Prior to this transaction, Meritage Homes constituted 6.7% of Dendur Capital’s assets under management. Post-trade, the position has been reduced to zero. This suggests a reassessment of the risk/reward profile associated with the homebuilding sector, or potentially, a strategic shift towards alternative investment opportunities. Current top holdings, as of the filing date, include:
Because even with a handful of coppers to start, one can begin building a portfolio that, if nurtured with patience and a healthy dose of skepticism, might just compound itself over the decades. It’s a slow process, mind you, like teaching a troll to appreciate poetry. But it’s far more reliable than hoping for a lucky strike in the Goblin Gold Exchange.
Last quarter’s earnings report hit like a poorly aimed fertilizer bomb. Nearly halved the share price. A $4.52 per-share loss. And they gave the president the boot. A clean sweep, they called it. More like a panicked scramble. The kind that leaves a bad taste in your mouth, and a lingering smell of trouble.
Apparently, Metavasi, a name that sounds suspiciously like a villain from a low-budget sci-fi film, dropped $11.8 million on 171,202 shares of TTM Technologies (TTMI +7.51%). $11.8 million. It’s a sum that feels both incredibly specific and utterly meaningless. Like knowing the exact number of paperclips in the supply closet. They’re now holding 4.81% of the fund’s $245.42 million in U.S. equities. Which means, if my calculations are correct (and they rarely are), that TTM Technologies is roughly equivalent to… well, a lot of paperclips.
The sheer magnitude of Realty Income presents a problem, a rather obvious one, really. To meaningfully shift the figures on the balance sheet requires acquisitions of truly substantial size. Smaller, more nimble net lease REITs possess a distinct advantage in this regard. The dividend, a metric held dear by its devotees, has crept upwards at a modest 4.2% annualized rate over the past thirty years. A respectable, if hardly dazzling, performance. Yet, in the recent fiscal year, the monthly payout edged forward from $0.264 to $0.27 per share. A paltry 2.3% increase. One begins to suspect the well is running rather shallow.
The Vanguard Dividend Appreciation ETF (VIG +0.20%) is up, a modest four percent this year. The Vanguard S&P 500 ETF? Flat. It’s not a landslide, but in a market that’s developed a sudden aversion to risk, it’s a signal. A quiet one, but a signal nonetheless. This ETF leans toward quality, toward value. And right now, that’s a tailwind in a market that’s decided expensive toys aren’t as much fun anymore.
FactSet Research, those dedicated chroniclers of financial expectation, suggest a target of 8,255 for the S&P 500. A 21% increase. It’s a bold prediction. (One wonders if they’ve factored in the inherent unpredictability of human behavior, the occasional rogue asteroid, or the possibility that everyone will collectively decide that money is, in fact, entirely pointless. These things happen.) However, there’s a wrinkle. A small, potentially market-disrupting wrinkle. And it involves something called “midterm elections.”
They’re still growing, double digits, which is…something. But buckle up, buttercups, because volatility is less a threat and more a lifestyle choice at this point. Let’s unpack this, shall we?
The figures, of course, are merely abstractions. One might as well attempt to quantify the scent of rain or the melancholy of a forgotten button. The weighted average purchase price, a paltry $143.16, and the closing price on the aforementioned eleventh of February, $141.18, are presented with a solemnity usually reserved for the pronouncements of oracles. As if a few decimal points could truly capture the capricious nature of the market.
ON Semiconductor, for those unfamiliar, makes the little bits of silicon that make…well, just about everything work. Specifically, they’re into power and sensing chips. This puts them smack-dab in the middle of two rather large trends: electrification and automation. They’ve been putting a lot of effort into silicon carbide (SiC) and gallium nitride (GaN) chips. Now, I’m no physicist, but apparently, these materials are a bit like the Usain Bolt of semiconductors. They can handle higher temperatures and voltages, making them ideal for electric vehicles, renewable energy, and all sorts of industrial applications. GaN, meanwhile, is speedy, efficient, and good for AI data centers. It’s a bit like upgrading from a horse-drawn carriage to a rocket ship.