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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Dear partners,

Thank you for your continued trust and support; you are the best partners I could ask for.

I’ll get straight to the point; this was the second toughest quarter we’ve ever had in terms of performance vs. the index. We were down a little over 1% for the quarter while the index was up 15%. This will be a short letter as I don’t want to waste your time and I don’t have excuses. I was slow to react to just how much agentic AI has changed in the past six months and that factor combo of being overweight software and underweight semis hurt pretty badly but I think the real takeaway was the need to keep the growth and quality bars as high as possible alongside valuation. Frankly, I was stuck in the past, focused on trailing valuations instead of facing the stark reality of an evolving world. Looking at past multiples is easy, understanding the world as it currently is, not how you’d like it to be, is far more difficult. In light of this internalization, we have modified the core value of the fund starting with an “N” to noumenon. It’s a philosophical word that is the root of phenomenon. A phenomenon is something as it is perceived but the noumenon is the true, underlying reality of something. This word came from Immanuel Kant and it’s something to strive for, not something that can actually be known or understood. It’s sort of a Platonic ideal. But I think that’s what good investors strive for — a deep understanding of the world as it is, not as they want it to be.

Getting back to the portfolio, we can’t change the past but what are we doing to adjust to the future? As I study each loser, the main reason is sacrificing even slightly on the quality bar. What’s crazy is just how power-law-driven investing is. Of the thousands of companies in our database, I hold the minimum bar to basically the top 75 companies (top 2%). Almost every loser since inception was in the bottom half of that scoring system. The top half, however, has been incredibly resilient. Taking just the top 10 companies since inception in our system and holding only those, the backtested gross returns were ~43% annually. Now, of course, there are always problems with backtests but it was a jarring example of how all of my trading has destroyed value and lowering our standards is the root of the problem. My strengths are not trading and macro. My strength and the core value-add of this fund is the proprietary qualitative and quantitative system that we have to identify winners. Going forward, I am going to keep the bar higher than ever and be laser-focused on that. As I say in every single closing: “All we can do is focus on what we can control and work hard to continually raise our standards.” This quarter certainly forced us to raise our standards. That’s one thing about investing and life, the tough times can crush us or refine us. It’s our choice. I suspect we will look back on this quarter in several years as a turning point that forced us to raise our standards to the next level. That’s what we can control. May the results follow.

Closing

I’m honored to have you as a partner. Thank you for your trust and support. It enables me to think long-term and will be our own competitive advantage.

The stock market, like life, will have its ups and downs. All we can do is focus on what we can control and work hard to continually raise our standards. Our strategy is simple – hitch a ride to the world’s best entrepreneurs that are running the fastest-growing, highest-quality companies at the most attractive valuations we can find. Here’s to many more years of focusing on the inputs and letting the outputs take care of themselves.

Sincerely,

Ryan Reeves

Performance Appendix

* launched August 8, 2022

Disclosures

Infuse Asset Management LP (“Infuse”) is an investment management company to a fund that is in the business of buying and selling securities and other financial instruments. This information is provided for informational purposes only and does not constitute investment advice or an offer or solicitation to buy or sell an interest in a private fund or any other security. An offer or solicitation of an investment in a private fund will only be made to accredited investors pursuant to a private placement memorandum and associated documents.

Infuse may change its views about or its investment positions in any of the securities mentioned in this document at any time, for any reason or no reason. Infuse may buy, sell, or otherwise change the form or substance of any of its investments. Infuse disclaims any obligation to notify the market of any such changes.

The S&P 500 is a U.S. equity index. It is included for informational purposes only and may not be representative of the type of investments made by the fund. References made to this index are for comparative purposes only. Reference to an index does not imply that the funds will achieve returns, volatility, or other results similar to the index. The fund’s portfolios are less diversified than this index. Returns for the index are total returns which include dividends and do not reflect the deduction of any fees or expenses which would reduce returns.

An investment in the fund is speculative and involves a high degree of risk. The portfolio is under the sole trading authority of the general partner. An investor should not make an investment unless the investor is prepared to lose all or a substantial portion of its investment. The fees and expenses charged in connection with this investment may be higher than the fees and expenses of other investment alternatives and may offset profits.

The information in this material is only current as of the date indicated and may be superseded by subsequent market events or for other reasons. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Any statements of opinion constitute only current opinions of Infuse which are subject to change and which Infuse does not undertake to update. Due to, among other things, the volatile nature of the markets, an investment in the fund/partnership may only be suitable for certain investors. Parties should independently investigate any investment strategy or manager, and should consult with qualified investment, legal and tax professionals before making any investment.

The fund is not registered under the investment company act of 1940, as amended, in reliance on an exemption thereunder. Interests in the fund have not been registered under the securities act of 1933, as amended, or the securities laws of any state and are being offered and sold in reliance on exemptions from the registration requirements of said act and laws.

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

Millions of drivers were in line to receive compensation this year, and most of the remainder should have got compensation by the end of 2027.

But the FCA has confirmed that no compensation will be paid before 2027 as a result of legal challenges to the scheme.

Consumer Voice said the scheme left “too many people short-changed”. The FCA has also received challenges from three lenders: Volkswagen Financial Services, Mercedes Benz Financial Services, and Credit Agricole Auto Finance.

The UK’s Upper Tribunal has agreed to hear legal challenges to the scheme, either in December or February next year.

It means that lenders will no longer need to calculate or pay compensation to people owed money under its scheme, until the legal process concludes.

The FCA said it would need to decide what to do next if the courts decided to overturn the programme. Without a scheme in place, the FCA has estimated that up to 19 million complaints would need to be handled individually, taking three years and costing lenders £6bn more.

It said it would “defend the scheme robustly as lawful and the best way to resolve such a widespread, long running and complex issue”.

Ultimately, the industry is expected to cover the full costs of any compensation scheme, including any administrative costs.

Lenders – including some of the UK’s biggest banks and specialist motor finance firms – have already set aside billions of pounds for potential payouts.

The body that represents the lending industry, the Finance and Leasing Association, said it had “concerns” about the programme but that it was choosing not to raise a legal challenge.

Santander, Barclays and Lloyds also accepted the scheme, despite raising concerns that the level of redress is disproportionate to those who suffered harm.

Even if drivers are entitled to compensation from these lenders they will need to wait.

There were some concessions made to lenders in a scaled-down final compensation plan from the FCA.

The Supreme Court considered three test cases which influenced the FCA’s decision and, ultimately, limited how broad the compensation programme could have been.

It focused on whether the car dealers had a duty to act on behalf of their customers, rather than in their own interests. The test case which was upheld was that of Marcus Johnson, who bought his first car – a Suzuki Swift – in 2017.

In his case, the Supreme Court said the terms of his finance deal were unfair due of the size of the commission payment, and the fact he appeared to have been misled over the relationship between the finance firm and the dealer.

The U.S. economy added jobs at a steady pace in June despite headwinds caused by elevated inflation and uncertainty over the Iran war’s economic impact.

What are the key findings of the June 2026 jobs report?

The Bureau of Labor Statistics on Thursday reported that employers added 57,000 jobs in June. That figure was below the estimate of economists polled by LSEG, who estimated 110,000 jobs added.

The unemployment rate dipped to 4.2%, which was also below the estimate of 4.3%.

The U.S. economy added jobs at a slower pace than expected in June. (Al Drago/Bloomberg via Getty Images)

Revisions were made to the payroll numbers for the prior two months, with April revised down by 31,000 from a gain of 179,000 to 148,000; while May’s report was revised down from 43,000 from a gain of 172,000 to 129,000.

Taken together, employment in April and May was 74,000 jobs lower than previously reported.

BLS TOOK STEPS TO FIX DATA RELEASE FAILURES BUT WATCHDOG SAYS MORE SAFEGUARDS ARE NEEDED

What sectors added or lost the most jobs in June 2026?

Private payrolls added 49,000 jobs in June, well below the LSEG poll’s prediction of 110,000 jobs. May’s private sector job gains were also revised down from a gain of 120,000 to 97,000.

Government payrolls grew by 8,000 jobs last month, while the increase of 52,000 in May was revised down to 32,000 jobs.

The manufacturing sector added 3,000 jobs in June, in line with the estimate of economists polled by LSEG. May’s figures were revised down from a gain of 7,000 jobs to a loss of 2,000.

Healthcare continued to add jobs last month, with the sector adding 21,500 jobs in June. That’s a slower pace than the average monthly gain of 38,000 over the last 12 months. Hospitals added 9,200 jobs for the month, contributing to a significant portion of the gain.

Leisure and hospitality employment declined by 61,000 in June, which reflected weaker than usual seasonal hiring. The sector has shown little net change in employment over the course of 2026 to date.

FEDERAL RESERVE LEAVES INTEREST RATES UNCHANGED AS WARSH ERA BEGINS

Federal Reserve Chair Kevin Warsh and other Fed policymakers left interest rates unchanged at their meeting last month. (Al Drago/Bloomberg via Getty Images)

What does the June 2026 jobs report mean for the workforce?

The number of long-term unemployed, defined as those who have been jobless for 27 weeks or more, was little changed at 1.9 million in June but is up 286,000 over the year. The long-term unemployed accounted for 27.3% of all unemployed people last month.

The number of people employed part-time for economic reasons also held relatively steady at 4.7 million in June. These individuals would’ve preferred full-time employment but were working part-time because their hours were reduced, or they weren’t able to find full-time jobs.

The labor force participation rate decreased by 0.3 percentage points to 61.5% in June, while the employment-population ratio edged down by 0.2 percentage points to 59%. Both figures were changed little over the year after accounting for annual population control adjustments.

ACTING LABOR SECRETARY PRESSURES 53 STATES AND TERRITORIES TO TACKLE UNEMPLOYMENT INSURANCE FRAUD

The leisure and hospitality sector shed jobs in June. (Daniel Acker/Bloomberg / Getty Images)

What experts are saying about the June 2026 jobs report

LPL chief economist Jeffrey Roach noted that, “Firms are still adding to their payrolls, but hours worked are below pre-pandemic levels as firms cut back labor utilization.”

“A concerning trend is the increasing flow of individuals dropping out of the job market altogether. For now, the labor market is holding, giving the Fed opportunity to stay focused on price stability,” Roach added.

Seema Shah, chief global strategist at Principal Asset Management, said that the June jobs report “paints a softer picture of the labor market than investors have become accustomed to, but it should ultimately be welcomed by markets.”

“The slowdown in payroll growth challenges the narrative of renewed labor market strength that has been building in recent months but, importantly, reinforces the view that the Federal Reserve is under little pressure to tighten policy,” Shah said.

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What does it mean for interest rate cuts?

The Federal Reserve is expected to hold interest rates steady in the near term due to stubborn inflation remaining elevated above the central bank’s 2% target, though the market sees a strong possibility of rate hikes later this year.

The CME FedWatch tool shows a 41.8% probability that the Fed will hike the federal funds rate by 25-basis-points from its current target range of 3.5% to 3.75%, versus a 21.7% chance of rates remaining at their current level. 

What does the June 2026 jobs report mean for the market?

The benchmark S&P 500 index rose about 0.7% on Thursday during morning trading following the release of the June jobs report.

The Dow Jones Industrial Average was up about 0.6%, while the Nasdaq Composite was up a little more than 0.7%.

Greater Manchester’s economic boom has not increased household incomes across outer boroughs, with earnings remaining stagnant despite regional growth, according to new Oxford Economics research

Greater Manchester’s relative economic success has failed to translate into improved wages or earnings for residents in its outer boroughs, according to a new report.

Research by Oxford Economics has indicated that “exceptional economic growth” has not resulted in higher earnings or income growth across the wider region.

Economists noted that elevated levels of economic inactivity and stagnant productivity gains in areas beyond Manchester city centre have constrained household finances.

The report scrutinises the broader narrative unfolding ahead of Andy Burnham’s anticipated move into Number 10, with the former Greater Manchester mayor having claimed credit for the growth achievements recorded in recent years.

He has also leveraged strong growth figures to bolster his calls for greater devolution, while pledging “good growth in every postcode”, as reported by City AM.

Although average disposable income growth in the city has outstripped the national average by approximately 0.6 percentage points between 2008 and 2025, growth in Greater Manchester boroughs Salford and Bolton has trailed 0.7 percentage points behind the country’s benchmark rates.

Bury, Oldham and Wigan have similarly struggled to match the growth witnessed in areas such as Manchester, Trafford and Tameside.

Economists highlighted that these areas have been disproportionately impacted by a significant surge in economic inactivity among working-age residents, with long-term sickness rising by nearly 25 per cent across the entire city region.

The report also indicated that poor transport links and a “relatively small” labour market have prevented Manchester’s growth from filtering through to surrounding areas across the region.

The report noted that sluggish income growth beyond the city centre suggests urban areas “remain too weak, too small, and too poorly connected to spread. growth across the entire region”.

Economists at Oxford Economics also raised questions over the city’s productivity growth, which “has been weak by historical standards”.

While the city benefited from an average annual productivity growth of 2.1 per cent between 1991 and 2007, that figure has since fallen to an average of 1.2 per cent per year following the financial crisis — though this still outpaced levels recorded across the UK and in London.

A separate paper by the consultancy also cast doubt on the data underpinning Manchester’s growth figures, given that the Office for National Statistics has encountered difficulties in publishing reliable labour market statistics.

In contrast, the Centre for Cities, a think tank favoured by Burnham, argued that Manchester’s city centre has strengthened thanks to a sharper focus on buses through the privately operated Bee Network bus and tram services.

It described the new transport frameworks as a “devolution success story”. The report also noted that wages across the city exceeded the national average, though unemployment levels between 2024 and 2025 were equally higher than the UK’s overall rate.

This article was written by

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Analyst’s Disclosure: I/we have a beneficial short position in the shares of QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

In addition to put options, I also have a short position against the Nasdaq through PSQ.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The British Business Bank has published its latest annual Small Business Equity Tacker

Wales has experienced the biggest percentage fall in equity deals in the UK while their combined value have increased marginally, show new research from the British Business Bank.

According to its Small Business Equity Tracker 2026 the value of equity investments in Wales last increased 1% on 2024 to £152m.

One deal, the £107m raised by Cardiff University life sciences spinout Draig Therapeutics accounted, for 70% of the total. The research from the UK Government’s economic development bank also shows that Wales and parts of the north of England under-performed on their share of university spinouts.

While Wales accounted for 7% of incorporated spinouts, only 3% of those receiving investment. Wales experienced the biggest percentage fall of equity deals of any UK nation or region, down 45% to 44. Only Northern Ireland had fewer deals with 35.

For the UK as a whole deals were down 17% to 2,002 with their total value down 4% to £12.28bn. On value Wales made up just over 1% of the UK total and on number of deals 2.2%

Across the UK, equity markets remained challenging in 2025 with investors increasingly concentrating capital into fewer, larger transactions. London’s dominance continued to ease as investment fell, while Scotland, the South West and the North West all recorded strong growth in investment value.

Across the UK, AI companies accounted for a record 44% of smaller business equity investment in 2025 and 26% of all deals, with investment increasing by 48% year-on-year to £5.4bn across 527 deals.

In Wales, AI businesses raised £5.6m across eight deals in 2025, accounting for 18% of all equity deals. While investment activity remains at an earlier stage than in some parts of the UK, AI continues to represent an important area of innovation, with Welsh businesses increasingly attracting backing to develop new technologies.

Recent examples supported by the British Business Bank’s £130m Investment Fund for Wales – whose equity element is fund managed by Foresight – include Cardiff-based automation company Bots for That, which secured a £1.5m equity investment to support growth of its AI-powered software platform, and Cardiff University spinout Nisien.AI, which received backing to accelerate research and development, expand its workforce and bring new products to market.

Jessica Phillips-Harris, director, Wales, British Business Bank local growth team, said: “Equity investment in Wales was resilient in the face of a challenging year in 2025, demonstrating that investors continue to back ambitious Welsh businesses with strong growth potential.

“Artificial intelligence is becoming an increasingly important driver of investment activity across the UK, and Wales is benefitting through innovative businesses developing new technologies and attracting investor interest. At the same time, strong investment into sectors such as life sciences demonstrates the breadth of innovation taking place across Wales.”