From Seekingalpha · White Brook Capital · · 2m
White Brook Capital Q3 2026 Commentary
White Brook Capital's Ethical All-Cap strategy outperformed despite cautious AI approach in Q3 2026.
In brief
White Brook Capital's Ethical All-Cap strategy outperformed despite cautious AI approach in Q3 2026. White Brook Capital's Ethical All-Cap strategy outperformed Q3 2026 despite cautious AI investments. Originally reported by Seekingalpha.
Federal Reserve Rate Hike
The Federal Reserve resumed increases in the Federal Funds rate, marking the quarter's most significant development and perhaps the year's.
Economic Resilience
The US economy remained resilient despite poor consumer confidence, doubts about AI demand, and irresponsible fiscal spending.
Ethical All-Cap Performance
The Ethical All-Cap strategy outperformed this year despite a cautious approach to AI investments.
Ethical Small Cap Strategy
White Brook remains bullish on the Ethical Small Cap strategy despite delayed execution challenges.
Macro Commentary
The Federal Reserve's policy shift under Kevin Warsh has changed market functioning, with outsized deficit spending on war posing significant risks.
Treasury Yield Impact
The 10-year Treasury yield rose by almost a full percentage point, increasing mortgage rates to 7.4%.
AI Infrastructure Investment
AI infrastructure investment continues to support multiple parts of the economy and higher-income consumer spending.
Labor Market Shifts
Lower-income consumers are visibly trading down as domestic immigration enforcement increases costs for electricians and construction workers.
Trade War Effects
America's trade war with Canada increased lumber costs, while the war on Iran raised energy prices for construction and farming.
AI Thesis
White Brook's AI thesis states that AI has not yet affected employment, education, cost curves, or technological limits.
Ethical All-Cap Holdings
White Brook owns Nvidia, Taiwan Semiconductor Manufacturing Company, SK Hynix, and Chinese semiconductor companies.
Media Sector Thesis
White Brook has invested in FuboTV and Netflix, focusing on media companies rewining core business through AI infrastructure spending.
Perma-Fix Performance
Perma-Fix's activity picked up with regular waste shipments starting in July, and it is eligible for a $4.4 billion tank waste program.
Rapid Micro Biosystems
Rapid Micro Biosystems has returned to its initial purchase price after meeting or beating targets without major setbacks.
Ascent Industries
Ascent Industries improved sales by 38% in Q2 with profitability turning positive and expected cost savings by year-end.
CareCloud Performance
CareCloud reported 16% revenue growth but net income fell to $1.1 million due to merger costs and AI spending.
In short
White Brook Capital's Ethical All-Cap strategy outperformed Q3 2026 despite cautious AI investments.
