U.S. equity markets moved lower again, losing value for a second month in a row. The Iran conflict put significant downside pressure across all asset classes except energy. The benchmark S&P 500 lost -4.22%. The Dow Jones Industrial Average fell by -5.38%. The tech-heavy Nasdaq Composite Index dropped -4.75%. Since the start of the year, the Nasdaq Composite has lost -7.10%, and the S&P 500 has fallen 4.63%. The Dow Jones Industrial Average is the relative winner so far, with only a -3.58% drop. Notably, the traditional safe-haven precious metal, gold, fell more than 11% for the month. We are pleased to report that, in general, our accounts did not experience nearly the same losses this month. Most accounts are higher to start 2026.
The month’s sharp losses were buoyed by a sharp equity rebound on the final trading day. Overall, markets were primed for a squeeze after a steep drawdown. Retail sentiment suffered. Looking ahead, what happens on the ground in the Middle East and how expectations evolve will matter more for risk assets. Iran’s reported demands for reparations and de facto control of the Strait of Hormuz, including talk of a per-tanker toll, strike us as a serious obstacle to a clean, market-friendly ceasefire. Ceasefire betting odds are still subdued despite better headlines. We think there is room for both a positive surprise and, after today’s enthusiasm, more room for disappointment if negotiations stall or deteriorate. We continue to hold our domestic energy producers as a ballast for your portfolios.
The latest Conference Board confidence data suggest that U.S. consumers still feel reasonably secure today, helped by a solid labor market and perceptions that jobs remain broadly available. Headline confidence ticked higher in March, with views of current business conditions and employment improving even as expectations for the next six months slipped. To us, that mix says households recognize that the present is still okay, but are starting to worry about where the economy and their own finances may be headed. Rising oil prices are already feeding into one-year inflation expectations, which have moved notably higher, potentially curbing discretionary spending as we move through the year. We are cautiously optimistic that resilient employment and income trends can offset some of this pressure, but we also recognize that higher energy costs tend to show up with a lag in everything from gasoline to groceries. The Iran conflict and related geopolitical tensions have clearly contributed to oil prices, yet their full impact has not yet filtered through to the average American household’s day-to-day budget. In our view, that makes this feel more like a calm before the storm than an “all clear”, particularly if oil prices stay elevated or move higher from here. We are treating the positive confidence surprise as a near-term cushion, not a signal that the consumer is out of the woods on energy-driven inflation risks.
Please see the following updates on existing positions held at the firm:
Eagle Point Income Company Series C Term Preferred (Ticker: EICC)— Our Series C Term Preferred has been called early on February 26, 2026, with redemption on April 6, 2026. We are disappointed to lose a high coupon rate (8%). However, this early redemption makes sense for the closed-end fund, as this capital is not cheap. Since investing about a year ago, we have achieved an annualized rate of return of close to 7.5-8% (depending on when your account initiated its investment). The position was very stable throughout our time holding it, even during a couple of very volatile periods. We still have the sister term preferred (EICA), though its maturation comes later this year.
CMBT Tech NV (Ticker: CMBT)— CMBT continues to execute strongly. Management highlights that “momentum in our energy transition and digitalization verticals remains robust, supported by a record pipeline of opportunities.” The company ended Q4 2025 with solid top-line growth and improving profitability metrics. This demonstrates operating leverage as newer contracts scale. Management noted that recurring revenue from long-term service agreements and software-like offerings is increasing as a share of total sales. This enhances visibility into 2026 cash flows. On the earnings call, the team emphasized that CMBT is “entering 2026 with the strongest backlog in our history and clear line-of-sight to double-digit growth.” This is underpinned by demand from blue-chip industrial and energy customers. Balance sheet strength remains a differentiator. Ample liquidity and conservative leverage give CMBT flexibility to invest in growth, while returning capital when appropriate.
Bristow Group (Ticker: VTOL)— The transport company reported solid 2025 results. Total revenues rose to about $1.5 billion from $1.4 billion in 2024. Net income increased to roughly $4.32 per diluted share, versus $3.21 per diluted share a year ago. Offshore Energy Services, still the core of the business, grew revenues to about $990 million. Adjusted Operating Income was up 17%, helped by better utilization in the Americas and Africa, and improved contract terms. Government Services revenues increased to about $379 million as new UK and Ireland search-and-rescue contracts ramped up. Margins are temporarily pressured by startup costs, which management expects to ease as transitions are completed in 2026. Management also initiated a quarterly dividend of $0.125 per share. We continue to like the multi-mission, contracted nature of VTOL’s business and its improving cash-flow profile. However, we modestly trimmed the position over the last 45 days to manage overall concentration risk. risk.
Public Service Enterprise Group (Ticker: PEG)— The utility delivered strong 2025 results, with non-GAAP operating EPS of $4.05 versus $3.68 in 2024 and updated its long-term EPS growth target to 6–8% annually through 2030. Management raised 2026 non-GAAP operating EPS guidance to $4.28–$4.40, about 7% growth at the midpoint, and increased its regulated five-year capex plan to $22.5–$25.5 billion. The upside to that outlook could come from merchant nuclear contracting, particularly in Pennsylvania, where the company sees “more fertile ground” for large nuclear purchase agreements, while New Jersey’s new administration remains preoccupied with staffing and budget issues that hinder nuclear data center (nuclear PPAs). New Jersey still offers optionality through potential legislation that could allow utilities to own regulated gas, solar, storage, or nuclear generation assets, creating additional earnings and rate-base levers beyond today’s plan. We continue to view PEG as a predominantly regulated, infrastructure-driven compounder with embedded upside from nuclear contracting and potential regulated-generation expansion.
Our key takeaway is that while we prioritize preserving capital, we also focus on achieving strong performance. Year to date, we have outperformed the market and remain committed to identifying good-value investment opportunities.
Stash J. Graham