Investment Q&A

While a weak economy can negatively impact PRL, it can also be a beneficiary of a more divided and weak economy, as subprime borrowers seek credit from PRL instead of larger banks. But, we do feel that FTS has more stability and staying power, given its infrastructure and real assets. We feel similarly about GRID in terms of end-market durability, but it is much smaller, and it actually deals more with the service/software side of utility grid analytics, rather than owning or operating physical utility assets. This current bifurcation that we are seeing in the markets is mostly a reflection of investors looking at software and software-adjacent stocks that have the potential for disruption by AI, and seeking companies with physical assets that have low obsolescence potential.