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The Kobeissi Letter
Small-cap stocks continue to underperform:
The Russell 2000 relative to the S&P 500 has dropped to its lowest level since January 2001.
The ratio between small-cap and large-cap stocks has declined 36.0% over the last 4 years.
This comes as the S&P 500 has gained +41.8% while the Russell 2000 has fallen -10.0% during this period.
This year alone, small-cap stocks have fallen -9.7%, more than double the S&P 500's -4.5% decline.
Without more economic certainty, small caps will lag.
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Small-cap stocks continue to underperform:
The Russell 2000 relative to the S&P 500 has dropped to its lowest level since January 2001.
The ratio between small-cap and large-cap stocks has declined 36.0% over the last 4 years.
This comes as the S&P 500 has gained +41.8% while the Russell 2000 has fallen -10.0% during this period.
This year alone, small-cap stocks have fallen -9.7%, more than double the S&P 500's -4.5% decline.
Without more economic certainty, small caps will lag.
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The Kobeissi Letter
BREAKING: President Trump has reportedly told his inner circle that Elon Musk will be "stepping back in the coming weeks from his current role," per Politico.
Tesla stock, $TSLA, is up sharply on the news. https://t.co/J9OH8BSNUv
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BREAKING: President Trump has reportedly told his inner circle that Elon Musk will be "stepping back in the coming weeks from his current role," per Politico.
Tesla stock, $TSLA, is up sharply on the news. https://t.co/J9OH8BSNUv
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The Kobeissi Letter
BREAKING: Tesla stock, $TSLA, erases decline and rises +2% on the day on reports that Elon Musk will be stepping back from his current role in the Trump Administration in the coming weeks. https://t.co/B5bJjqsO0H
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BREAKING: Tesla stock, $TSLA, erases decline and rises +2% on the day on reports that Elon Musk will be stepping back from his current role in the Trump Administration in the coming weeks. https://t.co/B5bJjqsO0H
BREAKING: President Trump has reportedly told his inner circle that Elon Musk will be "stepping back in the coming weeks from his current role," per Politico.
Tesla stock, $TSLA, is up sharply on the news. https://t.co/J9OH8BSNUv tweet
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The Kobeissi Letter
Tesla, $TSLA, is now up +12% from its low of the day as markets price-in a potential Elon Musk departure from DOGE. https://t.co/LWYjhzKH7d
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Tesla, $TSLA, is now up +12% from its low of the day as markets price-in a potential Elon Musk departure from DOGE. https://t.co/LWYjhzKH7d
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Quiver Quantitative
BREAKING: Amazon, $AMZN, is reportedly in talks to buy TikTok.
$AMZN up 1% on the news. https://t.co/xSSAnmDP68
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BREAKING: Amazon, $AMZN, is reportedly in talks to buy TikTok.
$AMZN up 1% on the news. https://t.co/xSSAnmDP68
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Hidden Value Gems
An interesting case of an Asian family holding business, Jardine Matheson, pivoting from an owner-operator model to an investment company.
Founded as an opium trader in 1832, the company plans to focus on higher returns for shareholders.
Major assets (almost all listed):
- Hongkong Land - owns much of the territory’s business district
- Mandarin Oriental - a luxury hotel chain
- DFI Retail - runs Ikea stores in Hong Kong, Taiwan, Indonesia, among other businesses.
- Astra - an Indonesian conglomerate (the biggest source of profits)
Jardine generates c. $5bn of operating CF on $53bn equity.
Te discount to NAV at 30%, not as wide as in other cases (incl Exor’s 50%).
$J36 #J36
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An interesting case of an Asian family holding business, Jardine Matheson, pivoting from an owner-operator model to an investment company.
Founded as an opium trader in 1832, the company plans to focus on higher returns for shareholders.
Major assets (almost all listed):
- Hongkong Land - owns much of the territory’s business district
- Mandarin Oriental - a luxury hotel chain
- DFI Retail - runs Ikea stores in Hong Kong, Taiwan, Indonesia, among other businesses.
- Astra - an Indonesian conglomerate (the biggest source of profits)
Jardine generates c. $5bn of operating CF on $53bn equity.
Te discount to NAV at 30%, not as wide as in other cases (incl Exor’s 50%).
$J36 #J36
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The Kobeissi Letter
BREAKING: White House Press Secretary Leavitt calls reports on Elon Musk leaving DOGE “garbage.”
Leavitt says Musk will leave DOGE when his work is complete. https://t.co/oFifLaUEMr
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BREAKING: White House Press Secretary Leavitt calls reports on Elon Musk leaving DOGE “garbage.”
Leavitt says Musk will leave DOGE when his work is complete. https://t.co/oFifLaUEMr
BREAKING: President Trump has reportedly told his inner circle that Elon Musk will be "stepping back in the coming weeks from his current role," per Politico.
Tesla stock, $TSLA, is up sharply on the news. https://t.co/J9OH8BSNUv tweet