Rates Rising, AI Commoditizing, Value Agonizing

Today is Saturday, October 3rd 2026. The rotation from value to momentum not only continued this week, but accelerated.

What Worked in Value:

Nothing! Nothing worked in value this week. But I am only half joking, as management teams are seeing the same thing I am. Value has become incredibly compelling relative to growth. We had two management teams this week announce significant, accelerated repurchases of their company's stock.

What didn't work?

In a week where nothing worked for value it is hard to pick one thing, but I will frame this from a long-term perspective. When the spread between growth and value becomes this wide, I think the worst thing value investors can do is chase technology here. When the long-term these imbalances correct, all the pain I have experienced in the past months could reverse in a matter of days.

Next up is On the Hunting Trail for Value

I deployed the rest of my cash this week in this bear market for value. Now, with more ideas than cash, I will slowly rotate out of the ideas we own that have the lowest upside, and redeploy into even more phenomenal opportunities.

Wrapping Up:

The rally in technology at the expense of value is reaching a fevered pitch. It could continue for longer, or it could end soon as interest rates are still marching higher and AI models converge. Meanwhile, keep an eye on management teams doing something about their unfairly low valuations like announcing aggressive stock repurchases. Finally, though it is the harder thing to do, staying fully invested while value is out of favor usually works out long-term. Thanks for listening and have a great weekend.

Website: https://frankfunds.com

Brian X Account: https://x.com/bfrankvalue

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