Five interesting things that Hodges Capital research analysts discovered this week...
#1 STORKS LOSING JOBS: Data released by the CDC shows that fertility rates in the U.S. have dropped to a historic low of 1.6 children per woman as of 2024. The UN currently projects the global fertility rate to be 2.25, just above the replacement level of 2.1— the threshold needed for a population to sustain itself from one generation to the next. Many adults continue to wrestle with the cost-benefit analysis of childrearing, despite public figures like Elon Musk warning that population decline poses a major threat to society.
#2 L.A.B LETS GO: In a blockbuster deal, L.A.B Golf has agreed to sell a majority interest in the company to L Catterton—the world’s largest consumer-focused private equity firm—at a valuation of $200 million. The sale follows the brand’s explosive growth, as golfers from both social media and professional circuits have found success with its high-tech putter. In an interview with MyGolfSpy, L.A.B owner and CEO Sam Hahn acknowledged his initial reservations about the deal, but ultimately felt the partnership would improve the brand’s supply chain and relationships with retailers moving forward.
#3 M2 MOVING: M2 serves as a rough gauge of the dollar supply in the U.S. economy. A recent report from Deutsche Bank noted that current M2 measurements suggest a potential acceleration in the money supply. During the COVID pandemic, both monetary and fiscal policy aligned to flood the economy with dollars in an effort to stave off recession—causing a dramatic spike in M2. While these measures achieved their immediate goals, some experts warn that surges in M2 growth can be a leading indicator of high inflation periods.
#4 COSTS OF COMPANIONSHIP: Spending on pet care has increased roughly 62% since 2019, according to the American Pet Products Association (APPA). While pet food costs have risen 20% since the pandemic, food accounts for only 43% of the estimated $157 billion spent annually on pet care in the U.S. The remaining 57%—covering veterinary care, medications, toys, and other expenses—has surged by 42% over the same period. Unfortunately, these rising costs have led to a notable increase in pet surrenders at care centers nationwide.
#5 LONGHORN LEGACY: According to a newly issued report from The Athletic, the University of Texas football team is now the most valuable collegiate program in the country. The team generated over $200 million in revenue during the 2024–25 season, becoming the first and only college football program in history to reach that milestone. The team’s final valuation came in at $2.38 billion—nearly $500 million more than that of the second-place Georgia Bulldogs.
HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.
This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.
All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.