When we look back. . . the nature of the forces currently in train will have presumably become clearer. We may conceivably conclude from that vantage point that. . . the American economy was experiencing a once-in-a-century acceleration of innovation, which propelled forward productivity, output, corporate profits, and stock prices at a pace not seen in generations, if ever. ¹
The Broyhill Equity Composite declined 6.0% in the first quarter, net of all fees and expenses, lagging global equity markets as the MSCI All Country World Index declined 3.1%. ² Individual performance may vary depending on individual account allocations, legacy positions, and capital flows. Detailed quarterly reports, including account and benchmark performance, portfolio holdings, and transaction history, have been posted to our investor portal.
After a strong start to the year for the portfolio, global stocks fell sharply following the strikes on Iran. Despite our defensive positioning, with nearly half the portfolio invested in noncyclical sectors, our stocks did not provide the protection we expected or that we’ve historically provided. While we don’t invest on a one-month horizon, nor do we place undue emphasis on short-term results, we do remain relentless in our work to protect your capital from significant market losses. So, I want to explain what drove the gap versus our expectations, because the context matters – and because we believe the setup from here is unusually compelling.
Three structural portfolio tilts moved against us simultaneously.
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• We own no energy – the only sector with positive returns in March.
• Nearly half the portfolio is invested in businesses outside the U. S. , and European markets declined sharply given their higher sensitivity to energy prices (while this is broadly true of continental Europe, our companies have minimal exposure to the Middle East or the rising price of oil).
• Our large non-cyclical exposure – consumer staples and healthcare – underperformed in a down market, which is not supposed to happen and historically has not lasted.
What didn’t happen is as important as what did. Across the portfolio, businesses are performing well and meeting or exceeding our expectations. Consensus estimates continued rising even as our stock prices declined in March. That disconnect – improving fundamentals and falling prices – suggests this move was a positioning-driven sell-off, not a fundamental one. It’s also why we believe our stocks are poised to catch back up to fundamentals.
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Performance Review
It’s hard not to be uber bullish when stocks are enjoying a once-in-a-century acceleration in innovation, resulting in a surge in productivity and corporate profits. But as it turns out, we are actually witnessing a twice-in-a-century acceleration in innovation, as the opening quote of this letter was first delivered by Former Fed Chairman Alan Greenspan in January 2000. As they say, history doesn’t repeat, but. . .
Top Contributors
Valvoline (VVV) was our largest contributor in the quarter. While the market spent its days hallucinating about the terminal value of artificial intelligence, Valvoline went on quietly changing oil, opening new stores, while moving more cars through its bays than any other competitor in the industry. Since we’ve owned it, shares have exhibited significantly more volatility than the business itself, but what matters is that the underlying unit economics are intact, while unit growth, service mix, and price continue moving in the same direction.
Honeywell (HON) was our second-largest contributor in the quarter. Management accelerated the aerospace spin-off, moving the separation up to the end of June and leaving behind a pure-play automation business. We continue to believe the pieces, including the recently announced Quantinum IPO, are worth meaningfully more than the whole. Upcoming Investor Days are the next chance for the market to do the math.
Ball Corporation (BALL) rounded out our top three contributors during the quarter. When we initially acquired the position, our thesis centered around the company’s post-aerospace-divestiture status, which left it a pure-play packaging company well positioned to return significant capital to investors. As the thesis played out, we sold into the re-rating and redeployed proceeds into more attractive opportunities.
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Top Detractors
IQVIA (IQV) was our largest detractor despite fundamentals being far better than price action suggested. The stock has sold off because investors have convinced themselves that AI will compress economics faster than it drives demand. At the current price, we are more than willing to take the other side of that trade. Large pharma is structurally reliant on IQVIA’s clinical trial architecture and proprietary data assets, and we think it is highly unlikely that Claude can automate away the FDA approval process. While the burden of proof remains on the company, we believe we are being paid well to wait at the stock’s current valuation.
Louis Vuitton (LVMUY) was our second-largest detractor, posting its worst quarterly performance on record, driven by the Middle East conflict and fears of a broader slowdown in luxury demand. Beneath the headlines, Wines & Spirits delivered its biggest beat in years as the Hennessy destocking cycle ends, Watches & Jewelry beat as Tiffany continues to gain share, and Fashion & Leather continues its slow sequential improvement. The stock now trades at the bottom of its valuation range, which we find compelling for a business of this quality.
Avantor (AVTR) made our list of detractors for the last time in the first quarter. The destocking cycle has run far longer than we initially modeled, but the bigger issue was self-inflicted. Successive management teams failed to defend the share against Thermo Fisher (TMO). After swapping half of our position for Thermo last year, we took our
remaining lumps and redeployed the capital into Sotera Health (SHC), where litigation fears have created an opportunity to own a mission-critical sterilization duopoly at a meaningful discount to intrinsic value.
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Key Transactions
We run a concentrated portfolio and aim to invest over a three- to five-year horizon. With roughly 20 positions, that translates into a handful of new ideas in a normal year. But like our returns, our ideas come in lumps, as volatility creates opportunity.
The extreme dispersion we saw in the first quarter handed us an opportunity to populate the book with at least a year’s worth of new ideas. Running towards controversy after big dislocations is our bread and butter. I suspect that’s a gene inherited from my father, who still fills his car to the ceiling with random items he doesn’t need from close-outs (most recently, Livingston Mall in NJ) or even relics of the past left on the roadside. In markets, such a strategy rarely guarantees short-term success, but over the long term, it has consistently been our most reliable generator of alpha.
During the quarter, we booked a portion of our gains on Phillip Morris (PM) and fully liquidated several positions. In addition to Ball, noted previously, we liquidated profitable investments in Kenedy Wilson (KW) and Fresenius Medical Care (FMS), as the former agreed to a higher bid from CEO Bill McMorrow and Fairfax Financial (FRFHF), and proceeds from the latter were redeployed into more attractive opportunities. We also fully liquidated two positions – Evolution (EVVTY) and Avantor – after reducing exposure to each, to reinvest in higher conviction ideas.
We initiated several new positions during the quarter. We bought Microsoft (MSFT) as the stock’s valuation declined to levels in line with the broader market. We initiated a new position in Smurfit WestRock (SW) with proceeds from Ball, as we suspect continued capacity tightening and additional pricing will drive mid-term results well above guidance and current consensus. We bought Sotera Health, a sterilization-franchise medical device business whose customers cannot easily replace it, where an ongoing tort overhang has created a price we believe materially underestimates the underlying business. And we established two new positions in the depressed housing industry – Masco (MAS) and Floor and Décor (FND), as we believe the normalized earnings power of both companies has increased significantly through market share gains and expense efficiencies captured during this extended downturn. We also began accumulating shares of Leggett & Platt (LEG), anticipating a higher bid from Somnigroup International (SGI), and fully exited when that bid emerged.
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A Few Words on Healthcare
While investors have focused on the trillions of dollars in market capitalization that have evaporated from the software sector in recent months, the Medical Device and Life Sciences & Tools industries have not been far behind in terms of creative destruction. In the wake of this latest leg down, we significantly increased our investments in the sectors, bringing both IQVIA and Sotera Health into our top holdings.
Clinical research is one of the most regulated industries on the planet – and for good reasons. It’s literally a matter of life and death. And while Claude has dramatically increased our own productivity, we surmise that government agencies, including the FDA, will be somewhat slower to embrace these magical tools. When you consider that
AI adoption within at least one large, highly regulated US bank consists of mandates from management that employees use Copilot at least x times each week, the thought of the FDA entertaining a material shift in trial paradigms over the next several years seems exceedingly unlikely. To put the agency’s pace of change in perspective, regulators began accepting digital data submissions in PDF format less than a decade ago.
CROs, or Clinical Research Organizations like IQVIA, sit squarely in the crosshairs of investors’ concerns, given AI’s potential to completely reimagine how research is conducted. In fact, we’d even suggest that drug discovery may represent the single most significant benefit of AI as the quantity of new molecules tested and drugs coming to market accelerates at a pace beyond even the wildest imaginations of Watson and Crick. But despite our impressive leaps in understanding the human genome since its initial discovery, our understanding of human biology remains incomplete at best. And where we lack a deep understanding, we will still need experiments to test hypotheses and to observe how these drugs actually work amid the mystery of human biology, regardless of what AI models might promise.
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While it may take time for the market to separate the wheat from the chaff, we expect that the Life Sciences Tools and broader research ecosystem will ultimately benefit from accelerating AI-driven demand for the data that fuels these models. And as AI compresses drug pipelines and increases the likelihood of clinical success, the growing number of drugs reaching the market will require more research, development, and tools. A recent analysis found that AI-designed molecules clear Phase I at 80-90%, compared with a historical average of 40-50% for conventional discoveries. ³ None of these candidates have been commercialized yet, but dozens have entered human trials, and several are now in Phase II. As Big Pharma’s return on investment improves, the rational response is to spend more on R&D, not less. Some functions will inevitably move back in-house, but we do not see the longer-term outsourcing trend reversing, as pharma simply doesn’t have the infrastructure or the data outside its own narrow indications. Bottom line: we think the data and scaled infrastructure that IQVIA provides will become meaningfully more effective, and a great deal safer, than a workflow vibe-coded by a pharmacist. We also think this makes the company more valuable, not less.
Recent channel checks support this view, framing AI more often as an opportunity than a threat. RFP flow and awards are improving as funding loosens and risk appetite returns; decision-making timelines are shortening, and pricing is firming. The bear case is that the majority of AI efficiencies gained by CROs will be captured by sponsors. But this ignores the fact that CROs have always been under pressure from Big Pharma to pass along savings. AI-generated efficiencies will certainly create additional opportunities to do so. This isn’t new. These companies have thrived for decades by finding ways to execute trials more efficiently, leveraging cost reductions into operating leverage to offset pricing pressures. That playbook hasn’t changed. But the price has shifted materially, with shares of IQVIA, for example, trading at half the broader market’s multiple, down from the 40% premium reached before COVID.
Bottom Line
We are keenly aware that our current positioning has weighed heavily on our relative performance of late. And we recognize that this has likely tested the patience of even our longest-duration investors. Simply owning a collection of good businesses does little to change that when their shares fail to deliver meaningful gains, while broader indices march steadily higher, and everyone around you is boasting about their biggest winners. While others are doing better at the moment, we think many are taking risks far greater than they appreciate. That is why we have stayed in our lane, rather than underwriting risks we don’t believe are properly priced.
Our job is to protect your capital while taking calculated risks to grow it over time. Periods like this test conviction. They also plant the seeds of future outperformance. This view may continue to cost us in the near term if momentum remains dominant over fundamentals. But with oil sitting in triple digits, geopolitics still in flux, and recorded crowding in US benchmarks trading at record valuations, we are willing to accept the risk of short-term underperformance because the reward for being correctly positioned when the market does turn has rarely looked more asymmetric than it does today.
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While we cannot predict when that will arrive, what it will look like, or how quickly it will unfold, what we can tell you is that the portfolio is meaningfully cheaper today than it was at the start of the year. Importantly, our view of the underlying businesses we own has not changed: we believe they are worth considerably more than the market is giving them credit for. Rising tensions in the Middle East, regardless of how they unfold, would not change that assessment.
We have been here before. Our relative results have always been cyclical. But a decade of data tells a consistent story. We have seen the pattern clearly: periods where relative performance compresses (as we saw during the speculative rally immediately following COVID) have consistently been followed by sharp recoveries (many of which included short-term drawdowns as we experienced in March). The current dip looks a lot like previous ones, which have historically been followed by our best relative performance.
One More Thing
There is nothing to writing. All you do is sit down at a typewriter and bleed. – Ernest Hemingway
A few years after joining Broyhill in 2005, a friend suggested that I start a blog to share our insights, which had, until then, been distributed only internally. That site, The View from the Blue Ridge, was eventually folded into the firm’s website. Writing has always been a valuable tool for me, both personally and professionally. It has never been a particularly easy or enjoyable process, but the result usually justifies the effort. Through writing, I am able to flesh out my thinking, find holes in my logic, and distinguish highly confident ideas from those held more loosely. But as the business has grown, I’ve had less time to share our work publicly beyond these letters. Coming into this year, I decided it was time to change that.
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We are excited to announce the launch of Vitruvian Value, where I will share our thinking, our ideas, our frameworks, and the lessons from running a concentrated portfolio through decades of market cycles, along with the occasional commentary on markets and human behavior.
We are grateful for your continued trust and partnership. We come into the office each day striving to earn it, and we realize just how fortunate we are to have such a wonderful group of like-minded, long-term investors who place their confidence in us. You enrich our network, strengthen our competitive advantage, and just make our work all the more enjoyable. As always, please feel free to reach out anytime with questions. We enjoy hearing from you.
Sincerely,
Christopher R. Pavese, CFA
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References
Remarks by Chairman Alan Greenspan Before the Economic Club of New York, January 2000
For standardized performance data, including 1-year, 3-year, and since-inception net returns with benchmark comparisons, please refer to the Broyhill Equity Fact Sheet. Past performance is not indicative of future results.
How Successful Are AI-Discovered Drugs in Clinical Trials, Drug Discovery Today (2024).
About Broyhill
Broyhill Asset Management, LLC (“Broyhill” or the “Firm”) is a Charlotte-based investment firm managing over $270 million in assets. Originally established as a family office nearly half a century ago, the firm spun out in 2022 to become an independently owned investment manager under the leadership of Chris Pavese. While Broyhill has historically explored a variety of investments for its clients, the firm is now focused on managing its flagship, global, value-oriented, public equity strategy. With a verified track record approaching ten years, the firm serves a diverse client base – including institutions, advisors, and high-net-worth families – by delivering long-term capital appreciation with a rigorous focus on capital preservation through disciplined, bottom-up security selection.
Broyhill Asset Management, LLC (“BAM”) is an investment adviser in North Carolina. BAM is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. BAM transacts business only in states where it is properly registered or exempt from registration. A copy of BAM’s current written disclosure brochure filed with the SEC, which discusses, among other things, BAM’s business practices, services, and fees, is available through the SEC’s website at www. adviserinfo. sec. gov.
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Separately Managed Accounts
The performance of the Broyhill Equity strategy is representative of a composite of numerous separately managed accounts and is considered to be a “carve out” or “extracted performance. ” The calculation methodology for this composite for the period from 9/1/15 through 12/31/23 has been verified by a third-party performance verification firm and reflects the equity returns of actual Broyhill client portfolios. The calculation methodology for the periods after 12/31/23 is the same as the methodology that was verified. The Broyhill Equity strategy performance results are based on the weighted average performance of the portion of individual managed accounts invested in the Broyhill Equity strategy, but may not represent the performance of the entire client portfolio. Since many of BAM’s managed accounts are invested per a “balanced” investment model, we believe that this extracted performance composite, which includes only fully discretionary equity holdings of all BAM discretionary accounts, is the most accurate representation of BAM’s long-term equity performance. Additionally, since this performance represents a pure equity allocation, it does not include the impact of any cash allocation. Performance figures for the total portfolio composite are available upon request. This data may be useful for an investor evaluating Broyhill, although individual results may differ based on each account’s investment objectives, the date of initial funding, the opportunity set available at the time, specific investment vehicles available to the accounts, and individual fee schedules.
Performance of the Broyhill Equity strategy composite is calculated using time-weighted rates of return, net of all fees and expenses, and reflects the reinvestment of dividends and other earnings. Since the composite returns are calculated gross of fees, in order to report net returns, the highest annual management fee we charge (1.5% per annum) has been subtracted from gross reported returns to arrive at the net returns shown.
Broyhill Vitruvian Value, LP
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The performance of the Broyhill Vitruvian Value (“BVV”) strategy presented herein is hypothetical and does not reflect the performance of any actual investment portfolio. The results are provided for illustrative purposes only and do not represent actual trading or investment results. Hypothetical returns have inherent limitations and do not account for all factors that may affect actual performance, including market conditions, liquidity constraints, fees, and other expenses. Past or hypothetical performance is not indicative of future results, and no representation is being made that any investment will or is likely to achieve returns similar to those shown.
The performance of the BVV strategy is representative of a composite considered to be a “carve out” or “extracted performance. ” The calculations performance of this composite from 9/1/15 through 12/31/23 has been verified by a third-party performance verification firm and reflects the equity returns of actual client portfolios invested in the BVV strategy. The performance calculation from 1/1/24 through 6/30/25 uses the same methodology as the verified period and also reflects the equity returns of actual client portfolios invested in the BVV strategy. For the period from 7/1/25 onward, the returns shown use the actual monthly returns for Broyhill Vitruvian Value, LP (“BVV LP”). These results are based on the weighted-average performance of the portion of individual accounts invested in the BVV strategy and may not reflect each account’s
entire portfolio performance. Since some of BAM’s accounts are invested per a “balanced” investment model, we believe that this extracted performance composite, which includes only discretionary equity holdings of all BAM discretionary accounts deploying the BVV strategy, is the most accurate representation of the BVV strategy’s long-term equity performance. Additionally, since this performance represents a pure equity allocation, it does not include the impact of any cash allocation. Performance figures for the total portfolio composite are available upon request. This data may be useful for an investor evaluating an investment in BVV LP.
While some of the BVV strategy’s performance has been verified by a third-party performance verification firm, none of the performance presented herein has been audited. All figures presented herein are unaudited. Furthermore, BAM does not undertake to update any information contained herein as a result of audit adjustments or other corrections.
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Performance of the BVV strategy composite is calculated using time-weighted rates of return and reflects the reinvestment of dividends and other earnings. Since the composite returns are calculated gross of fees, in order to report net returns, management fees and performance fees with rates and terms matching the BVV LP Class A interests have been subtracted from gross reported returns. This calculation means these returns are considered to be “hypothetical. ” Hypothetical returns have inherent limitations and are provided for illustrative purposes. The fees, rates, and terms applied are summarized as follows: an annual management fee of 1% per year, a performance fee of 20% on earnings over an annual hurdle rate of 8%. The 8% hurdle rate resets annually and does not compound. The account is also subject to a high-water mark, so a performance fee is not earned if the account value is below that mark.
General Disclaimers
The investment return and principal value of an investment will fluctuate. Therefore, an investor’s account, when liquidated or redeemed, will almost always have a different value than that shown herein. Current performance may be lower or higher than the return data quoted herein.
Past performance is not indicative of future returns. This information should not be used as a general guide to investing or as a source of any specific investment recommendations and makes no implied or expressed recommendations concerning how an account should or would be handled, as appropriate investment strategies depend upon specific investment guidelines and objectives.
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Information presented herein is subject to change without notice and should not be considered a solicitation to buy or sell any security. This document contains general information that is not suitable for everyone. The information contained herein should not be construed as personalized investment advice.
The opinions expressed herein represent the current, good-faith views of BAM at the time of publication and are provided for limited purposes, are not definitive investment advice, and should not be relied upon as such. There is no guarantee that the views and opinions expressed in this document will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. No representations, expressed or implied, are made as to the accuracy or completeness of such statements, estimates, or projections, or concerning any other materials herein.
Under no circumstances does the information contained within represent a recommendation to buy, hold, or sell any security, and it should not be assumed that the securities transactions or holdings discussed were or will prove to be profitable. There are risks associated with purchasing and selling securities and options thereon, including the risk that you could lose money. Any securities mentioned in these materials may or may not be held by clients of BAM or by BVV LP currently or in the past.
Certain information contained herein constitutes “forward-looking statements, ” which can be identified by the use of forward-looking terminology such as “may, ” “will, ” “should, ” “expect, ” “anticipate, ” “project, ” “estimate, ” “intend, ” “continue, ” or “believe, ” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and
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uncertainties, actual events, results, or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Nothing contained herein may be relied upon as a guarantee, promise, assurance, or representation of the future.
Market value information (including, without limitation, prices, exchange rates, accrued income, and bond ratings furnished herein) has been obtained from sources that BAM believes to be reliable and is for the exclusive use of the client. Market prices are obtained from standard pricing services or, for less liquid securities, from brokers and market makers. BAM makes no representations, warranties, or guarantees, express or implied, that any quoted value necessarily reflects the proceeds that may be received on the sale of a security. Changes in rates of exchange may have an adverse effect on the value of investments.
Index Disclaimers
Indices are unmanaged and do not incur management fees, transaction costs, or other expenses typically associated with an actively managed investment. Index performance is shown for illustrative purposes only and does not reflect the performance of any investment strategy offered by BAM. Index returns assume the reinvestment of dividends and capital gains, unless otherwise noted.
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The S&P 500 Index is a long-only market-capitalization-weighted index comprised of 500 large-cap U. S. companies. The MSCI ACWI Index is a long-only index composed of over 2,500 large and mid-cap companies across 23 developed markets and 24 emerging markets and covers approximately 85% of the global investable equity opportunity set. The MSCI ACWI Value Index is a long-only index composed of over 1,500 large- and mid-cap companies and exhibits overall value-style characteristics across 23 developed markets and 24 emerging markets. The value investment style characteristics for the MSCI ACWI Value Index construction are defined using three variables: book value to price, 12-month forward-looking earnings to price, and dividend yield. BAM’s strategies may invest globally, in both equity and non-equity securities, employ hedging strategies, and hold significant cash positions. As a result, the strategy’s composition and risk profile may differ materially from those of the indices shown herein.
You cannot invest directly in an index. References to indices are provided solely as a comparative market benchmark. Past performance of the index is not a reliable indicator of future performance of any BAM strategy.
Any third-party index data presented herein is the property of its respective owner and is provided “as is” without warranties of any kind. Such data may not be redistributed or used to create derivative works without prior written permission. Neither the index provider nor its affiliates shall have any liability in connection with the use of such data.
For additional information about other indices or strategies mentioned here, you may contact us a t ir@broyhillasset. com.
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CONFIDENTIALITY
No part of this material may be copied, photocopied, or duplicated in any form, by any means, or redistributed without BAM’s prior written consent.
THESE MATERIALS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY INTERESTS IN ANY FUND MANAGED BY BAM OR ANY OF ITS AFFILIATES. SUCH AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY INTERESTS MAY ONLY BE MADE PURSUANT TO THE CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM AND THE DEFINITIVE SUBSCRIPTION DOCUMENTS BETWEEN A FUND AND AN INVESTOR.
A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high net worth investor and consumer. Sign up to receive future editions, straight to your inbox.
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Equity Group Investments, backed by the family of late billionaire Sam Zell, owns a John Deere dealership, a bluefin tuna fishery and a pedestrian bridge that connects San Diego to Tijuana International Airport.
While those holdings sound entirely unrelated, what unites the private investment firm’s wide-ranging portfolio is a focus on old-economy businesses that are less susceptible to disruption from artificial intelligence and other technologies, according to EGI’s president, Mark Sotir.
“We tend to put our capital to work for a longer duration than most [private equity] firms. If you’re thinking out 10 years, 12 years, you have to start with picking a company in an industry that you know will be around,” he said. “That’s why we shy away from some tech and some startups. It’s not because we don’t like doing them. It’s just very hard for me to tell you where software is going to be 10 years out.”
The anti-AI trade gained steam on Wall Street earlier this year, dubbed “HALO” for “heavy assets, low obsolescence.” Family offices already employ the same strategy with private markets as they invest for generations and value the cash flow that often comes with old-economy businesses, according to Sotir. Economic uncertainty and tax reform has also made backing these asset-heavy companies more attractive.
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Asset-heavy businesses tend to deter traditional PE investors who are looking to buy and sell within three to seven years, giving family offices opportunities to acquire at a discount, according to Sotir.
“Everybody gets so enamored with asset-light, but I like to say, ‘If you’re paying an asset-light premium, then I’m not sure where the advantage is,’” he said.
The “one big beautiful bill” law also provided a boon to owners of these businesses by renewing bonus depreciation, enabling companies to deduct the full cost of qualifying assets like machinery or vehicles the first year they are used.
“It’s a very material change that can make a big difference in terms of the tax benefit,” said Brian Hans, who leads the tax efficiency strategists for UBS’ advanced planning group. “Family office clients are increasingly approaching investing in general with more proactive tax planning, looking at the after-tax return, calculating what the return from the investment is going to be, and factoring that in when making the decision to invest.”
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If the business is an active investment, the depreciation can be used to deduct against income on other active investments like stocks, Hans added. This is a sizable benefit for families that have highly appreciated stock holdings, he said.
Auto and equipment dealerships are ripe for taking advantage of bonus depreciation and check off other important boxes for families like reliable cash flow, according to Joe Mowery, head of dealership investment banking at Stephens.
“It’s very simple. They like a tax-advantaged income stream,” Mowery said.
While inflation and other economic trends can weigh on consumers’ ability to buy vehicles and equipment, the parts and service business is resilient and has high margins, according to Mowery.
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“It’s not a nice-to-have. It’s a must-have. You know, you got to get to work, you got to take the kids to school, whatever the case may be,” he said.
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Old-economy businesses aren’t immune to disruption, but they can come with geographic moats, limiting competition, according to Sotir. For instance, EGI owns John Deere and Kenworth dealerships. Thanks to the franchise terms, Sotir said he does not have to worry about another dealership of the same brand opening nearby.
As for EGI’s bluefin tuna fishing and farming business in Baja California, there are substantial barriers to entry due to quotas on fishing, according to Sotir.
EGI isn’t under pressure to deploy capital, unlike traditional PE firms, as it’s family backed, Sotir said, noting the firm typically makes one to two deals a year. Sotir said the firm is receiving more inbound queries from business owners who are pressured by tariffs, inflation and other factors.
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“The amount of uncertainty that people are dealing with has oddly turned into a benefit for us,” he said.
There are attractive opportunities in agriculture, with farms under tremendous stress, Sotir said. The challenges are real, such as the rising costs of fertilizer and fuel, but EGI can afford to wait for a payoff, he said.
“People are worried about the space, and that’s the perfect time for us to step in to buy,” he said. “Even if the value doesn’t come in the first two, three years, that’s okay, as long as we know it’s coming, because we’ve got that duration.”
Mark Pownall is joined by Gary Adshead, Ella Loneragan, Tom Zaunmayr and Jack McGinn to discuss the Federal budget, a huge native title win, Exmouth tourism project, a big CBD sale, and more.
Textiles major Welspun Living on Friday announced a share buyback worth Rs 252 crore through the tender route at a buyback price of Rs 175 per share, implying a premium of more than 30% over the previous closing price.
In an exchange filing, the company announced that its board of directors has approved the proposal to buy back 144 lakh fully paid-up shares of the company with a face value of Re 1 each for an aggregate amount not exceeding Rs 252 crore. This represents 6.52% of the company’s total paid-up equity share capital and 5.65% of the free reserves.
Record date for Welspun Living share buyback
The record date to determine the eligibility for shareholders who can tender shares in the buyback has been fixed on May 22.Welspun Living further said that the board has formed a buyback committee to oversee the corporate action. It has appointed DAM Capital Advisors as the manager of the buyback.
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This comes after Welspun Living undertook a Rs 278 crore share buyback via the tender route back in August 2024. The buyback price for the offer was fixed at Rs 220 apiece. Share buyback refers to a corporate action where a company repurchases its own shares from existing shareholders, mostly at a premium to the market price.
Welspun Living Q4 Results
Along with the share buyback, Welspun Living on Friday announced its results for the January-March quarter of the financial year 2026. The company’s net profit declined more than 21% to Rs 104 crore in Q4 FY26, as against Rs 132 crore in the corresponding quarter of the previous financial year.The textile company’s revenue from operations, meanwhile, declined around 8% YoY to Rs 2,435 crore in Q4 FY26 from Rs 2,646 crore in the same quarter last year. EBITDA fell around 17% YoY to Rs 265 crore, while EBITDA margin contracted to 10.8% during the quarter under review.
Welspun Living share price
Despite the sharp decline in earnings, Welspun Living shares jumped 3% to trade at Rs 138 apiece on NSE after the buyback announcement, as seen at 2.20 pm. The shares of the company have gained over 4% in one week and 12% in one month. The stock is overall up 6% in 2026 so far.
In the longer term, the stock has jumped 50% in three years and 38% in five years. The company has a market capitalisation of Rs 13,200 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Elon Musk and Jensen Huang, leaders in technology, showcase contrasting styles in entrepreneurship. Musk’s visionary risks and Huang’s methodical execution drive AI advancements, shaping the future of global technology.
Paul Orders driven a pro-business and investment agenda for the capital city
10:08, 15 May 2026Updated 10:13, 15 May 2026
Paul Orders.
One of Wales’ most respected local authority chief executives, Paul Orders, is standing down.
Mr Orders was appointed chief executive of Cardiff Council in 2013, succeeding Jon House, having returned to the council after a two-year stint as chief executive of Dunedin Council in New Zealand.
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He had previously held a number of senior officer roles, having first joined the authority as a policy research officer in 1998, including head of policy and economic development and corporate director (place).
The recruitment process to appoint his successor is now under way. The role has a salary of £208,116. Mr Orders will remain in post until his successor takes up the role. As the biggest local authority in Wales, it will attract strong interest externally, but also from within the existing senior team.
Mr Orders, originally from Maesteg, has overseen a pro-business and investment agenda for the city. This has seen the council, unlike many other local authorities, taking a partnership approach with business, including helping to oil the wheels of investment by de-risking projects when necessary.
Very much aligned with the council’s cabinet member for investment and development, Russell Goodway, and the economic development team under Neil Hanratty, Mr Orders is helping to drive a new wave of mixed-use development at Atlantic Wharf in Cardiff Bay. Work is progressing on a first phase that will deliver a new indoor arena – which had long been seen as a missing link in the capital’s entertainment infrastructure.
While the city has seen significant investment, Mr Orders’ role has also involved tackling the socio-economic challenges of the city being home to some of the most deprived communities in Wales.
He played an important role in the creation of the Cardiff Capital Region, which covers the ten local authorities of south-east Wales. Cardiff Council was the city region’s accountable body before its transition to a statutory body in spring 2024.
His expertise could be in demand in a consultancy and non-executive capacity.
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Mr Orders, aged 57, said: “I have been chief executive of the council now for over 12 years and consider it a privilege to have worked with member and staff teams that are second to none.
“However, I feel now is the right time for me to signal my departure, to allow me more time and flexibility to concentrate on personal priorities, and to enable the council to oversee a management transition well in advance of the local elections next year.
“I would like to thank members across the chamber for the opportunity I have been given to serve the council, since my first role as a policy research officer in 1998, and to help shape and deliver the Cardiff agenda.”
Former leader of the council, Huw Thomas, who stood down after being elected a Senedd member earlier this month, praised Mr Orders for his unstinting professionalism and calm approach.
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Mr Thomas said: “The relationship between a leader and chief executive is key to the success of the delivery of any council agenda. My relationship with Paul was based on mutual respect and absolute trust. He is not just the epitome of professionalism and management, but also delivery – an assessment shared by numerous regulators such as the Wales Audit Office and in reports by Care Inspectorate Wales, as well as various council of the year awards.
“There is huge respect and affection for Paul in the Cardiff chamber, knowing that he is impartial and wants to help all councillors. Twelve years is a terrific stint for a chief executive, and many authorities across the UK look enviously at the stability that we have had. Paul leaves huge shoes to fill. This is not a retirement, but a stepping down, and I am sure he will continue to play an important role in public civic life in Wales.”
Cardiff Council deputy leader Sarah Merry said: “To come into cabinet can be a huge and daunting challenge, but I have found Paul a constant and calm source of advice and support whenever needed.”
Leader of the council’s Liberal Democrat group and a former leader of the council, Rodney Berman, said: “Paul has been a superb officer. I have had an opportunity to work with him over a good many years, and we could always see from the outset that he was somebody with a lot of potential and that he would rise fast.
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“I wasn’t at all surprised when it was announced he was coming back as chief executive, and we have been much better served in this city because of that. He is a very calm figure who just sorts out problems… and we need someone who follows on from that.
“I don’t think there is anybody who doesn’t think he is an excellent officer whatever side of the chamber they are on, or amongst council staff.”
NEW YORK — AT&T customers across multiple states reported widespread service disruptions Friday, with hundreds of subscribers unable to make calls, send texts or access mobile data as the telecom giant faced another day of reported outages on May 15, 2026.
The outage, first flagged early Friday morning, quickly gained attention on social media and outage tracking sites after the popular account @status_is_down posted: “AT&T is reportedly down for hundreds of subscribers right now. Are you one of them?” The message included a link to a Design Taxi community forum thread titled “Is AT&T down? [May 15, 2026]” and quickly spread across platforms.
Downdetector and similar services showed spikes in user reports, primarily affecting wireless voice, text and data services. Some customers also reported issues with AT&T Internet and U-verse TV, though wireless appeared hardest hit. Reports were concentrated in urban centers and suburban areas, with users in New York, California, Texas and the Midwest among the most vocal.
Many affected subscribers described their phones displaying “SOS” or “No Service” in the status bar, preventing normal connectivity even when Wi-Fi calling was enabled. Others noted intermittent signal drops, failed app loading and delayed notifications. The timing — during morning commutes and work hours — amplified frustration for business users and families relying on reliable mobile service.
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No Immediate Official Confirmation
AT&T’s official outage status page and support channels had not issued a specific alert for a nationwide incident as of mid-morning Friday. The company’s general support article on checking for outages remained unchanged, directing users to sign in for personalized information. Past large-scale AT&T outages, including the February 2024 event that affected millions, were quickly acknowledged with public updates and root-cause explanations.
Industry observers noted that smaller, regional disruptions are common and often resolve within hours without formal statements. However, the volume of social media complaints and the timing — shortly after previous minor incidents earlier in May — fueled speculation about underlying network strain.
User Reactions and Social Media Buzz
Frustration poured out online. Customers shared screenshots of error messages and “SOS” indicators, with many tagging AT&T and demanding answers. The hashtag #ATTDown trended briefly alongside #AT&T, echoing patterns from previous outages. Some users reported switching to rival carriers’ networks or using personal hotspots as temporary workarounds.
Parents expressed concern over inability to reach children at school, while remote workers complained of dropped video calls and delayed emails. One user posted, “This is the third time this month — AT&T needs to fix whatever is going on with their towers.” Others speculated about possible maintenance or external factors such as weather or fiber cuts, though no evidence supported those theories.
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The @status_is_down account, which specializes in alerting followers to service interruptions, has helped thousands feel less isolated during similar events. Its Friday post served as an early aggregator of user experiences before mainstream media coverage emerged.
Broader Context of Telecom Reliability
AT&T, one of the largest U.S. wireless providers, has faced scrutiny over network reliability in recent years. The 2024 nationwide outage, caused by an incorrect process during network expansion, lasted hours and affected emergency services in some areas. Federal regulators and consumer advocates have pushed for greater transparency and redundancy following such incidents.
Friday’s reported problems come amid ongoing industry-wide challenges. Carriers continue upgrading to 5G Advanced and preparing for 6G, but high demand, spectrum constraints and supply chain issues for equipment can create temporary vulnerabilities. Analysts note that even minor outages generate outsized attention because mobile service has become essential infrastructure for daily life.
Competitors Verizon and T-Mobile appeared unaffected based on real-time tracking, leading some customers to question switching providers. However, experts caution that all major carriers experience periodic localized issues, and comprehensive comparisons require longer-term data.
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Troubleshooting and What Customers Can Do
AT&T recommends standard steps for users experiencing problems:
Restart the device and toggle airplane mode.
Check for software updates.
Test Wi-Fi calling as a workaround.
Verify account status through the myAT&T app or website.
For persistent issues, customers can report problems via the AT&T app or support line. The company also offers outage alerts for internet services through its customer portal.
In cases of prolonged disruption, affected users may qualify for credits or compensation under AT&T’s service guarantees, though details depend on individual plans and outage duration.
Looking Ahead
As of Friday afternoon, many reports indicated gradual restoration of service, though some areas continued experiencing spotty connectivity. AT&T has not yet released a formal statement on the May 15 incident, consistent with its handling of smaller-scale events.
The episode underscores the growing reliance on wireless networks and the frustration when they falter. For millions of AT&T subscribers, even brief interruptions disrupt work, family communication and emergency preparedness.
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While today’s outage appears limited compared to past nationwide events, it serves as a reminder of the need for robust network resilience. Carriers continue investing billions in infrastructure, but consumer expectations for near-perfect uptime have never been higher.
Users are advised to monitor official AT&T channels and outage trackers for updates. In the meantime, many are turning to alternative communication methods until full service returns. The incident, though relatively contained, highlights ongoing challenges in maintaining seamless connectivity in an increasingly wireless world.
As the day progresses, more details may emerge about the cause and scope. For now, affected customers continue sharing experiences online, hoping for swift resolution and clearer communication from the carrier. The May 15 disruption joins a growing list of reminders that even the largest telecom networks can face unexpected hurdles.
AUSTIN, Texas — Elon Musk offered a simple yet powerful affirmation Friday, replying “True” to a viral X post declaring that “the most important thing in life is having true friends,” accompanied by a photo of the Tesla and SpaceX CEO alongside NVIDIA’s Jensen Huang. The understated response quickly exploded online, amassing millions of views and sparking widespread discussion about friendship, loyalty and the human side of high-stakes tech leadership.
The original post by popular X account @cb_doge featured an image of Musk and Huang together in a relaxed, friendly moment, likely captured during their recent high-profile trip to China aboard Air Force One with President Donald Trump. The duo, both titans of the artificial intelligence and semiconductor worlds, have forged a close professional and personal bond over years of collaboration on cutting-edge technology. Musk’s two-word reply resonated instantly, striking a chord with users who saw it as a rare glimpse of vulnerability and warmth from one of the world’s most polarizing billionaires.
Within hours, the post and Musk’s reply generated more than 15 million views, 150,000 likes and thousands of reposts and replies. Users flooded the thread with their own stories of friendship, memes celebrating the tech leaders’ camaraderie and heartfelt messages about the value of genuine relationships in an often cutthroat industry.
Recent Trip to China Highlights Bond
The photo appears to stem from the May 13-14 Trump-Xi summit in Beijing, where Musk, Huang and other U.S. tech executives joined the presidential delegation to discuss trade, AI and semiconductor cooperation. Images and videos from the trip showed Musk and Huang traveling together on Air Force One, engaging in candid conversations and even sharing lighthearted moments at official events.
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Musk has publicly praised Huang in the past, crediting NVIDIA’s early support for Tesla’s autonomous driving efforts and highlighting their shared vision for AI advancement. Huang, in turn, has described Musk as a visionary who believed in NVIDIA’s technology when few others did. Their partnership has deepened as both companies push the boundaries of AI infrastructure, with Tesla relying heavily on NVIDIA chips for its Dojo supercomputers and autonomous vehicle development.
The China trip itself drew significant attention, with Musk and Huang among the high-profile business leaders accompanying Trump. Photos of the group at the Great Hall of the People, including Musk performing his signature “photo-spin” for cameras, underscored the blend of diplomacy, business and personal rapport.
Friendship in the Tech World
Musk’s affirmation of true friendship comes at a time when the tech industry is often criticized for cutthroat competition, intense rivalries and fleeting alliances. Observers noted the post humanizes Musk, who frequently faces scrutiny over his public persona, work habits and controversial statements. Many replies celebrated the image of two visionary leaders supporting each other amid the pressures of building the future.
Replies ranged from heartfelt endorsements — “True friends are priceless” — to humorous takes on Huang’s signature leather jacket and Musk’s casual style. Some users drew parallels to other high-profile friendships in business, while others used the moment to reflect on personal relationships. A common theme emerged: in an era of digital connection, authentic bonds remain irreplaceable.
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Industry analysts suggested the post subtly reinforces the collaborative spirit between Tesla and NVIDIA, two companies at the forefront of AI, electric vehicles and computing power. Their relationship stands in contrast to more adversarial dynamics seen elsewhere in Silicon Valley, such as ongoing tensions over chip supplies and market dominance.
Musk’s Philosophy on Life and Success
Musk has occasionally shared personal insights on X, from family values to the importance of long-term thinking. His “True” reply aligns with previous statements emphasizing loyalty, resilience and surrounding oneself with people who share a mission. Friends and associates have described Musk as someone who values deep, enduring relationships despite the demands of running multiple companies.
For Huang, the sentiment resonates with his own public comments about early supporters like Musk who backed NVIDIA during critical periods. The two have appeared together at conferences and events, often discussing the future of AI with mutual respect and enthusiasm.
Viral Impact and Cultural Resonance
The post’s rapid spread highlights X’s role as a platform for unfiltered moments from influential figures. Musk’s massive following — more than 200 million users — amplifies even brief comments into global conversations. The exchange has been covered by major outlets, with commentators praising its simplicity and authenticity in an age of polished public relations.
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Social media users from diverse backgrounds shared how the post prompted personal reflection. Parents posted about teaching children the value of true friendship, while professionals discussed navigating workplace alliances. Some drew connections to broader themes of trust in leadership, both in business and politics.
Critics, however, noted the irony of a billionaire discussing friendship while navigating complex business and regulatory challenges. Others appreciated the reminder that even the most powerful figures prioritize human connection. The post has sparked countless memes, quote graphics and video edits celebrating friendship across industries.
Broader Implications for Tech Leadership
As AI reshapes industries and geopolitical tensions influence global supply chains, personal relationships among tech leaders can play a subtle but significant role. Musk and Huang’s rapport has facilitated collaboration on projects critical to U.S. innovation and competitiveness. Their joint presence in Beijing signaled unity in high-stakes diplomatic and economic discussions.
The moment also humanizes the often-intimidating world of big tech. In an era where executives are scrutinized for every statement and move, a simple affirmation of friendship offers a refreshing counterpoint. It underscores that behind the balance sheets and bold visions are individuals who value the same fundamental things as everyone else.
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As reactions continue pouring in, Musk’s brief reply stands as a testament to the enduring power of genuine connection. In a world increasingly defined by algorithms and competition, the image of two trailblazers sharing a moment of camaraderie reminds millions that true friends remain one of life’s greatest assets — a sentiment Musk himself endorsed with just one word.
The post remains live and continues gaining traction, serving as a timely reminder amid fast-paced technological change. Whether viewed as a casual comment or a deeper philosophical statement, Musk’s agreement has resonated far beyond the tech community, sparking conversations about what truly matters in life.
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