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RGA Investment Advisors Q1 2026 Investment Commentary
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Year Zero: How AI Is Reshaping Our Investment Process
In our last commentary, we discussed Claude Code as “a more recent discovery” with “jaw dropping” potential. With the benefit of hindsight, we were too restrained in sharing our enthusiasm for Claude. In many respects, the past few months have felt like “Year Zero” for our research process, reorienting and rebuilding our tools with and around Claude Code. Chatting with LLMs is helpful, but we have learned this year that it only scratches the surface of AI’s real potential. By leaning into these new discoveries, we have not just enhanced our process, we have already generated key investment insights.
The key point is not that AI makes research faster, though it does. The more important point is that it changes the surface area of what we can monitor, test, and revisit. We can now track more companies, more inputs, and more changes without diluting the quality of our attention. For an investment process built around patience, selectivity, and evidence, that is a meaningful change.
In this commentary we will walk you through our workflow and then discuss a few specific investments. We have several goals in sharing some of our discoveries here:
• We want you to share in our enthusiasm for these new tools.
• We hope others will share ideas with us on how we can become more productive and generate even more value.
• We want to hold ourselves accountable and track our progress over time. We cannot yet quantify the ROI of these tools, but we expect to demonstrate their value more objectively over time.
At the outset, we should be clear that we do not view the deployment of AI itself as proprietary, though we have built proprietary tools that we will not share or discuss. AI is the ultimate force multiplier for human thought, it is not a replacement. Our process is fundamental to our ethos and does not change. RGA believes deeply in a low turnover, GARP orientation, with an appreciation for quality. In fact, in our version of Claude’s core memory (Claude. md), we have memorialized our own investment worldview with a memo describing our workflow from idea generation through portfolio management. Stated another way: Claude, as we use it ourselves, is deeply indoctrinated in our worldview and process. The only real change is in the tools we are using. We have replaced Factset (FDS) with a combination of AI models and a handful of APIs.
Our Workflow
The workflow starts with our dashboard that pulls together all of our various projects. At the very top, we see the results of our agentic project manager. If any of our various projects fails to run or launch as expected, we get a large red tile indicating which project we need to troubleshoot and why it failed to run. Given the time we have put into building these projects, those failures are increasingly infrequent, though it is incredibly important to know if what you are looking at is clean, factual information or something is broken.
Next, we have embedded links into each of our projects, sorted by category:
• Interactive Tools
• Expert & Management Calls
• Industry Dashboards
• Consumer Demand Trackers
• Filings and Macro
• Screening and Quantitative
• Live Signals
• Alternative Data
• Company Deep Dives
• Cross-Project Synthesis
Cross-Project Synthesis then leads into the next section: our daily “Cross-Project Memo.” Each day, this memo focuses on the critical changes across all of our dashboards. Change here is the key—we isolate and focus on what new material surfaces and where there are notable deltas across our various projects. In the delta lie the insights and the questions that we need to pursue. The cross-project memo is heavy on bullet points and visuals. It flows into/concludes “What to watch” and “suggested follow-up inquiry” and these are geared to our North Stars. In a similar fashion to all of our workflows—it concludes with a hole finding agent which uses a cross model validation framework we have developed internally to identify gaps and potential data weaknesses and/or misstatements.
Beyond these projects, we have built dozens of skills. These are not skills with AI, but rather ones that we have taught Claude and built into repeatable workflows. We have built dozens of skills ranging from more rudimentary pieces of our own workflows to call prep and synthesis. These skills are not exactly projects per se, but they help feed into them and have been tremendous accelerants in our own process.
Architecture and Structure
Our preferred setup uses the Antigravity IDE, Google (GOOGL)’s AI-native integrated development platform. We leverage a number of tools therein, with Claude Code in the command-line interface, Gemini side agents for efficient planning, large context windows, and efficient token use, and Codex for heavy quantitative validation work. We are also increasingly leveraging Claude Code via the desktop app for simple recurring tasks we share across our team.
Ryan’s background in CLI has been extremely helpful from the outset. As a consequence, early on, we developed an appreciation for building with thoughtful, scalable architectures and optimizing for token efficiency. These are critical points that ultimately have significant investment ramifications, but should also be at the heart of how projects are executed. Although this commentary focuses on what we have built with Claude, most of these projects do not run on Claude. Most of our projects run on Python scripts, rely on APIs that access structured information, and do not use AI during execution. We have simply leveraged Claude to build durable tools. To the extent they do utilize AI, the LLMs are accessed via API calls with specific parameter settings which we have refined internally. We further cache all the resulting LLM outputs in our own databases—allowing for cost efficient future access. These projects use SQL, JSON and MD files and we have chosen to visualize them in locally stored HTML files. ¹ Claude knows our preferred architectures and folder structures, so each project we start immediately builds in exactly the same, organized way.
As mentioned, several of these projects leverage AI along the way, and for that, we tap into the LLM model of our choice. This is an important point that you will hear more of over time. Although we are mainly using Anthropic (ANTHRO)’s Opus model via Claude Code to build, we are carefully selecting the appropriate model for the given task. For more rudimentary operations ((think aggregating numbers, more like data entry)), we are using the cheapest capable model and for more complex analyses that are semantic in nature, we tend to use Gemini. For numerate and internal reconstruction, we use Sonnet or Opus. These simple rules of thumb are subject to change, but model token efficiency aside, we expect our actual use of AI, as measured by the volume of tokens we burn, to level off or even decline once our phase of heavy building is behind us.
What Next?
The beauty of this structure is that our projects are evolving into the RGA Investment Management Operating System. Our thesis is housed in our own words, nested within how our ideas are being tracked. We are building structured datasets across key areas of our work, and while we are already harvesting insights, we expect the output to grow meaningfully over time. This is happening in a variety of ways. Each of our screeners is built with a real-time performance tracker; in other words, we will objectively know which screens generate value and which ones do not.
To share a few small examples—we are acquiring data points on key inputs for our companies, ranging from points of distribution to pricing to sentiment of reviews and tracking the progression over time. We have developed the logic that sits behind these workflows and translates this data into actionable insights with quantifiable signal value.
Soon, we will undertake a critical step forward, which was referenced above. We will be nesting our projects in a private domain, where our key assets are hosted and accessible online. We may instead forego online hosting and use a physical server that we can access directly. If you are reading this and have strong opinions on the functionality and security of either path, please do let us know.
The most important test for these tools is whether they lead to better questions, analysis and insights. Dashboards and agents are only useful if they sharpen the research agenda, reveal changes we might have missed, or help us say “no” faster. We are already seeing clear value from our new tools.
Turning Process Into Insights
In our Q3 commentary, we featured Google (Alphabet (GOOGL)) as an AI stock. We remain convicted in Google’s positioning, but our work has made us increasingly enthusiastic about AWS, Amazon’s cloud infrastructure segment, as a beneficiary of where AI workflows are heading. In that spirit, our obsession is far more about the profit pools and platforms built on and leveraging AI than with the picks and shovels required to build out AI infrastructure. The market is focused on companies seeing a surge in sales as hyperscalers rush to build AI infrastructure, but we think that focus is misplaced.
When capex inevitably levels off at the hyperscalers ((and it will)), growth will evaporate and margins will compress at suppliers. Tier 2 suppliers in particular will see demand fall off a cliff, particularly as Tier 1 suppliers add capacity into a plateau in demand. As this generational buildout matures and growth capex tapers, investors will likely realize that an entire class of companies should never have had their earnings capitalized at such high multiples. Meanwhile, the companies building recurring revenues that will continue for decades receive little attention amidst the hype. The recurring revenues layer on slowly compared to the surge in orders for hot items, but the recurring revenues compound and do so at high incremental margins. Free cash flow is crimped as companies rush to meet growing demand; however, as growth slows, free cash flow will soar. These dynamics are opposite what today’s market obsessions will experience. Herein lies our obsession with the profit pools that are emerging today.
In that very same commentary we featured Google, we gave a brief shout-out to Amazon’s opportunity to thrive in building the “application layer” of AI by deploying smart orchestration across the retail business’ robotics and logistics layers. The orchestration opportunity will take time to play out, but meanwhile, we see AWS at a critical inflection point today. As discussed above, using the right model for the right task matters, and Amazon is uniquely positioned to benefit from a shift toward token efficiency and workflows built by AI but executed largely through non-AI processes. This has become increasingly clear in our own work and there is growing evidence that the most advanced companies deploying AI are moving this way themselves: durable value should accrue to platforms that can orchestrate models, data, compute, storage, security, and workflow execution at scale. Said differently, Amazon’s ability to remain model agnostic, while serving the lowest cost tokens, positions them uniquely to capitalize on AI adoption at scale.
AWS has been the platform that helped launch countless software, ecommerce and digital service companies and has empowered numerous older companies to migrate their digital infrastructure to the cloud. They have done this with a combination of driving down the cost of compute, leveraging their proprietary chips and building an ecosystem of integrations around their offering.
Amazon was an early partner to Anthropic and owns a considerable equity stake in the company and more recently became an owner in OpenAI (OPENAI) with an equity stake alongside a commitment from OpenAI to spend $138 billion “to consume approximately 2 gigawatts of Trainium capacity through AWS infrastructure.” ² Trainium is AWS’ custom AI chip, designed to compete with Nvidia (NVDA)’s GPUs at an industry-leading total cost of ownership. As CEO Andy Jassy explained, “Our Trainium2 chip has about 30% better price performance than comparable GPUs and is largely sold out. Trainium3, which just started shipping at the start of 2026 and is 30% to 40% more price performance than Trainium2, is nearly fully subscribed. And much of Trainium4, which is still about 18 months from broad availability, has already been reserved.”
At the heart of AWS’ AI offering is Amazon Bedrock. This is a hosted environment that can run many of the leading AI models and agents, as well as many of the open-source cost efficient ones. In a world where leading users of AI require a variety of models, alongside the ability to run non-AI programs, AWS is positioned to win because their scale is greater and their cost per unit ((whether we’re talking tokens, CPU or memory)) is lower than anyone else’s. Notably, Amazon is already seeing clear signs that the flywheel between AI workflows and core cloud infrastructure is starting to take hold and accelerate, as explained by Jassy:
And then at the same time, we’re seeing very significant growth in our core business. And some of that are the migrations that have picked up from enterprises from on-premises to the cloud. But a lot of that is also as AI growth is exploding, it turns out that it leads to a lot of core growth as well, all the post-training, all the reinforcement learning, all the agentic actions and tool usage that these agents are using. And it fits with what you’re asking about on the chip side, which is because we have an unusual collection of chips, we have the leading CPU chip in Graviton, and we have the leading price performance silicon AI chip in Trainium. It means that we’re really unusually well positioned for the inflection that we’re seeing and the type of growth that we’re experiencing.
This growth is only just beginning and will accelerate as people move beyond experimenting with AI to running workflows built by AI, but the market has yet to recognize this reality. The opportunity in Amazon today feels similar to Google at this time last year. Due to AWS’ industry-leading scale during the rise of AI, growth rates are slower than other hyperscaler cloud peers; however, the absolute dollar volume of growth is incredible and accelerating today. This acceleration will continue throughout the year.
Saas Risk Tracker
We wanted to share one of our high value panels built by AI. This is a project we built in order to decipher the SaaS landscape and mine for opportunities where the market might be indiscriminately punishing software companies that are relatively inoculated from AI risk. The learnings have been actionable: since quarter-end, we have purchased two companies where this tracker helped us better understand the relevant risks. We will write about these purchases in our Q2 commentary. It has also kept us from acting on other companies that had been high up our watchlist.
Essentially what we have done is use a combination of quantitative and qualitative factors to assign a score that measures the risk a software company faces from AI. We defined the logic behind resilience and identified a key of traits that would be strong indicators of resilience quantitatively. In our benchmarking, a low score is good, while a high score is bad. We have turned our scores into three separate indexes: a high, medium and low risk bucket, each of which we can track on their own. We can also track an aggregate index. Notably, although market performance is not an input in the model, actual market results have aligned strongly with the model’s assessment of risk. While we are still tracking these data points prospectively—the backtested results and early tracking look promising.
We have overlaid fundamental data and given Claude the opportunity, knowing our worldview, to point us to mispriced market opportunities and to alert us to “value traps” w here the fundamentals might appear compelling, but the risk is too great.
Further down the tracker, we have ranked and sorted every company in our SaaS universe based on the quality of their free cash flow. Each company is ranked objectively on free cash flow quality—high contribution from net income, low contribution from stock-based comp, little deferred revenue, etc. We also take note of the companies with the greatest improvements in free cash flow quality over time. We also analyze the composition of bookings. Companies with very short-duration bookings face different risks than those with longer-term contracts locked in.
The tracker mines the transcripts of each company and pulls out the most important quotes as it pertains to AI’s impact on the business and ranks the quality of those insights. Companies who merely speak qualitatively receive less credit than those who quantify the benefits ((and risks)).
Last, we can click into any of the SaaS companies we track and see the key statements relating to AI displacement, renewal pricing, downsell/seat compression, build vs buy questions, profitability, renewal walls and AI monetization, amongst other factors. Everything is sourced and clickable back to the actual filings or transcripts. This has meaningfully accelerated our work in the SaaS space in a way that previously would not have been possible. We can cover more ground, get to “no” faster on certain companies, and develop a deeper appreciation for the persistence of certain businesses in ways that would have required a very different level of effort in the past.
The full quarterly snapshot of our tracker—covering every company in our SaaS universe along with their risk scores, free cash flow quality rankings, and AI-related management commentary—is available here.
We believe this is an environment where disciplined active management matters. The opportunity set is changing, dispersion is meaningful, and the ability to separate durable fundamentals from temporary enthusiasm remains critical. We are excited about the opportunities in front of us and grateful for the trust you continue to place in us.
If anything in this commentary prompts questions, please reach out. You can contact any of us at 516-665-1945 or through our direct lines listed below.
Jason Gilbert, CPA/PFS, CFF, CGMA | Managing Partner, President
Elliot Turner, CFA | Managing Partner, CIO
Ryan King | Partner
References
1. We will soon migrate everything to a secure, virtual host as our primary portal, but that’s not exactly necessary today.
2. OpenAI and Amazon announce strategic partnership
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Business
Eurozone inflation edges up to 2.9% in July – Eurostat

Eurozone inflation edges up to 2.9% in July – Eurostat
Business
Netflix sued over missing unreleased Nicolas Cage movie Fortitude
Check out what’s clicking on FoxBusiness.com.
Netflix has been sued for allegedly losing an unencrypted copy of a $45 million Nicolas Cage thriller that took seven years to produce, exposing the unreleased film to potential piracy and leaks.
The lawsuit, which seeks $105 million in damages, was filed by Op-Fortitude Ltd. and its owner, Swiss film producer and financier Simon Afram, who also accused Netflix of covering up the security breach.
The film, Fortitude, was based on the real-life World War II Operation Fortitude, a massive Allied deception campaign designed to convince Nazi Germany that the D-Day invasion would occur elsewhere. The operation had relied on a fake army, double agents and false radio traffic.
According to the lawsuit, the incident caused devastating financial losses by compromising the film’s first-to-market exclusivity and distribution value, forcing the plaintiffs to temporarily pause marketing and sales efforts ahead of awards season.

A hand holds a TV remote with a Netflix button in front of a television displaying the company’s logo. (Nikos Pekiaridis/NurPhoto via Getty Images / Getty Images)
The complaint says test screenings projected an 82% “top-two box” audience score, meaning 82% of viewers rated the film among the two highest categories, and conservatively estimated that the movie would generate at least $112.5 million in revenue — roughly 2.5 times its production budget.
In a statement to FOX Business, Netflix denied wrongdoing, arguing the movie was delivered without industry-standard safeguards such as password protection or encryption. The company also accused the plaintiffs of making “hostile attempts to extort money from Netflix over this situation.”
The dispute stems from a private screening Netflix reportedly requested between late 2025 and mid-2026.
While the plaintiffs alleged Netflix requested an unlocked or unencrypted copy to streamline the screening process, Netflix disputed that claim, saying security safeguards are standard practice and that the filmmakers voluntarily chose to provide an unencrypted version.

Nicolas Cage attends a premiere at the Museum of Modern Art on March 28, 2023, in New York City. (Photo by Dia Dipasupil / Getty Images)
According to the lawsuit, the plaintiffs informed Netflix both verbally and in writing that the drive was unencrypted and instructed the company to delete the files from its projection system after the screening.
After an unencrypted digital master drive was delivered to Netflix’s Hollywood studio on June 15, 2026, Netflix held the screening on June 16. The media giant then left the unencrypted file unattended on an office desk without basic physical or digital security controls, where it later disappeared, plaintiffs said.
The lawsuit alleged Netflix concealed the breach by repeatedly postponing or ignoring requests from the plaintiffs to arrange pickup of the drive between June 17 and June 25. The plaintiffs said it was not until June 25 that a Netflix executive emailed them stating that “someone stole a good amount of drives from our office desks this past week.”
Netflix has denied those allegations, saying it notified the appropriate parties as soon as its team became aware of the incident.
CHRISTOPHER NOLAN CONFIRMS BIZARRE ‘THE ODYSSEY’ CASTING CHOICES INCLUDING RAPPER TRAVIS SCOTT

A drone view shows the Netflix logo on one of its buildings in the Hollywood neighborhood of Los Angeles, California, Dec. 8, 2025. (Daniel Cole/Reuters / Reuters)
The plaintiffs further accused Netflix of trying to downplay the incident by claiming the stolen drive required an encryption key to access the film, despite knowing the drive was unencrypted. The lawsuit also claims Netflix offered to reimburse only the cost of the physical drive and referred to the asset as “missing” rather than “stolen.”
In a statement to FOX Business, Netflix said: “Netflix disputes any claim that it bears the risk of loss for a film delivered without the proper industry-standard safeguards,” the company said. “While we do not own the rights to Fortitude, we take content security seriously and have taken extra measures to support the filmmaker and his team. This includes conducting a thorough investigation and offering to monitor known piracy sites for any unauthorized distribution or sale.”
The plaintiffs also accused Netflix and its outside counsel of refusing to answer basic questions about the company’s internal investigation, including whether a police report had been filed, and declined to cooperate with the Los Angeles Police Department after the filmmakers filed their own report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 73.17 | -0.46 | -0.62% |
CLICK HERE TO GET FOX BUSINESS ON THE GO
In response, Netflix said it withheld details of its investigation because of what it described as the plaintiffs’ conduct, claiming they had initially demanded $165 million for the film rather than work with the company.
“We have declined to share anything about our ongoing investigation with the law firm representing Simon Afram, given their hostile attempts to extort money from Netflix over this situation — including immediately demanding $165 million for the film rather than work with us in good faith.”
The company added that its content security team is actively monitoring piracy websites for unauthorized copies of the film and said it has found no evidence that Fortitude has been leaked.
Business
Why the Vitamin B12 Inhaler and Caffeine Inhaler Are Gaining Attention
Nowadays people have a lot more on their plates. With busy work schedules, family responsibilities and private objectives, many individuals are looking for ways to keep their energy and focus in check throughout the day. This trend towards on-the-go wellness devices has sparked a rise in focus on innovative solutions that integrate effortlessly into daily routines.
The vitamin B12 inhaler and caffeine inhaler are two products that are intruding. They are lightweight and are gaining popularity among professionals, students, travellers and fitness enthusiasts who value their convenience and portability. Many people are seeking other, more portable options, instead of using large supplements or multiple cups of coffee.
Why Convenience Matters
The one giant reason they’re the focus of attention is because they’re mobile. Traditional energy-boosting options may need to be prepared or planned. Coffee needs to be packed separately, brewed, and refrigerated. Energy drinks need to be refrigerated. Portable wellness devices are an option that can fit in a pocket, handbag or backpack. Users like the availability of an option that’s always there when they need it – such as when commuting to work, attending meetings, studying at university or travelling. Of course, the more convenient the products are, the more desirable they are when consumers have a hectic lifestyle.
Growing Interest in Vitamin B12
Vitamin B12 has long been known to be an essential nutrient required to support normal energy metabolism and the function of the nervous system. Those with busy lives are looking for ways to get their daily dose of the essential vitamin. This enhanced awareness has brought the vitamin B12 inhaler to the attention of consumers seeking convenient wellness products. Its small size makes it ideal for those seeking compact solutions that can fit into their everyday lives without becoming too complicated. This enhanced visibility is part of a new health trend of making health technology more visible and accessible to fit into today’s lifestyle.
Continued Popularity of Caffeine
The popularity of caffeine is continuing to rise. Caffeine remains popular. Caffeine is still one of the world’s most popular stimulants used to keep individuals focused and alert during busy days. Even though coffee remains the primary product, consumers are slowly broadening their interest as they try out new formats.
The inhaler is also making headlines as another portable choice for those who appreciate flexibility. Business people, entrepreneurs, remote workers and students are a group that often look for products that fit seamlessly into their busy lives without disrupting productivity. With the evolution of wellness, people are increasingly interested in products that are convenient and portable.
Supporting Today’s Fast-Paced Lifestyle
Today’s customers are more inclined to buy products that make their lives easier. Minimalism, low weight, and portability are now key considerations for consumers in a wide variety of industries.
Portable wellness devices meet these expectations by providing:
- Tightly packed, travel-friendly designs
- Easy to store in bags/pockets
- Easy to use in your hectic schedule!
- Modern, user-friendly designs
- Healthy ways to be active.
The following are all attributes that contribute to the appeal of innovative wellness products for various age groups and professions.
Innovation Is Driving Consumer Interest
Various aspects of health and wellness have been changed by technology. Consumers are looking for products to be both functional and convenient, whether it’s a wearable fitness tracker or a smart hydration bottle. This trend toward portable innovation for wellness is seen in the increasing acceptance of vitamin B12 inhalers and caffeine inhaler. As manufacturers seek to deliver more contemporary, user-friendly experiences that meet the demands of a modern consumer, they are still investing in new product designs, high-quality materials and ease of use. As awareness increases, these products are becoming a part of the discussion about lifestyle optimisation, productivity, and personal wellness.
Looking Ahead
Consumer desires are still changing, and convenience plays a greater role in buying. Portable, contemporary, and user-friendly products are likely to continue to be in demand. As the video shows, the vitamin b12 inhaler and caffeine inhaler have become subjects of discussion, illustrating the changing landscape of wellness innovation in this fast-paced world. Although there are preferences out there, these portable options are becoming popular, reflecting a general trend to more practical products that cater for busy lives. In the ever-changing realm of wellness technology, mobile devices are likely to continue to play a crucial role in the future of personal wellbeing.
Business
ZOZO, Inc. 2027 Q1 – Results – Earnings Call Presentation (OTCMKTS:SRTTY) 2026-07-31
Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team
Business
Building Customer Trust Through a Zero Trust Security Model
Trust is now a commercial issue rather than simply an IT concern. Now, customers hand over the following data:
- Payment details
- Identity data
- Private communications.
Still, they expect quiet competence in return. Basically, a Zero Trust security model supports that expectation. It treats protection as a continuous business responsibility rather than a perimeter defence installed once and forgotten.
Why Need a Zero Trust Model?
To be honest, companies no longer operate inside one tidy network. In fact, the traditional boundary is blurry due to –
- Cloud platforms
- Contractors
- Remote employees
- Connected devices
- Third-party applications.
Consequently, familiar claims about being “secure” sound rather thin. So, businesses must explain –
- Who receives access
- Why they receive it
- When that privilege ends.
Security That Earns Confidence Through Small Decisions
At its best, every relevant access request is assessed against –
- Identity
- Device condition
- Location
- Data sensitivity
- Current risk.
Therefore, customers receive stronger protection from compromised accounts without facing blanket restrictions. In this case, the controls become selective and proportionate. That is how zero trust works.
This model does not assume that employees or customers are dishonest. Instead, it questions signals that have not been verified.
For instance, a valid password may not settle the issue. This might be especially true when credentials are stolen so routinely. Then, policies decide whether to permit, challenge, restrict, or block the activity.
Now, a company might say that access to customer records is limited by role. They might also say it is reviewed regularly and logged. However, the promise only holds when implementation reaches –
- Legacy software
- Service accounts
- Third-party integrations
- Administrative systems.
If you leave those areas untouched, the shiny security story starts looking ordinary.
Perimeter Security vs Continuous Verification
The practical difference becomes clearer when traditional assumptions are placed beside a modern control model. Neither approach represents one product. Rather, the comparison shows how security decisions move closer to –
- Identities
- Workloads
- Applications
- Actual behaviour.
| Security Question | Perimeter-Led Security | Continuous Verification |
| Who receives trust? | Internal users often receive broad confidence. | Every identity must establish legitimacy. |
| How is access granted? | Network location carries considerable weight. | Role, context, device health, and risk are combined. |
| What happens after login? | Sessions may continue with little scrutiny. | Conditions and behaviour remain under review. |
| How far can attackers move? | Flat networks may expose additional systems. | Segmentation limits lateral movement. |
| What can customers see? | Protection rests on vague security claims. | Controls support specific, explainable commitments. |
Zero Trust becomes customer-facing when these choices affect real experiences. For instance, an unusual payment change may trigger stronger authentication. Meanwhile, a familiar low-risk action continues normally.
On the other hand, a support agent may see only the information required for a case. This reduces exposure without making genuine service painfully slow.
Five Practices That Turn Security Architecture Into Trust
Technical controls do not create confidence automatically. Instead, customers notice the following:
Therefore, businesses need disciplined operating practices rather than a grand transformation announcement. Moreover, they do not need a stack of expensive tools that nobody has properly configured.
1. Collect Less and Classify Early
In general, security begins before authentication. If a company retains customer information it no longer needs, the attack surface expands for no useful reason.
Also, clear classification is necessary. It helps policies distinguish routine material from financial, identity, health, or commercially sensitive records.
2. Apply Least Privilege with Sensible Timing
Of course, permanent administrative access feels convenient. Still, it is difficult to justify. In fact, the following reduce standing risk:
- Just-in-time privileges
- Approval workflows
- Automatic expiry.
Moreover, internal access should reflect a specific task rather than job title, seniority, or old permissions nobody reviewed.
3. Segment Valuable Systems
A compromised laptop should not become a passport to billing platforms or production databases. Microsegmentation restricts movement between workloads and user groups.
Still, teams must test policies carefully. This is because brittle controls might interrupt services. Also, it must quietly encourage unsafe workarounds.
4. Explain Protective Friction
In most cases, additional verification irritates customers when it appears random. Basically, short, plain-language prompts should explain that unusual activity triggered the check.
At the same time, recovery routes must resist social engineering. Otherwise, the reassuring front door will sit beside a surprisingly weak side entrance.
5. Measure Control Quality Rather Than Tool Volume
Boards should examine the following issues:
- Abandoned accounts
- Policy exceptions
- Device compliance
- Privileged-access age
- Detection coverage
- Recovery performance.
In contrast, a long software inventory reveals little about whether the organisation contains an intrusion or protects affected customers.
The Difficult Part Is Governance
At the outset, the following factors provide the machinery:
- Identity platforms
- Endpoint signals
- Policy engines.
Still, governance determines whether that machinery behaves coherently. In fact, security, privacy, legal, product, and customer-service teams require shared rules for acceptable risk. Otherwise, one department tightens controls. Meanwhile, another creates broad exceptions to meet a deadline.
Zero Trust also requires an honest rollout sequence.
- Businesses should begin with critical data flows and privileged identities.
- Extend controls according to risk.
- Technical teams must map application dependencies before enforcing restrictions.
Basically, a rushed cutover might lead to the following issues:
- Lock out employees
- Disrupt customer journeys
- Undermine the confidence the programme was supposed to strengthen.
Moreover, privacy deserves equal attention. For instance, continuous verification may tempt organisations to collect excessive behavioural information.
Actually, signals should remain relevant, protected, and retained for defined periods. Consequently, security monitoring stays defensible instead of sliding into surveillance dressed up as sensible risk management.
Assurance Should Be Visible Instead of Noisy
To be honest, customers rarely want a technical lecture. However, they do want evidence that security decisions are deliberate. In fact, the following aspects demonstrate control:
- Clear account alerts
- Accessible login histories
- Rapid session revocation
- Specific incident notices
- Dependable recovery processes.
Conversely, claims such as “completely secure” weaken trust. This happens because experienced buyers know that no system will promise it.
The strongest message is modest and testable:
- Access is limited
- Suspicious behaviour receives attention
- Sensitive actions demand stronger proof
- Incident responses are rehearsed.
Behind that message, audit trails must help teams reconstruct decisions. In front of it, customers need useful choices without being burdened by internal security jargon.
Continuous Verification Makes Customer Trust More Credible
In the end, customer trust grows when a business reduces exposure and explains necessary checks. It must also respond cleanly when something goes wrong.
Zero Trust supports that standard when treated as an operating discipline rather than a fashionable technology purchase. The result is not friction everywhere. Rather, it is about better judgement applied repeatedly. This is helpful where customer data and services genuinely need protection.
Business
Hang Lung Group Limited 2026 Q2 – Results – Earnings Call Presentation (OTCMKTS:HNLGY) 2026-07-31
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Business
Redington shares gain 4% after Q1 profit jumps 77% YoY, revenue growth remains robust
The stock had surged nearly 15% during Thursday’s session following the earnings announcement and touched a fresh 52-week high of Rs 338.50.
The company reported a Q1FY27 net profit of Rs 486 crore, compared to Rs 275 crore in the corresponding quarter of the previous year. Excluding exceptional items, profit after tax (PAT) grew more than twice as fast as revenue, highlighting strong operating leverage. The company’s PAT margin stood at 1.4% during the quarter.
Revenue from operations rose 34.6% YoY to Rs 34,922 crore, compared with Rs 25,952 crore in the year-ago period, marking the company’s highest-ever quarterly revenue.
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The strong performance was led by the India business, where revenue surged 63% YoY, while PAT climbed 60%. Growth was driven by the execution of large enterprise deals, higher PC realisations amid industry-wide memory supply constraints, continued premiumisation in smartphones, and sustained demand for cloud and cybersecurity solutions.
Meanwhile, revenue from the Middle East and Africa business grew 15% YoY, supported by cloud and cybersecurity offerings despite geopolitical uncertainties during the quarter.
Business Segment Performance
The company reported strong momentum across its technology portfolio during the quarter.
Software Solutions Group grew 52% YoY, supported by increased adoption of cloud, cybersecurity, software-led engagements, AI-enabled solutions and subscription-based models. Endpoint Solutions Group grew 35% YoY, driven by higher PC realisations amid memory supply constraints and steady demand.
Mobility Solutions Group grew 21% YoY, led by premium smartphone demand and expansion of retail-led distribution. Technology Solutions Group grew 50% YoY, supported by large enterprise and data centre deals.
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“We have started FY27 on a strong note, delivering our highest-ever quarterly revenue and profit. This performance reflects the strength of our diversified business model, disciplined execution and broad-based momentum across businesses and geographies. Profit growth significantly outpaced revenue growth, reinforcing our continued focus on profitable and sustainable growth,” said V. S. Hariharan, Managing Director & Group CEO, Redington.
“As technology adoption accelerates across cloud, software, cybersecurity, AI-enabled infrastructure and digital transformation, Redington is well positioned to capture these opportunities through its strong ecosystem of global technology brands, partners and customers. We will remain focused on operational resilience, capital efficiency and long-term value creation for all our stakeholders,” Hariharan further said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business
Data Patterns shares fall nearly 7% after Q1 profit declines 14% YoY to Rs 22 crore
However, revenue from operations grew 17% to Rs 116 crore in the June quarter, from Rs 99.3 crore in the same quarter of the previous year. The company’s operational EBITDA in Q1 FY27 was Rs 31 crore, as against Rs 32 crore in the June quarter of FY26.
As per a regulatory filing on the BSE, the company’s board has approved a proposed acquisition of 100% stake in a Chennai-based ST Advanced Composites Pvt Ltd. (STAC), for a total consideration of Rs 10 crore. The acquisition of the composite manufacturing company will result in an in-house capability for composite parts required in the Company’s radar and other programs, thereby expanding the addressable value proposition in Data Patterns’ product offerings, as per the company’s statement.
According to the company’s CMD, Mr. Srinivasagopalan Rangarajan, the quarter has met the company’s expectations. He said, “We continue to see a healthy pipeline of opportunities and are now receiving larger-value complete system contracts. Our order book currently stands at around Rs 2,654 crore (including the orders negotiated and pending receipt), providing healthy revenue visibility. Our foray into counter-drone business and export initiatives continues to gain traction.”
He added that the company remains confident in achieving its full-year guidance, backed by the Government’s continued focus on indigenous defence manufacturing.
Data Patterns (India) works closely with defence PSUs, which include Hindustan Aeronautics Ltd and Bharat Electronics Ltd, as well as government organisations involved in defence and space research such as DRDO and ISRO.
Business
Xponential Fitness: Waiting For The Dust To Settle (Rating Downgrade)
Xponential Fitness: Waiting For The Dust To Settle (Rating Downgrade)
Business
Only one in five UK SMEs use registered trade marks, IPO survey finds
Just 21% of UK SMEs say they use registered trade marks, according to the Intellectual Property Office’s latest survey of SME intellectual property awareness, while 30% report using no form of IP protection at all.
Set against the government’s estimate of around 5.7 million private-sector businesses, that suggests millions of UK firms may be operating without registered trade mark protection for their brands. At the same time, the register is becoming more competitive. The IPO received 173,180 trade mark applications in 2024, up 5.8% on the previous year and the second-highest total in its history, while registrations increased 9.1% to 156,596. For founders, the implication is straightforward: as more businesses secure exclusive rights to their brands, delaying registration increases the risk of conflicts, costly disputes and, in some cases, being forced to rebrand. For businesses considering registration, Trama, a full-service IP law firm, explains the UK registration process and common application pitfalls in its guide to UK trade mark registration.
Why aren’t more UK SMEs registering their brands?
The evidence suggests the problem is misunderstanding rather than indifference. While 79% of UK SMEs claim to be familiar with the term “intellectual property”, only 26% demonstrate a high level of understanding when tested on how common intellectual property rights apply in practice. Awareness is relatively high, but practical knowledge remains much lower. One of the most common misconceptions is that registering a company with Companies House also protects the business name as a trade mark. It does not. Company incorporation and trade mark registration are separate legal processes serving different purposes. Companies House helps prevent identical or very similar company names from being incorporated, but it does not grant exclusive rights to use a brand name in the marketplace. Those rights generally come through trade mark registration.
For founders, the distinction matters. A business can legally incorporate under one name yet still face trade mark disputes or even be required to rebrand if another business holds earlier trade mark rights. This is explained in more detail in this guide which outlines the differences between company names and trade marks, and when separate registration is needed.
Why timely brand registration matters for UK SMEs
Competition for registered trade marks is increasing. Nearly half of all UK trade mark applications now come from overseas applicants. In 2024, UK-based businesses filed 90,480 applications, accounting for 52.2% of all filings. As both domestic and international businesses register more brands, the pool of available names becomes increasingly crowded.
That makes timing critical. In practice, the UK trade mark system rewards businesses that register early. An application can be refused because of an earlier registered mark, even where the applicant has never come across the other business. As the register becomes more crowded, delaying an application increases the likelihood of encountering an existing right and the risk of costly rebranding.
Businesses that have not registered are not necessarily without protection. The common law action of passing off can protect established goodwill, and trade mark applications filed in bad faith may be challenged. However, relying on these rights is typically more complex and expensive, requiring evidence of reputation, trading history and customer recognition. A registered trade mark provides a clearer legal foundation, making it easier to enforce rights, deter infringement and resolve disputes before they escalate.
What trade mark registration actually involves, and what it costs
For many SME owners, the idea of registering a trade mark feels more daunting than it is. In the UK, the process runs through the Intellectual Property Office and follows a fairly predictable path, even if the legal judgement behind it takes some care to get right.
The starting point is a clearance search of the existing register, checking not just for identical marks but for similar ones that cover the same or related goods and services. This step is often skipped by business owners filing on their own, and it is the single most common cause of later disputes. A name can be entirely free to trade under and still infringe on an earlier registered mark in the same sector, particularly where the goods or services overlap even loosely.
Once a name clears the search, the application itself requires selecting the correct trade mark classes. The UK system uses 45 international classes covering different categories of goods and services, and a business must file in every class relevant to what it actually sells or plans to sell. Filing in too few classes leaves gaps in protection; filing in too many adds unnecessary cost. This is one of the areas where legal judgement matters most, since the classes chosen need to reflect not just the current business but a reasonable view of where it is heading.
On cost, the IPO’s own filing fees start at £170 for a single class online, with £50 for each additional class. That is a modest outlay set against the value most SMEs place on their brand, and considerably less than the cost of a forced rebrand after a dispute. Where a business uses a solicitor or trade mark attorney to handle the search, classification and filing, professional fees are added on top, but this is often worthwhile given how much of the process depends on judgement calls rather than mechanical steps.
Timing matters here too. Once filed, an application is examined by the IPO, published for a two-month opposition period during which third parties can object, and then, assuming no objection succeeds, registered. The full process typically takes around four months from filing to registration, though contested applications can take considerably longer. Businesses sometimes assume protection begins only once the certificate is issued, but the filing date itself establishes priority. This means that in a dispute with a business that files later, an earlier filing date generally wins, even if registration is still pending.
For SMEs weighing whether registration is worth the administrative effort, the practical answer is that the process is neither long nor especially expensive relative to the risk it addresses. The bigger cost, in time and money, tends to fall on businesses that wait until a dispute forces the issue, at which point the options are narrower and the legal fees considerably higher.
Register before your brand becomes valuable
The best time to think about trade mark protection is before a business and brand gains traction, not after. Search the trade mark register before committing to a name, identify the goods and services that genuinely reflect your business, and file an application before your brand becomes worth copying. Many common mistakes, such as choosing a descriptive name or selecting the wrong classes, involve legal judgement rather than simply searching a database. For most businesses, registering a trade mark is a relatively small investment compared with the cost of rebranding after a dispute.
A trade mark is often one of a company’s most valuable intellectual property assets, yet many UK SMEs still leave theirs unregistered. The value of intellectual property often grows alongside the business itself, making early protection increasingly important. With a new UK trade mark application filed roughly every three minutes, the opportunity to secure a distinctive name narrows every day. Registering early is no longer just a legal precaution; it is increasingly a commercial advantage.
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