[NAV Forecast] WCM Next & World's Best: WCM secures positive territory on US tech rebound, while European and defensive stocks remain sluggish, leading to mixed results (Nov 7 …

Good morning, this is TOMMY_JUNE.

Today’s US market recovered from the sharpest decline in 19 months seen the previous day, with the Nasdaq Composite (+1.09%) and S&P 500 (+0.32%) rebounding. Broad buying returned to the semiconductor and tech sectors, including Nvidia and AMD, and the Philadelphia Semiconductor Index (SOX) also bounced back. On the other hand, as investors try to gauge the next move for AI-related stocks, the Nasdaq fell for the fourth consecutive week. Furthermore, while information technology led the gains in the S&P 500 sectors, consumer staples and healthcare remained sluggish. With the Dow Jones (-0.46%), European markets (FTSE 100 -1.01%, DAX -1.92%), and even the Nikkei 225 (-5.96%) and Asian markets collapsing significantly, intense volatility continues across the market as a whole. Amidst this environment, the NAV forecasts for the two funds show mixed results, with WCM Next rebounding and World’s Best continuing to fall.

1. NAV Forecast Summary (Announced Nov 7)

These are estimated values based on confirmed closing prices in overseas markets. As the dollar-yen rate shifted toward a weaker yen at 158.49 yen (+0.50%), currency factors contributed positively to both funds. However, while WCM Next captured the rebound in US tech and infrastructure-related stocks, World’s Best saw a negative forecast as the sluggishness of European stocks and non-tech names took its toll.

2. Contribution Analysis (Stock Price Factors)

On a local stock price basis, the market saw a mix of declines in Asian semiconductor stocks following the previous day’s sharp drop and a rebound in US/European power infrastructure and tech stocks.

■ WCM Next Generation

Although Samsung Electronics (-6.35%) and TSMC (-4.69%) were heavily sold in Asian markets following the previous day’s sharp drop in the US, power and data center infrastructure-related stocks in US/European markets such as Siemens Energy (+3.74%) and Comfort Systems USA (+5.67%), as well as SharkNinja (+3.12%) which announced strong earnings, rebounded strongly, ensuring a positive subtotal contribution (+0.30%) for the top 10 holdings.

■ World’s Best

Declines in top holdings such as 3i Group (-1.87%), Canadian Pacific Kansas City (-1.63%), and Microsoft (-0.79%) weighed on the portfolio. Although Rolls-Royce (+1.74%) and Visa (+0.28%) attempted to support the downside in positive territory, they were unable to overcome the overall downward pressure (-0.79%).

3. Deep Dive: Factors Behind Notable Stock Movements

I will explain the latest background on stocks that have shown particular movement in the recent market.

• Comfort Systems USA (FIX) Change: +5.67%

  • [Re-evaluation due to record-high order backlog driven by data center demand] Of the sales for the period from January to September 2026, 59% came from technology customers (compared to 42% in the same period last year), and the order backlog at the end of September reached a record high of $17.8 billion, up 90% year-on-year, which is being re-evaluated. Although there were moments mid-week when the stock was pushed down by the sell-off in data center-related stocks, the company’s high order visibility and growth potential were well-received as buying returned to AI and tech-related stocks in the US market, leading to a significant rebound.

• Siemens Energy (ENR) Change: +3.74%

  • [Bucking the trend amidst the sharp drop in the German DAX, driving the portfolio] Amidst a sluggish environment where the German stock market (DAX index) fell significantly by -1.92%, the company, which is the top holding in WCM Next, performed a strong counter-trend rise to 118.10 euros (+3.74%). Buying gathered on the back of persistent expectations for power grid and energy infrastructure demand accompanying the expansion of AI data centers, recording the largest positive contribution (+0.27%) within the fund.

• SharkNinja (SN) Change: +3.12%

  • [Well-received 21% revenue growth in Q3 earnings and upward revision of full-year outlook] In the third quarter of 2026 earnings announced on November 4, the company achieved strong results with revenue of $1.98 billion, up 21% year-on-year, and net income of $338 million, and the upward revision of its full-year guidance continues to be a strong tailwind. Even while the consumer goods sector as a whole remains sluggish, the company’s unique product development capabilities and market share expansion are being recognized, leading to steady buying.

• Samsung Electronics (-6.35%) & TSMC (-4.69%)

  • [Risk-off in Asian markets following the previous day’s sharp drop in US tech] On November 6, Asian markets were hit by the shock of the Nasdaq recording its largest drop in 19 months in the US market the previous day (the 5th). In the Korean market, the KOSPI index plunged -6.02%, with Samsung Electronics falling sharply by -6.35% (188,700 won), and in the Taiwanese market, TSMC was also heavily sold, down -4.69% (2,135 TWD). Note that in the subsequent US market on the 6th, TSMC’s ADR rebounded by over +5%, meaning the decline was due to a time lag.

• 3i Group (-1.87%) & Canadian Pacific Kansas City (-1.63%)

  • [Profit-taking at highs and sluggishness in European markets] 3i Group had risen +2.73% at the start of the week (November 4), but was pushed back by the sluggish sentiment in the London market (FTSE 100 -1.01%) on the 6th, becoming the largest negative contributor (-0.09%) to the World’s Best. Also, Canadian Pacific Kansas City (CP) had risen +3.5% on November 4 to reach 52-week high levels, but it is now facing profit-taking pressure due to concerns about its recent P/E ratio (30.2x trailing) and reports of insider selling.

4. Summary of the day: Investment perspective

Today was a day where the time lag between markets and sector rotation were clearly visible: while the aftermath of the intense shock of the “largest drop in 19 months” in the US market the previous day hit Asian and Japanese markets (Nikkei 225 -5.96%) and European markets, AI, semiconductor, and infrastructure-related stocks were quickly bought back in the US market on the same day.

WCM Next completely covered the weight of the sharp drops in TSMC and Samsung Electronics during Asian hours with sharp rebounds in Siemens Energy, Comfort Systems USA, and Rolls-Royce (which has a trading update scheduled for November 12) during US/European hours, securing gains in both stock price and currency factors. On the other hand, the World’s Best struggled, failing to fully benefit from the US tech rebound due to the impact of falling European stocks and adjustments in defensive value stocks.

The Nasdaq Composite has fallen for four consecutive weeks on a weekly basis, and valuation adjustments for AI-related stocks and high volatility continue in the short term. However, some institutional investors are expressing the view that “AI remains the dominant theme of the bull market, and this week’s sell-off is a good opportunity for long-term buying,” and indeed, strong dip-buying entered semiconductor and data center infrastructure stocks in the US market on the 6th. The focus at the start of the week will be on how much Asian semiconductor stocks (such as TSMC and Samsung Electronics) will be bought back following the tech rebound in the US market on the 6th. Let’s watch the trends calmly while verifying the backing of corporate order backlogs and earnings, without being swayed by short-term index fluctuations.

TOMMY_JUNE

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While following global economic trends, I also write practical articles on personal real asset formation (FIRE x distribution funds). I have summarized perspectives for steadily growing cash flow without being deceived by pessimism on social media.

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