What's the idea? The middle market remains a crucial part of the US economy, contributing one-third of private-sector GDP and employing some 48 million people. However, traditional banks have been increasingly reluctant to lend to middle-market companies. According to the NFIB, less than 25% of smaller businesses had their credit needs met in early 2024, the lowest level since 2022. Blue Owl's diverse portfolio, valued at $12.4 billion as of March 31, 2024, includes investments in 31 industries. Despite challenges such as rising borrowing costs, the company's high weighted average total yield has allowed for stable interest income growth, supporting its dividend payouts.

What's the idea? The global agricultural industry in 2024 has been characterized by both rising demand for commodities and significant challenges. Demand for grain, oilseeds, and meat has surged, contributing to rebuilding stocks-to-use ratios for corn and soybeans. However, the industry faces hurdles such as a 3% decrease in corn planted acreage in the US, severe flooding in Brazil's Rio Grande do Sul affecting soybean production, and the impact of corn stunt disease in Argentina, expected to reduce corn planting. Corteva's financial performance has mirrored these industry challenges. In Q2 2024, the company reported operating earnings of $1.83 per share, exceeding analysts' expectations of $1.72 per share, but net sales of $6.11 billion were below analysts' projections of $6.16 billion.

What's the idea? The active training of neural networks requires a qualitative increase in computing power, which leads to higher demand for Rambus' products. McKinsey predicts that the global economy will need 8.6 million to 13.6 million new memory chips by 2030 just to develop neural networks, which implies a growth rate of nearly 50%. Market Research estimates that the global market for memory interface chips will grow from $1.04 billion in 2023 to $3.58 billion by 2029, representing a compound annual growth rate (CAGR) of 22.77%. In late 2023, Rambus launched a new generation of memory interface chips that increased chip bandwidth by 50%. In addition, last year the company optimized chip power consumption with DDR5 chips (PMICs) and introduced a new solution for quantum cryptography. Rambus is implementing a share buyback program with an authorized amount equal to 6.32% of the company's market capitalisation.

Stable high oil prices have sparked renewed interest in offshore projects, particularly in deepwater hydrocarbon exploration and production, driving long-term demand for related services. Helix Energy offers a suite of services that are in demand with increasing capital and operating expenditures in the offshore industry. The company provides complementary and diversified services to both the oil and gas and renewable energy industries. Increased capital expenditures by customers for production enhancement and trenching provide a strong growth impetus for the company's two main segments, boosting both revenue and operating margins. Management notes the long-term nature of the trends observed, supported by a solid order book.

What's the idea? In March 2024, Cisco completed its largest acquisition to date, buying Splunk for $28 billion. The acquisition was funded by issuing additional debt and is expected to create significant synergies by combining Splunk's artificial intelligence capabilities with Cisco's data. Management plans to focus on growth areas such as software, services, AI and cybersecurity, while balancing financial obligations and reducing the hardware portion of its product mix. Cisco reported mixed financial results for Q4 FY2024. Revenue for the quarter declined 10% year-over-year (YoY) to $13.64 billion from $15.20 billion a year earlier, but exceeded analysts' expectations of $13.54 billion. Adjusted earnings per share (EPS) were $0.87, down from $1.14 a year earlier, but slightly above analysts' forecast of $0.85.