CEPU

Milei's Election Impact: Javier Milei's victory in Argentina's midterm elections has led to a significant surge in the country's stocks and bonds, reflecting increased investor confidence and a potential reduction in political risk.

Legislative Power and Reforms: With his coalition securing 41% of the vote, Milei is positioned to implement extensive libertarian reforms, including government spending cuts and tax system overhauls, bolstered by a substantial increase in congressional representation.

U.S. Support and Economic Outlook: The U.S. Treasury Secretary praised Milei's mandate as a success of U.S. policy in Latin America, highlighting the potential for increased private sector investment and economic freedom in Argentina.

Stock Market Reactions: Following the election results, several Argentine stocks listed in the U.S. experienced dramatic gains, with some rising over 34%, indicating strong market enthusiasm for Milei's economic agenda.

U.S. Stock Market Performance: U.S. stocks rose on Monday, with the Nasdaq Composite increasing by approximately 1%.

Janus Henderson Group Takeover Proposal: Shares of Janus Henderson Group surged 16.2% to $48.36 after the company received a non-binding takeover proposal from Trian Fund Management at $46 per share.

Significant Gains in Other Stocks: Avidity Biosciences saw a 43% increase after Novartis announced its acquisition, while several Argentine stocks rose significantly following President Milei's party victory in midterm elections.

Notable Stock Movements: Other notable gainers included Dyne Therapeutics (42.4%), Banco BBVA Argentina (41.7%), and BridgeBio Pharma (15.5%) after positive news regarding their respective companies.

Portfolio Performance: The international deep value portfolio saw an average stock increase of 7.87% in September 2025, with year-to-date gains exceeding 30% and an average yield of 3.31%, reflecting a strategy focused on acquiring quality assets at significant discounts.

Regional Market Dynamics: The portfolio's Asian holdings, representing 40% of total assets, face complexities due to China's economic changes, while European investments, making up 35%, navigate geopolitical uncertainties and macroeconomic challenges, highlighting the diverse opportunities and risks in global markets.

Maritime and Energy Investments: Shipping investments benefit from favorable supply-demand dynamics, with companies like Scorpio Tankers and Genco Shipping showing resilience, while energy holdings like Peabody Energy capitalize on robust demand amid the ongoing energy transition.

Outlook and Risk Management: The portfolio's deep value orientation positions it well for potential market shifts towards value investing, with a focus on strong dividend yields and asset backing, while maintaining a diversified approach to mitigate risks across sectors and geographies.