta #last #period

Pierce Brosnan thinks the Lucifer star Tom Ellis could be the next James Bond. Ellis revealed what the former 007 star told him about potentially taking up the role of James Bond.
James Bond casting could have another contender, as Pierce Brosnan reportedly believes Ellis has what it takes to play the role. While talking about his upcoming drama CIA, Ellis told Metro U.K., "When I got the script, the character of Colin was this enigmatic tinderbox of many things that he has to sit on. The more research I did about the CIA, the more interested I was in playing him."
Ellis said his research for the role left him fascinated by the CIA and its work.
Ellis plays Pierce Brosnan's son in The Thursday Murder Club. When asked whether Brosnan gave him any advice for his new spy role, he said, "No, he didn't. But he did tell me he thought I'd make a good Bond, and I was like, 'Pierce, I think I'm probably too old now. But I'll take it from you, mate. I'll take it from you.'"
Tom Ellis is not currently among the actors widely rumored to play James Bond. His run as Lucifer Morningstar ended five years ago.

#pierce #brosnan #lucifer #told

The stock market has been so good for so long, that it's making some investors suspicious. The S&P 500 index (SNPINDEX: ^GSPC) has delivered a total return of 593% in the past 15 years. The tech-heavy Nasdaq-100 index has done even better with a total return of 1,150% during that time.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Can the good times on Wall Street really keep going? What if the artificial intelligence (AI) boom that has powered hundreds of billions of dollars of capital expenditure and investor excitement turns out to be overvalued and overhyped? What if we're overdue for a bear market?
During any given day, month, or year, the stock market can lose value. This is why day trading and short-term speculation can be so risky and unlikely to succeed. But I'm not focused on what happens in the stock market tomorrow or this year.
Any money I invest today is going to be left invested for the next 10 years or more. And as a long-term investor, I believe that no matter what happens next, as a long-term investor, it's a good decision to keep investing in the Vanguard Morningstar Total Stock Market ETF (NYSEMKT: VTI).

#Stock #good #investor

The US syndicated loan market returned 0.93% in August, exceeding July's performance as software loans rebounded to pare the sector's YTD loss to 2.60% and close the gap with the broader market.
August market highlights:
Loans returned 0.93% in August, according to the Morningstar LSTA US Leveraged Loan Index, the second-best showing in 12 months, led by software issuers.
Performing software loan prices gained 127 bps in August, to 87.73% of par, while non-software loans gained 22 bps, to 97.06.
YTD software returns have narrowed to negative 2.60%; software is the only industry segment with a market-value weight above 1% that is negative for the year. The overall index has gained 3.07% in 2026.

#loan #morningstar

The payment default rates of the Morningstar LSTA US Leveraged Loan Index (LLI) declined to 0.87% (by amount) and 1.17% (by count) in August as two companies rolled off the trailing 12-month window. There were two liability management exercises (LMEs) and one payment default during the month. The dual-track default rate (by count) at month-end was 2.88%, essentially unchanged from the 2.87% reading in July.
The distress ratio eased 39 bps to 6.50% on a broad rebound in bids, though distress remains elevated.
As of Aug. 31, the trailing 12-month default rates of the LLI were as follows:
Payment default rate by amount: 0.87%, down from 0.93% in July
Payment default rate by issuer count: 1.17%, down from 1.25% in July

#july #count #rate #rates

If you want to invest in stocks, one of the best strategies is to just "buy all the stocks" with low-cost index funds. Among all the exchange-traded funds (ETFs) that let you invest in the entire U.S. stock market, the Vanguard Morningstar Total Stock Market ETF (NYSEMKT: VTI) is one of the best.
The U.S. stock market has been on a strong run for the past 10 years, and because VTI owns 3,515 stocks representing publicly traded American companies of all sizes, it has captured those broader gains. Over the past 10 years, the Vanguard Morningstar Total Stock Market ETF has delivered an average annual return of 14.53%, using recent prices.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Let's see where VTI could be in 2036 based on past performance.
Over the past 10 years, VTI has delivered an average annual return of 14.53% for investors. That means if you had invested $10,000 in VTI 10 years ago, you'd have $38,832 today (at recent prices).

#total

EuroDry (EDRY) has surged nearly 350% over the past year, driven by strong technical momentum and robust ***** yst sentiment.
Shares set an all-time high at the end of August 2026.
EDRY maintains a 100% "Buy" technical opinion from Barchart.
Analysts rate EDRY as "Strong Buy," but Morningstar flags it as 18% overvalued, highlighting the need for disciplined risk management.
Valued at $141 million, EuroDry (EDRY) is an owner and operator of drybulk vessels and a provider of seaborne transportation for drybulk cargoes. It operates 11 dry bulk carriers across the Ultramax, Kamsarmax, Panamax, and Supramax classes.

#edry #strong #barchart

Steel and aluminum stocks surged and then retreated last week as the escalating trade war between the United States and Canada sent investors scrambling to reprice exposure to North American metals supply chains.
SLX gained 1.6% on Monday, Aug. 25, following the breakdown of U.S.-Canada trade talks, and the State Street Materials Select Sector SPDR (XLB) reached a new intraday record that session, topping the peak it had set in February. Shares of Nucor, Steel Dynamics, Cleveland-Cliffs, and Century Aluminum all climbed. The gains proved short-lived, however: by Friday's close, XLB had slipped into the red for the week and SLX was essentially unchanged, according to CNBC. Through Aug. 28, Morningstar data show SLX has gained more than 28% on the year and XLB more than 18%.
The swing reflects the complexity of a trade war between two countries whose metals industries are deeply intertwined. Dan Luttner, who serves as managing partner of the supply chain consulting firm NEOS by Argon & Company, characterized the initial stock move to CNBC as a repricing reflex rather than a durable signal. "The stock pop is a headline reflex, honestly — mills reprice to replacement cost the second a 50% wall goes up, so of course Nucor and Cleveland-Cliffs jumped," Luttner said. "But that's not the interesting question. The interesting question is who controls their feedstock inside the wall versus who's still exposed to it?"
Luttner noted that both Nucor and Cleveland-Cliffs use electric arc furnace technology whose inputs have no dependence on Canadian ore or slab, positioning them to capture tariff-driven pricing benefits without the same exposure. Cleveland-Cliffs stock is nonetheless in negative territory for 2026 because of balance sheet stress. Century Aluminum is a more complicated case: because domestic primary aluminum production is thin, the raw inputs that sustain it — alumina and semi-finished material — largely still flow across the Canadian border, undermining the protection the tariffs were meant to provide.
Atsi Sheth, chief credit officer at Moody's Ratings, said uncertainty will persist. "Expect much more of this uncertainty for some time to come," Sheth said. She added that U.S. steel companies hold a modest edge over their Canadian counterparts because the U.S. market is larger, but said the auto sector has no clear winner given how deeply integrated cross-border production is.

#cliffs #nucor

Red Violet (RDVT) demonstrates strong price momentum, with its shares up more than 40% over the past year.
RDVT stock is trading at a new all-time high.
Shares maintain a 100% "Buy" technical opinion from Barchart.
Despite being seen as slightly overvalued by Morningstar, RDVT maintains robust technical support and broad investor interest, powering its current upward trajectory.
Valued at $1.18 billion, Red Violet (RDVT) is a software and services company. It specializes in big data ******* ysis, providing cloud-based, mission-critical information solutions to enterprises.

#technical #barchart #morningstar

Demand for high-risk leveraged and inverse single-stock exchange-traded funds in the US may be losing some momentum after a rapid expansion in new products.
A volatile bull market has encouraged investors to seek products capable of magnifying daily moves in some of the market's most popular and volatile stocks. The surge in speculative offerings has been substantial, with leveraged products accounting for as much as half of all new ETF launches in June alone.
However, ****** ysts are increasingly questioning whether the pace of expansion can continue as competition intensifies and ****** ets become concentrated among a relatively small number of successful funds.
"The market for these is saturated and there's only so much money out there chasing this kind of product," said Morningstar ****** yst Daniel Sotiroff. "A few firms at the top end up commanding the lion's share of the money, and then there's a long tail of also-rans who are struggling to attract ****** ets."
ETF industry ****** ysts, including Sotiroff and Cerulli ****** ociates, generally consider between $50 million and $100 million in ****** ets within a fund's first one or two years as an important benchmark for long-term viability. Funds that remain below that range can find it more difficult for their sponsors to cover operating costs.

#volatile #market

Investors torn between the safety of mega-cap names and the upside of smaller, faster-growing companies have two low-cost options to consider: the Vanguard Morningstar Growth ETF (NYSEMKT:VUG) and the iShares Morningstar Small-Cap Growth ETF (NYSEMKT:ISCG). VUG leans into the largest, most dominant companies driving the U.S. economy, resulting in a very tech-heavy portfolio. ISCG casts a much wider net across smaller companies with high growth potential.
Beta
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ISCG
VUG

#nysemkt #beta

Cathie Wood, chief of Ark Investment Management, often trims her biggest winners after sharp rallies.
This week, she's selling Tempus AI (TEM), taking some shares off the table after the healthcare AI stock surged nearly 30% in days and became the second-largest holding in her fund.
Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500's return of 17.88% in the same period. So far this year, Wood's flagship Ark Innovation ETF (ARKK) is up 10.16% as of Aug. 26, while the S&P 500 surged 12.13%, Yahoo Finance data show.
Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.
Those swings have weighed on Wood's long-term gains. As of Aug. 26, her Ark Innovation ETF has delivered a five-year annualized return of -6.21%, while the S&P 500 has an annualized return of 11.42% over the same period, according to data from Morningstar.

#year #period

Target apologized Monday and removed a Halloween costume from sale after critics said it evoked Blackface imagery, sending Target stock down as much as 5% on Tuesday.
The product, sold under Target's Hyde and EEK Boutique brand as the "Kids' Glows Under Blacklight Circus Clown Halloween Costume," ignited social media criticism from shoppers who said its imagery recalled racist caricatures tied to the minstrel show tradition. "As a company, we know we got this wrong, and we are deeply sorry," Target said in a statement. "The costume is offensive and should never have been part of our ******* ortment."
Target declined to comment on who designed the costume or to provide details about the product approval process, according to Reuters. In an internal email viewed by Reuters, Chief Merchandising Officer Cara Sylvester told employees the item "never should have been in our ******* ortment."
The apology did not satisfy some stakeholders. Sheletta Brundidge, a Minneapolis entrepreneur who protested Target's DEI rollbacks last year, said Target "keeps showing us who they are." Brundidge, speaking to CNN, framed the costume as a consequence of those rollbacks: "You rolled back diversity," she said, "so who's in the room, now, to say 'hey, this is wrong?'" A post in the BlackPeopleofReddit community, which has 1.6 million members, urged a boycott of the retailer.
Tejal Patel, executive director of Target shareholder SOC Investment Group, called the costume "another example ... where Target has lost trust with its consumer base." Morningstar ******* yst Brett Husslein said the selloff exposed how precarious Target's market standing has become, pointing out that the chain must win customers through experience and goodwill rather than the low prices that drive shoppers to Walmart and Costco.

#target #brundidge #imagery #shoppers

Cathie Wood, head of Ark Investment Management, often adds to her favorite tech stocks when prices swing.
This week, she's buying **** eX (SPCX), continuing to build her position after the newly public stock went through a volatile stretch following its first earnings report.
Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500's return of 17.88% in the same period. So far this year, Wood's flagship Ark Innovation ETF (ARKK) is up 10.71% as of August 21, while the S&P 500 surged 12.11%, Yahoo Finance data shows.
Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.
Those swings have weighed on Wood's long-term gains. As of August 21, her Ark Innovation ETF has delivered a five-year annualized return of -6.23%, while the S&P 500 has an annualized return of 11.56% over the same period, according to data from Morningstar.

#flagship #period

By Juveria Tabassum and Nicholas P. Brown
Aug 19 (Reuters) - Target raised its annual sales forecast for a second time this year as efforts to cut prices and freshen merchandise yielded results, while its quarterly profit received a nearly $1 billion boost from tariff refunds.
It was the third straight strong quarter for Target, ‌and the results suggest the turnaround plan of new CEO Michael Fiddelke is taking root ahead of the all-important holiday shopping season, even as high fuel prices ‌pressure household budgets.
Quarterly comparable sales grew 3.8% and beat estimates of 2.5% growth in its earnings report, which Morningstar ****** yst Brett Husslein had flagged as a key test on whether Target can consistently execute on price, product mix and store experience.
The sales growth was powered by a 3.6% rise in traffic and an 8.7% jump in digital comparable sales, as shoppers opted for same-day delivery. However, ticket size was about flat.

#comparable

By Juveria Tabassum and Nicholas P. Brown
Aug 19 (Reuters) - Target raised its annual sales forecast for a second time this year as efforts to cut prices and freshen merchandise yielded results, while its quarterly profit received a nearly $1 billion boost from tariff refunds.
It was the third straight strong quarter for Target, ‌and the results suggest the turnaround plan of new CEO Michael Fiddelke is taking root ahead of the all-important holiday shopping season, even as high fuel prices ‌pressure household budgets.
Quarterly comparable sales grew 3.8% and beat estimates of 2.5% growth in its earnings report, which Morningstar ******* yst Brett Husslein had flagged as a key test on whether Target can consistently execute on price, product mix and store experience.
The sales growth was powered by a 3.6% rise in traffic and an 8.7% jump in digital comparable sales, as shoppers opted for same-day delivery. However, ticket size was about flat.

#results

Under Armour, Inc. (NYSE:UAA)'s long-running turnaround just got tougher. On August 7, the athletic clothing manufacturer forecasted a sharper annual revenue decline, and investors responded by sending shares down as much as 9% in early trade, showing the market's lack of patience for a recovery story that is being pushed further out.
The headline number is the forecast drop itself: Under Armour, Inc. (NYSE:UAA) now expects full-year revenue to fall by a mid-single-digit percentage, a significant decrease from its previous target of only a "slight decline." The breakdown is centered right where it hurts the most. Under Armour's North America sector, its largest market by far, saw revenue fall 9% to $609.8 million in the fiscal quarter ended June 30. During the post-earnings call, CFO Reza Taleghani didn't sugarcoat the forecast, telling investors that the company is expecting a more difficult consumer environment, notably in North America and parts of Asia Pacific, to continue through the second quarter.
The pressures behind the miss are largely macro, but they aggravate a company-specific issue. Ongoing inflation and a more difficult consumer-spending environment have caused buyers to be more careful about discretionary purchases such as apparel, footwear, and accessories, a trend that has impacted the whole sportswear industry, not just Under Armour, Inc. (NYSE:UAA). Morningstar ******* yst David Swartz put it bluntly: the sportswear market is struggling right now, and tariff-related cost constraints aren't helping. On top of the macro pressure is a competitive one. Buyers are increasingly moving toward newer, innovation-focused companies such as On and Hoka.
CEO Kevin Plank, who returned to the position in 2024 to create a turnaround, has pursued a strategy based on doing less, better. The company has reduced its product ******* ortment by about 25%, focusing on higher-priced items in sectors such as training, running, and team sports rather than competing across price points. Plank's own definition of the plan was pointed: consumers do not need more choices, but rather better ones. Under that idea, Under Armour, Inc. (NYSE:UAA) has introduced new goods geared in part at attracting younger Gen Z customers, including training shoes such as the "Surge 5" and "Radiant TR".
That strategic reset did not come cheap. Under Armour, Inc. (NYSE:UAA) stated it had spent $266 million on restructuring and transformation efforts thus far, with the overall turnaround plan scheduled to be completed by the end of the year.

#armour #north #buyers

Investing small amounts of money on a recurring basis can be as effective as putting in a large lump sum at once. It also has the added benefit of getting people used to saving and investing regularly, which can create good habits and reduce risk by spreading investments over time.
By saving and investing an average of $15 per day, an investor could build a portfolio worth over $1 million after 30 years. Here's how.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Having a go-to exchange-traded fund (ETF) to invest in regularly can be extremely valuable for investors, as it simplifies the decision-making process about where to invest each day, week, or month. A great option to consider is the Vanguard Morningstar Growth ETF (NYSEMKT: VUG), which, as its name suggests, focuses on top growth stocks. These are the types of investments that can generate significant returns over a long time frame. It includes big names such as Nvidia, Apple, Microsoft, and many other top stocks. They will carry some risk, but over a long time frame, they can potentially outperform the broader market.
Over the past decade, this ETF has generated total returns (including reinvested dividends) of approximately 406%, versus about 315% for an index tracking the S&P 500. That may not always be the case, but growth stocks are popular for their potential to deliver outsize returns, which is why the Vanguard Growth ETF can be a compelling long-term option and a go-to fund to invest in regularly.

#investing #regularly

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The second half of July brought news that several apartment properties moved into special servicing, while others had their values reduced.
Once again, Texas was at the epicenter of these transfers, though one property in Brooklyn, New York, is also facing challenges, according to a flurry of Morningstar reports.
Two Keener Investments properties in League City, Texas — Harbor Walk and The Shore — were transferred to special servicing after the Houston-based owner stated that it "could no longer come out of pocket for debt service and escrow shortages," according to a July 31 Morningstar report.
The properties are still listed on Keener's website. It did not reply to a request for comment from Multifamily Dive.

#july #texas #servicing

Cathie Wood, head of Ark Investment Management, likes to lock in gains when her tech darlings rally.
That's exactly what she's doing with Snowflake, trimming her position after the cloud software stock surged nearly 10% over the past five trading days ahead of earnings.
In 2025, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500's return of 17.88% in the same period. But so far this year, Wood's flagship Ark Innovation ETF (ARKK) is down 8.51% as of July 31, while the S&P 500 surged 9.41%, Yahoo Finance data shows.
Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.
Those swings have weighed on Wood's long-term gains. As of July 31, her Ark Innovation ETF has delivered a five-year annualized return of -9.75%, while the S&P 500 has an annualized return of 11.25% over the same period, according to data from Morningstar.

#wood #july #gains #five

Vanguard Russell 1000 Growth ETF (NASDAQ:VONG) offers heavy concentration in mega-cap technology leaders, while Vanguard Morningstar Small-Cap Growth ETF (NYSEMKT:VBK) provides a diversified mix of smaller growth companies at a slightly lower expense.
Investors often compare VONG and VBK when deciding between large-cap stability and small-cap growth potential. While both Vanguard funds target growth-oriented equities, the Russell 1000 fund tracks established American corporations, whereas the small-cap fund focuses on the next generation of businesses, leading to distinct risk profiles and sector weights.
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VONG

#nysemkt

Given the huge rally in S&P 500 stocks like Sandisk (SNDK) this year, it's no surprise semiconductor ETFs are thriving. But they're getting competition from oil ETFs.
Four of the top 10 actively traded nonleveraged ETFs this year are oil and energy related, says Morningstar Direct. That's exactly the same number of semiconductor ETFs that make the cut. In fact, $2-billion-in-assets United States Oil (USO) returned 74% this year, outperforming the 64% return of the top semiconductor ETF, First Trust Nasdaq Semiconductor (FTXL).
And shares of Marathon Petroleum (MPC) are up 90% this year. That outstrips the 2% gain by AI semiconductor juggernaut Nvidia (NVDA).
Unique trends are driving oil and semiconductor ETFs this year. And oil has gotten the upper hand in the past month.
"Oil's recent run is due to geopolitical risk premiums from Iran tensions and tech valuation digestion. Escalating war risks in the Middle East create immediate supply-shock fears, pushing oil commodity ETFs higher," said Todd Rosenbluth of TMX VettaFi. "Concurrently, heightened uncertainty triggers profit-taking in high-valuation growth ***** ets like chips, prompting a short-term rotation into traditional commodities."

#year #sandisk

Distressed investors are, by their nature, optimists. They must be, since they see bargains and opportunities where other investors fear to tread. True to form, recent conversations with a number of distressed players reveal a significant distressed opportunity set in the back half of 2026 in the face of a roaring US equity bull market and a vibrant US economy.
Beginning on a positive note, "the US economy is doing well and isn't likely to turn south in the next six to 12 months," says Jeremy Burton, managing director and portfolio manager at PineBridge Investments. Even the rise of oil prices isn't of great concern for Burton, as he believes that the hit to consumers from rising oil prices in one region of the country will be offset by a healthy oil-and-gas-based economy in another region. As a result, the opportunities are more sector-specific, he believes.
Concurring with Burton's relatively sunny view are Morgan Stanley strategists Vishwas Patka and Joyce Jiang, who, in a recent piece covering their mid-year outlook, said "capex growth and a resilient consumer support a stable macro environment with strong earnings, while attractive yields anchor robust [debt] demand." This bodes well for business growth and equity generally, the pair said.
That health is reflected in the numbers. PitchBook LCD reported on July 1 that the trailing 12-month default rate for the Morningstar LSTA US Leveraged Loan index was only 0.97% by dollar amount and 1.34% by issuer count. The default rate by count, including Liability Management Exercises (LMEs), was 2.77%.
But danger in the leveraged loan index lurks. The index's distress ratio by amount (defined as the share of loans trading below 80 cents on the dollar) rose 34 bps in June, to 6.87%. In fact, the distress ratio has trended higher over the past nine months after plumbing a near-term low of 2.59% in September 2025. The peak for 2026 is 7.23% in March, which was the result of six consecutive monthly increases and marked the highest level since the distress ratio hit 7.36% in December 2022, in the midst of a series of US fed funds rate hikes by the FOMC. Roughly 45% of the debt trading under 80 is in software-related sectors.

#distressed #ratio #leveraged

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Semiconductors to Stablecoins: Jan van Eck on 2026 Markets "He's still a gold bull for the next decade despite a near-term technical stumble, but he's stayed bearish on Bitcoin all year, partially due to mechanisms specific to bitcoin and partially because of its rising correlation to the Nasdaq. Where he does see life in crypto is stablecoins and corporate chains, as banks race to wall off their own blockchain turf." (ETF.com)
Is Passive Investing Sabotaging Fund Managers? "Index fund fans counter that claims of distortion are mostly sour grapes from fund managers struggling to outperform. For one thing, index funds do little trading of their own. Active managers' jobs might even get easier as they scrap over a smaller slice of the market." (WSJ)
These 15 Funds Cost Investors Billions Over the Past Decade "Seven of the top 15 funds on our list are in the trading-inverse equity category, which are designed to increase in value when a specific benchmark or ***** et type falls. These funds occasionally rise to the top by betting against the market; for example, many funds that bet against US stocks were up 15% or more in 2022. But because market returns are positive more often than not, the long-term results haven't been pretty." (Morningstar)
Goldman Pitches New Way for LPs to Fund Capital Calls "The move would give large investors interest on capital that has been committed but not yet called, at rates around 160 basis points to 210 basis points over the benchmark. In return, Goldman would free up capacity on its balance sheet." (FundFire)

#market #Bitcoin

NZS Capital, LLC, an investment management company, released its "NZS Growth Equity Strategy" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Equity markets delivered a strong performance in the second quarter of 2026, driven by demand for AI infrastructure, geopolitical stabilization, and positive earnings reports. The portfolio achieved a gross return of +24.96% and a net return of +24.76%, significantly outperforming the +14.79% return for the Morningstar Global Target Market Exposure Index. Overweight in Semiconductors, stock selection in areas like Software and Industrials, and zero exposure to Energy contributed to the Strategy's outperformance in the quarter. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, NZS Growth Equity Strategy highlighted Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor company that delivers data infrastructure solutions across the data center core, cloud, enterprise, and network edge. On July 20, 2026, Marvell Technology, Inc. (NASDAQ:MRVL) closed at $194.94 per share, reflecting a market capitalization of $174.97 billion. Marvell Technology, Inc. (NASDAQ:MRVL) posted a one-month return of -30.14%, while its shares gained 170.79% over the past 52 weeks.
NZS Growth Equity Strategy stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q2 2026 investor update:
"Those familiar with our strategy may know a key part of our process concerns reassessment of optional positions that outperform their way into the "middle" of the portfolio. If the team determines that the range of outcomes has narrowed enough for promotion to a resilient position, we add capital; otherwise, we trim the position back to optionality. While we might leave incremental upside on the table, we believe this strict reduction in overactive stocks with wide ranging outcomes allows us to continue benefiting from further upside without letting risk run. This quarter, the portfolio had five positions that worked their way into the middle – a few even ran all the way through the middle in a single day. This situation is unusual and perhaps symptomatic of the volatility in the market. In the cases of ARM Holdings, Marvell Technology, Inc. (NASDAQ:MRVL), Lattice Semiconductor, and Snowflake, we trimmed the positions back to optionality. For example, Marvell rallied significantly after Jensen Huang extolled the company as "the next trillion-dollar company" on stage at Computex in Taiwan. While we agree it's within the range of outcomes, in our view, Jensen's statement only resulted in the market applying a higher valuation to a stock whose fundamental range of outcomes remained unchanged; thus, we trimmed Marvell."

#technology #mrvl #market #Growth

NZS Capital, LLC, an investment management company, released its "NZS Growth Equity Strategy" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Equity markets delivered a strong performance in the second quarter of 2026, driven by demand for AI infrastructure, geopolitical stabilization, and positive earnings reports. The portfolio achieved a gross return of +24.96% and a net return of +24.76%, significantly outperforming the +14.79% return for the Morningstar Global Target Market Exposure Index. Overweight in Semiconductors, stock selection in areas like Software and Industrials, and zero exposure to Energy contributed to the Strategy's outperformance in the quarter. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, NZS Growth Equity Strategy highlighted Arm Holdings plc (NASDAQ:ARM) as a notable contributor. Arm Holdings plc (NASDAQ:ARM) is a UK-based technology company that develops and licenses central processing unit designs and related technologies for semiconductor companies and original equipment manufacturers. On July 20, 2026, Arm Holdings plc (NASDAQ:ARM) closed at $269.61 per share. One-month return of Arm Holdings plc (NASDAQ:ARM) was -26.41%, and its shares gained 72.27% over the past 52 weeks. Arm Holdings plc (NASDAQ:ARM) has a market capitalization of $286.87 billion.
NZS Growth Equity Strategy stated the following regarding Arm Holdings plc (NASDAQ:ARM) in its Q2 2026 investor update:
"Information Technology contributed the most to absolute returns, though Industrials and Communication Services also outperformed. Each of the top-five individual contributors to absolute returns were in the Semiconductor industry and, more importantly, in the AI infrastructure ecosystem. In addition to the improving outlook reflected in chips broadly, Arm Holdings plc (NASDAQ:ARM) shares were further lifted by the company's announced plan to develop its first in house chip, a CPU for AI workloads."
Arm Holdings plc (NASDAQ:ARM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held Arm Holdings plc (NASDAQ:ARM) at the end of the first quarter, compared to 33 in the previous quarter. Arm Holdings plc (NASDAQ:ARM) reported record revenue of $1.49 billion in the fourth quarter of fiscal 2026, up 20% year-over-year. While we acknowledge the potential of Arm Holdings plc (NASDAQ:ARM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

#quarter #investor #letter

NZS Capital, LLC, an investment management company, released its "NZS Growth Equity Strategy" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Equity markets delivered a strong performance in the second quarter of 2026, driven by demand for AI infrastructure, geopolitical stabilization, and positive earnings reports. The portfolio achieved a gross return of +24.96% and a net return of +24.76%, significantly outperforming the +14.79% return for the Morningstar Global Target Market Exposure Index. Overweight in Semiconductors, stock selection in areas like Software and Industrials, and zero exposure to Energy contributed to the Strategy's outperformance in the quarter. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, NZS Growth Equity Strategy highlighted Quanta Services, Inc. (NYSE:PWR). Quanta Services, Inc. (NYSE:PWR) is an infrastructure services company that provides engineering and construction services to utilities, energy infrastructure, and telecommunications projects. On July 20, 2026, Quanta Services, Inc. (NYSE:PWR) closed at $632.56 per share. One-month return of Quanta Services, Inc. (NYSE:PWR) was -9.93%, and its shares gained 60.17% over the past 52 weeks. Quanta Services, Inc. (NYSE:PWR) has a market capitalization of $94.92 billion.
NZS Growth Equity Strategy stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its Q2 2026 investor update:
"Those familiar with our strategy may know a key part of our process concerns reassessment of optional positions that outperform their way into the "middle" of the portfolio. If the team determines that the range of outcomes has narrowed enough for promotion to a resilient position, we add capital; otherwise, we trim the position back to optionality. While we might leave incremental upside on the table, we believe this strict reduction in overactive stocks with wide ranging outcomes allows us to continue benefiting from further upside without letting risk run. This quarter, the portfolio had five positions that worked their way into the middle – a few even ran all the way through the middle in a single day. This situation is unusual and perhaps symptomatic of the volatility in the market. Quanta Services, Inc. (NYSE:PWR) also ran into the middle during the quarter, and we ultimately decided to add capital and promote the position to resilient, reflecting our view that the fundamental range of outcomes for Quanta's business – a US provider of craft labor for electricity generation, transmission, and distribution infrastructure – has continued to narrow."

#quarter #Growth

NZS Capital, LLC, an investment management company, released its "NZS Growth Equity Strategy" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Equity markets delivered a strong performance in the second quarter of 2026, driven by demand for AI infrastructure, geopolitical stabilization, and positive earnings reports. The portfolio achieved a gross return of +24.96% and a net return of +24.76%, significantly outperforming the +14.79% return for the Morningstar Global Target Market Exposure Index. Overweight in Semiconductors, stock selection in areas like Software and Industrials, and zero exposure to Energy contributed to the Strategy's outperformance in the quarter. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, NZS Growth Equity Strategy highlighted stocks like Axogen, Inc. (NASDAQ:AXGN). Axogen, Inc. (NASDAQ:AXGN) is a biotechnology and medical services company that develops and commercializes technologies for peripheral nerve regeneration and repair. On July 20, 2026, Axogen, Inc. (NASDAQ:AXGN) closed at $39.48 per share. One-month return of Axogen, Inc. (NASDAQ:AXGN) was -11.66%, and its shares gained 214.83% over the past 52 weeks. Axogen, Inc. (NASDAQ:AXGN) has a market capitalization of $2.1 billion.
NZS Growth Equity Strategy stated the following regarding Axogen, Inc. (NASDAQ:AXGN) in its Q2 2026 investor update:
"New additions to the portfolio were optionality positions in Axogen, Inc. (NASDAQ:AXGN). Axogen provides nerve grafts used for peripheral nerve repair. Following BLA approval of their Avance nerve allograft and related positive momentum in insurance coverage, we think Axogen is highly asymmetric to a future where nerve repair becomes standard-of-care, including for patients undergoing a mastectomy or prostatectomy (PSA to look into Axogen's tech if you or someone you know could benefit). WuXi XDC is a China-based Contract Research, Development, and Manufacturing Organization (CRDMO) focused on bioconjugates, an exciting research area that is rapidly developing new therapies. The aforementioned U.S. BIOSECURE Act provided us an attractive entry point into this rapidly growing business and will also keep a lid on position size given the range of outcomes. In short, we think a modestly higher dose of this "quality growth" sector is good for our portfolio's health, and we've been incrementally expressing this view."
Axogen, Inc. (NASDAQ:AXGN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge fund portfolios held Axogen, Inc. (NASDAQ:AXGN) at the end of the first quarter, up from 26 in the previous quarter. While we acknowledge the potential of Axogen, Inc. (NASDAQ:AXGN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to be