Among the largest contributors to Fund performance were Armstrong World Industries, Ingevity Corporation, and Graham Holdings Co. Graham Holdings outperformed the benchmark on strong second quarter results, led by solid growth in Kaplan Education and the continued expansion of its Healthcare segment. Among the largest detractors from Fund performance were Interparfums, Haemonetics Corporation, and White Mountains Insurance Group.
Judging by its FQ3 earnings report, I expect flat earnings growth ahead for Annaly Capital Management. Other risks include chronic book value per share (BVPS) erosion and significant equity dilution, both of which can pressure long-term valuation. To counterbalance these negatives, Annaly Capital Management stock now trades at a sizable discount, judging by two independent valuation methods.
Graham Corporation shares are up ~40% YTD as stronger orders, higher guidance, and improved profitability offset a softer Q2; management still targets higher FY26 gross margin and EBITDA. TTM revenue growth is ~16% with quarterly volatility; defense rose 32% in Q2, space 17%, and energy/process 11%, pushing book-to-bill to 1.3x and backlog to a record ~$500M. Gross margin expanded from ~7% in 2022 to ~25% in 2025, driven by mix, pricing, and execution; Q2 margin dipped 220 bps on tariffs, mix, and comps.
| Diversified Consumer Services Industry | Consumer Discretionary Sector | Timothy J. O'Shaughnessy CEO | XBER Exchange | US3846371041 ISIN |
| US Country | 15,382 Employees | 16 Oct 2025 Last Dividend | 1 Jul 2015 Last Split | 24 Jan 1990 IPO Date |
Graham Holdings Company is a diversified education and media entity that operates internationally and within the United States through its subsidiaries. Initially founded in 1877 as The Washington Post Company, it underwent a name change to Graham Holdings Company in November 2013. With its headquarters in Arlington, Virginia, the company has expanded its spectrum of services to include education and test preparation, media operations, healthcare services, industrial manufacturing, and digital technology solutions. Its targeted clientele spans students, professionals seeking certification, and general consumers looking for quality services in health and education, among other areas.
Offers comprehensive services including test preparation materials and services, professional certification and licensure training, operations support for online education programs like Purdue University Global, and preparation for English proficiency exams. Also provides academic programs and runs colleges and business schools.
Engages in the operation of television stations and online magazines such as Slate and ForeignPolicy.com. It also includes the management of French-language news sites slate.fr and slateafrique.com, thereby covering a wide range of news and information services.
Provides home health, hospice, and palliative care services. The company also extends its services to dermatology, professional aesthetics, and other skin care solutions.
Manufactures and distributes products like screw jacks, linear actuators, lighting solutions, electrical components, and pressure-treated lumber and plywood, catering to various industrial needs.
Offers digital advertising services and social media marketing solutions with tools designed to enhance engagement between newsrooms and their audiences. This includes software solutions and services tailored for efficiency in digital platforms.
Other business operations include running restaurants, entertainment venues, automobile dealerships, and pharmacies, demonstrating the company's diversified investment in customer-centric businesses.