Latest news with #outperformance
Bloomberg
6 days ago
- Business
- Bloomberg
Japan, Europe Have Chance to Catch Up With US: Schroders
Remi Olu-Pitan, multi-asset growth and income head at Schroders, says international markets, such as Europe and Japan, may have the opportunity to catch up with the US. "These markets are still undervalued relative to the US," Olu-Pitan tells Bloomberg Television. "I think there's a premium of ten-plus percent in terms of outperformance," she adds. (Source: Bloomberg)
Yahoo
01-07-2025
- Business
- Yahoo
What Makes Pinnacle Financial Partners (PNFP) a Long-Term Bet?
Riverwater Partners, an investment management company, released its 'Sustainable Value Strategy' Q1 2025 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, in the first quarter. The relative outperformance was primarily driven by positive stock selection, while the allocation effect also contributed positively. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Riverwater Partners Sustainable Value Strategy highlighted stocks such as Pinnacle Financial Partners, Inc. (NASDAQ:PNFP). Headquartered in Nashville, Tennessee, Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) is a bank holding company for Pinnacle Bank. The one-month return of Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) was 3.76%, and its shares gained 39.44% of their value over the last 52 weeks. On June 30, 2025, Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) stock closed at $110.41 per share, with a market capitalization of $8.563 billion. Riverwater Partners Sustainable Value Strategy stated the following regarding Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) in its Q1 2025 investor letter: "We recycled the Carlyle proceeds into Pinnacle Financial Partners, Inc. (NASDAQ:PNFP). Pinnacle is a high performing regional bank headquartered in Nashville, Tennessee, with a relationship-centric business model focused on commercial and affluent clients across the Southeast. An executive in a suit examining a real estate loan contract, reflecting the commitment to financial services. As per our database, 31 hedge fund portfolios held Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) at the end of the first quarter, which was 19 in the previous quarter. While we acknowledge the potential of Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of PNFP 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. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
01-07-2025
- Business
- Yahoo
Should You Consider Including Climb Global Solutions (CLMB) in Your Portfolio?
Riverwater Partners, an investment management company, released its 'Micro Opportunities Strategy' Q1 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated positive relative results in the first quarter, outperforming the benchmark. The results were driven by owning higher-quality companies compared to those in the microcap benchmark. Both stock selection and sector allocation contributed to the outperformance of the strategy in the quarter. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks such as Climb Global Solutions, Inc. (NASDAQ:CLMB). Headquartered in Eatontown, New Jersey, Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added information technology distribution and solutions company. The one-month return of Climb Global Solutions, Inc. (NASDAQ:CLMB) was -0.20%, and its shares gained 72.16% of their value over the last 52 weeks. On June 30, 2025, Climb Global Solutions, Inc. (NASDAQ:CLMB) stock closed at $106.91 per share, with a market capitalization of $492.038 million. Riverwater Partners Micro Opportunities Strategy stated the following regarding Climb Global Solutions, Inc. (NASDAQ:CLMB) in its Q1 2025 investor letter: "Climb Global Solutions, Inc. (NASDAQ:CLMB) is an information technology distributor with a strong presence across North America and Western Europe. A technician in a server room of a corporate office surrounded by servers and networking equipment. Climb Global Solutions, Inc. (NASDAQ:CLMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Climb Global Solutions, Inc. (NASDAQ:CLMB) at the end of the first quarter, which was 11 in the previous quarter. Climb Global Solutions, Inc.'s (NASDAQ:CLMB) first quarter net sales increased 49% to $138 million. While we acknowledge the potential of Climb Global Solutions, Inc. (NASDAQ:CLMB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of CLMB 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. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
01-07-2025
- Business
- Yahoo
Riverwater Partners Micro Opportunities Strategy's Top Contributor: Aris Water Solutions (ARIS)
Riverwater Partners, an investment management company, released its 'Micro Opportunities Strategy' Q1 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated positive relative results in the first quarter, outperforming the benchmark. The results were driven by owning higher-quality companies compared to those in the microcap benchmark. Both stock selection and sector allocation contributed to the outperformance of the strategy in the quarter. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks such as Aris Water Solutions, Inc. (NYSE:ARIS). Aris Water Solutions, Inc. (NYSE:ARIS) is an environmental infrastructure and solutions company. The one-month return of Aris Water Solutions, Inc. (NYSE:ARIS) was -1.95%, and its shares gained 53.47% of their value over the last 52 weeks. On June 30, 2025, Aris Water Solutions, Inc. (NYSE:ARIS) stock closed at $23.65 per share, with a market capitalization of $1.399 billion. Riverwater Partners Micro Opportunities Strategy stated the following regarding Aris Water Solutions, Inc. (NYSE:ARIS) in its Q1 2025 investor letter: "Top Contributor: Aris Water Solutions, Inc. (NYSE:ARIS): Aris Water Solutions (ARIS) was the top contributor to portfolio performance in Q1 2025, driven by solid execution on both operational and strategic fronts. The company provides infrastructure and water recycling solutions to energy producers in Texas. The company reported strong Q4 results: An industrial complex with a pillar of steam billowing from a water recycling plant. Aris Water Solutions, Inc. (NYSE:ARIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Aris Water Solutions, Inc. (NYSE:ARIS) at the end of the first quarter, which was 31 in the previous quarter. While we acknowledge the potential of Aris Water Solutions, Inc. (NYSE:ARIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Aris Water Solutions, Inc. (NYSE:ARIS) and shared Artisan Small Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ARIS 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. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Europe Investing Gains Wall Street Favor: Time to Jump Into ETFs?
Is it time to buy Europe? Wall Street strategists are increasingly igniting this conversation as investors weigh the economic toll of tariffs and a likely flare-up in inflation in the United States. Several major investment banks now believe European equities are set to outperform their U.S. counterparts by the widest margin in over 20 years, according to a Bloomberg survey of 20 strategists, as quoted on Yahoo Finance. Among the most bullish forecasts, JPMorgan and Citi forecast European stocks to outpace the United States by the widest margin in decades, as quoted on Yahoo Finance. UBS is also betting big on Europe. Historic fiscal reforms in Germany and resilient corporate earnings led to the bullishness in Europe investing. This divergence in outlook implies a potential 25-percentage-point outperformance by the Stoxx 600 over the S&P 500 in 2025, according to JPMorgan—the largest margin on record. Citi's forecast would mark the biggest gap since 2005, as quoted on Yahoo Finance. Some winning Europe ETFs of past week are iShares MSCI Spain ETF EWP, First Trust Eurozone AlphaDEX ETF FEUZ, iShares MSCI United Kingdom Small-Cap ETF EWUS, First Trust STOXX European Select Dividend Index ETF FDD, First Trust Europe AlphaDEX Fund FEP and iShares MSCI Europe Small-Cap ETF IEUS. EWP, FEUZ, EWUS, FDD, FEP and IEUS added 5.1%, 2.7%, 3.5%, 3%, 3.4%, and 2.2%, respectively (as of May 20, 2025). While the U.S. economy has recently outperformed, UBS believes this gap may soon narrow. The bank also notes that household savings are more abundant and less depleted in Europe than in the United States. Additionally, easier bank lending conditions in Europe could further support economic activity. UBS sees monetary policy as a key differentiator. Several European central banks have already begun easing interest rates, and so has the European Central Bank (ECB). With inflation cooling more steadily in Europe than in the United States, the chances of lower rates are higher in the Eurozone. Their models indicate that rate cuts in Europe are likely to have a stronger stimulative effect on the economy compared to the United States. More attractive valuations in Europe are another tailwind. Furthermore, the sector-adjusted P/E ratio in Europe is currently 18% below that of the United States, a gap only seen during recessions or Eurozone crises, or grave conditions not currently in play. Europe ETFs have been undervalued than U.S. stocks and ETFs. The P/E ratio of the largest Europe ETF Vanguard FTSE Europe ETF VGK stands at 12.26X while its U.S. counterpart — Vanguard S&P 500 ETF VOO — trades at a P/E of 24.72X. Other big Europe ETFs have also been trading at a discount to U.S. ETFs, driving a rally in the former funds this year against an improving economic backdrop. UBS notes that the relative earnings momentum is now tilting in Europe's favor, supported by a weaker euro and improving PMIs, which are expected to boost earnings revisions. Importantly, European companies — excluding financials — have healthier and more sustainable profit margins than their U.S. counterparts. In the United States, 67% of margin expansion has come from unsustainable sources such as ultra-low interest rates and tax cuts compared to just 3% in Europe, as quoted on CNBC. U.S. indexes like the S&P 500 and the Nasdaq were tech-dependent. The 'Magnificent 7' stocks and their exposure to the booming artificial intelligence (AI) field led to the rally in U.S. stocks last year. But the Mag 7 stocks have been facing a challenging time this year thanks to the emergence of China's DeepSeek and severe tariff threats (read: DeepSeek Buzz Boosts China Tech ETFs). With big tech stocks under pressure in early 2025, big U.S. indexes (that have so far enjoyed a concentrated rally) also succumbed to a failure in that period. On the contrary, winning Europe ETFs have major exposure to non-cyclical and other sectors associated with broader economic growth. This points toward more sustainability. In a nutshell, Europe ETFs have presented a broad-based rally instead of a concentrated one. While the broad-based rally is beneficial for Europe ETFs, we would like to note that Trump's tariffs may hinder Europe's growth to some extent. Investors need to remain vigilant about this. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard S&P 500 ETF (VOO): ETF Research Reports iShares MSCI United Kingdom Small-Cap ETF (EWUS): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports iShares MSCI Spain ETF (EWP): ETF Research Reports First Trust Europe AlphaDEX ETF (FEP): ETF Research Reports First Trust Eurozone AlphaDEX ETF (FEUZ): ETF Research Reports First Trust STOXX European Select Dividend ETF (FDD): ETF Research Reports iShares MSCI Europe Small-Cap ETF (IEUS): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
