White Brook Capital's Q3 2026 investor letter is cautiously optimistic. Its Ethical All-Cap Strategy has outperformed, while the Small Cap Strategy lagged due to execution delays, higher interest rates and market pressure. The firm says the economy remains resilient on AI infrastructure investment and consumer spending, but rising rates, energy and labor costs, fiscal deficits, trade conflicts and geopolitical tensions raise questions, and it favors AI infrastructure providers such as Nvidia, TSMC, SK Hynix and Qnity over expensive frontier-model developers. The letter notes that Netflix collected a $2.8 billion termination fee after losing the Warner Bros. Discovery auction, avoiding the cost of a large acquisition. Netflix closed at $68.69 per share, a $286.02 billion market cap, with shares down 3.74% over one month and 38.47% over 52 weeks; the firm views the stock as cheap given slower US growth, strong free cash flow and potential buybacks.
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