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Tuesday, October 20, 2026

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Vicor Update, Part Three

Vicor’s $66.6 million in AI power-delivery royalties generated about $50 million of operating profit, eclipsing its module business as revenue reached $197.1 million.

VICR $8.1B
CV's Substack 28 clicks

From X

@marginofdanger 2 clicks

marginofdanger on X

I pasted two screenshots from $PS's 424B4. If you look at fee paying AUM, it's $16 bn excl HHH which has a de minimis mgmt fee/carry. Add in $PSUS and you are at $21 bn of fee paying AUM. $PS discloses pro forma mgmt fees of $238 mm but that is net of $91 mm of non-cash amort related to the IPO. So I'm going to give them credit for $329 mm of mgmt fees. Assuming a 65% operating margin and a 20% tax rate, that gives me effective fee paying earnings of $171 mm. $PSH.LN has a 16% incentive fee and $PS is entitled to the performance fees on the first 5% (the team gets beyond that). On $15 bn, this is $15 bn * 5% * 16% = $120 mm or $96 mm after tax. Add up the mgmt fee and performance fee share, and I get $267 mm of expected earnings or $0.67/share. Implies $PS is trading at around ~50x EPS vs. $KKR at 17x, $ARES at 20x, $BX at 21x. Of course you can layer in some minor $HHH economics and it takes down the multiple a couple of turns. But you could also layer in a few years of sub 5% returns and that takes away the performance fee too. Certainly a 50x EPS valuation is pretty common for a fast growing higher ROIC biz. But it's by no means cheap. The question is, how will Ackman raise any money from here? $PSH.LN is at a discount to NAV, $PSUS is at a discount to NAV and $HHH is at a discount to NAV. One thing that will allow $PS to grow into its valuation is great results as that will 1) scale up the earnings (as it's based on % of AUM) and 2) facilitate new investors. Another way to contextualize the valuation is to simply look at fee paying AUM of $21 bn and compare that to the equity value of $13 bn. That is pretty unprecedented in the land of asset managers but reflects in part the permanent capital and the limited float (I think its just the 20mm shares given in the IPO). Could easily see a lot of price pressure once the 380mm non-IPO related investors are free to sell.

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Copper Fox Metals: Research Flash

Copper Fox’s C$9.1 million Schaft Creek program advances metallurgical, tailings, water and road studies toward a pre-feasibility study,…

TECK $29B
Atrium Research - Equity Research 6 clicks

AppLovin Deep Dive

AppLovin rebuilt its ad model with AXON 2.0, lifting LTM revenue to about $7 billion and margins to 77% as Unity competition threatens ad…

APP $88BU $18B
Speedwell Memos 69 clicks

LXS.DE: a 2028 sale it can force

Lanxess can force Advent to buy at least half its Envalior stake in April 2028, potentially raising about €745 million to reduce net debt.

LPTH $492M
Trade Ideas Flow 21 clicks
FINV · long

Finvolution Group

FinVolution, a China and ASEAN unsecured consumer lender, trades at 4x earnings and 0.5x book value.

FINV $704M
Value Investors Club 5 clicks

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