Investment Strategy

**Stock Market Sees Volatile Sell-off; Tech Stocks Face Pressure**

Thursday saw a significant market pullback, with the Nasdaq and S&P 500 declining as software and tech stocks experienced a sharp sell-off. Alphabet and Amazon were among the notable decliners. While some view this as a “clearing event,” investors are cautioned against momentum and high-multiple tech stocks, with value sectors showing emerging strength. Despite strong earnings, Alphabet’s shares dipped due to higher-than-expected capital expenditure guidance. Eli Lilly faced pressure from a generic competitor, but its own promising weight-loss drug launch remains a positive.

This experiment demonstrates AI’s potential to rapidly create functional software, exemplified by building a Monday.com clone in under an hour. This raises questions for investors about which companies, particularly those providing “sit on top of work” services like Atlassian and Adobe, are most vulnerable to AI disruption. Companies with strong network effects, such as cybersecurity firms, appear more resilient. The rapid evolution of AI necessitates a re-evaluation of business models and investment strategies.

The DoubleLine Income Solutions Fund (DSL) declared a $0.11 per share distribution for January 2026. The fund aims for high current income through investments in debt securities, including high-yield and mortgage-backed assets, with potential global exposure. While attractive, this strategy carries risks like interest rate sensitivity and credit risk. Distributions may include a return of capital, with final tax details provided annually on Form 1099-DIV. Investors should consult advisors and review fund risks before investing.

Huber Capital Management has absorbed the Coho Relative Value Fund’s assets into its Select Large Cap Value Fund. This strategic consolidation aims to leverage Huber’s expertise and infrastructure to serve a broader investor base, reflecting a growing trend in the asset management industry. Coho’s management team will remain shareholders, signaling confidence in Huber’s investment philosophy. The merger is expected to enhance operational efficiencies and scale for future growth, offering investors a tax-free reorganization.

GE Vernova’s stock is experiencing significant volatility despite renewed Wall Street enthusiasm, driven by its role in powering AI data centers. Analysts are largely optimistic, with several upgrading their ratings and price targets, anticipating strong order and pricing dynamics. However, some caution against chasing AI trends, suggesting strategic buying during market dips. The company’s long-term outlook remains compelling, with its stock nearly doubling year-to-date, yet short-term pricing power and long lead times present challenges.

Google’s founders, Larry Page and Sergey Brin, openly acknowledged Warren Buffett as an inspiration in their IPO prospectus. Now, Berkshire Hathaway has revealed a $4.3 billion stake in Alphabet, Google’s parent company, marking a significant foray into technology beyond Apple. This investment, driven by Alphabet’s strength in AI and cloud computing, signals a potential shift in Berkshire’s strategy. Buffett previously regretted not investing in Google and Amazon sooner. Notably, Google’s founders mirrored Buffett’s long-term vision, evident in their dual-class stock structure.

Franklin Templeton is launching the Franklin Dividend Growth ETF (FRIZ), targeting long-term capital appreciation through investments in fundamentally sound, U.S.-based companies with dividend growth potential. Managed by the Franklin Equity Group, FRIZ will feature a concentrated portfolio emphasizing companies with resilient business models and sustainable advantages. The ETF expands Franklin Templeton’s active ETF offerings, providing clients with diversified dividend expertise via a tax-efficient structure. As of August 21, 2025, Franklin Templeton manages over $47 billion in ETF assets globally.

BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc. (XALCX) will liquidate and terminate operations around August 29, 2025, its sixth anniversary. The Board of Directors approved the decision, aligning with the Fund’s Charter. Final NAV calculation will occur on the termination date, with distributions expected the week of September 2, 2025. BNY Mellon Investment Adviser, part of BNY Investments (managing $2.1T in assets), oversees the fund’s strategy. BNY, founded in 1784 with $55.8T in assets under custody/administration, trades on the NYSE as BK.