# White Brook Capital Q3 2026 Commentary

> White Brook Capital's Ethical All-Cap strategy outperformed despite cautious AI approach in Q3 2026.
- Title: White Brook Capital Q3 2026 Commentary · Seekingalpha
- Summary: White Brook Capital's Ethical All-Cap strategy outperformed despite cautious AI approach in Q3 2026.
- Keywords: white brook capital, ethical all-cap strategy, q3 2026, ai investment, federal reserve, ethics, securities, investment strategy, market performance, capital allocation, money, business
- Source: Seekingalpha — https://seekingalpha.com/article/4955561-white-brook-capital-partners-q3-2026-commentary
- Author: White Brook Capital
- Published: 2026-10-20T16:32:00+00:00
- Read time: 2 min
- Topics: white brook capital, ethical all-cap strategy, q3 2026, ai investment, federal reserve, ethics, securities, investment strategy, market performance, capital allocation, money, business
## 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.
## Key takeaway

White Brook Capital's Ethical All-Cap strategy outperformed Q3 2026 despite cautious AI investments.