KKR

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: Frontier Power Selects 230 MW Battery Storage Projects Using $EOS Energy Enterprises(EOSE.US) Eos Batteries

👉 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:

➤ 𝐅𝐫𝐨𝐧𝐭𝐢𝐞𝐫 𝐏𝐨𝐰𝐞𝐫 𝐔𝐒𝐀 selected 𝟒 battery energy storage projects from Stella Energy.

➤ Projects total approximately 𝟐𝟑𝟎 𝐌𝐖 / 𝟗𝟐𝟎 𝐌𝐖𝐡 of battery storage capacity.

➤ Projects include 𝐁𝐥𝐚𝐧𝐪𝐮𝐢𝐥𝐥𝐚, 𝐀𝐫𝐚𝐧𝐬𝐚𝐬 𝐏𝐚𝐬𝐬, 𝐍𝐚𝐬𝐡, and 𝐖𝐚𝐥𝐥𝐢𝐬.

➤ Projects are expected to deploy 𝐄𝐨𝐬 𝐄𝐧𝐞𝐫𝐠𝐲'𝐬 𝐙𝟑 long-duration battery technology.

➤ Closing remains contingent on completion of 𝐄𝐨𝐬'𝐬 recently announced 𝐫𝐢𝐠𝐡𝐭𝐬 𝐨𝐟𝐟𝐞𝐫𝐢𝐧𝐠.

➤ The projects are the 𝐟𝐢𝐫𝐬𝐭 to advance under FPUSA's strategic partnership with Stella.

➤ FPUSA previously secured a 𝟐 𝐆𝐖𝐡 battery capacity reservation agreement with Eos.

➤ FPUSA will fund 𝟏𝟎𝟎% of construction equity, with Stella leading project execution.

➤ FPUSA's capital base is backed by 𝐂𝐞𝐫𝐛𝐞𝐫𝐮𝐬, with support from Hudson Bay and KKR Capital Markets.

👉 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬:

➤ Supports deployment of 𝐀𝐦𝐞𝐫𝐢𝐜𝐚𝐧-𝐦𝐚𝐝𝐞 long-duration energy storage.

➤ Expands Eos' commercial pipeline and validates demand for its 𝐙𝟑 battery platform.

➤ Advances large-scale battery storage development across the 𝐄𝐑𝐂𝐎𝐓 power market.

ValueAct Capital Portfolio Updates

$Toast(TOST.US) $Visa(V.US) $KKR(KKR.US) $Spotify(SPOT.US) $Wix.com(WIX.US) $Roblox(RBLX.US) $Meta Platforms(META.US) $Amazon(AMZN.US) $Live Nation(LYV.US) $MongoDB(MDB.US) $Rocket(RKT.US) $Disney(DIS.US)

What a month for the stock market.

In January, high-beta growth went to the moon.

Literally.

Any random name in nuclear, quantum, space, drones, etc. were up 40-50% within weeks.

In February, those same names were down just as much.

So the drawdown was isolated to growth stocks then right?

Well…large cap tech put up some of the best earnings in public market history. All of them got wrecked. Meta went to $740 then came right back down to $640. Google did 48% cloud growth and got sold off. Nvidia said they would grow 80% next quarter and the market laughed.

But, not only did high-beta and large cap tech get hit…in early February, Anthropic started to show how powerful some of their tools were becoming. The market looked at that and said cool…we’re going to sell off Software companies. SaaS names are now trading at their lowest valuation relative to the S&P since 2014.

PCE inflation was worse than expected. PPI was worse than expected. We added 130K jobs and beat the 70K expectation but then revised 1M jobs down for 2025.

Private credit concerns this month sent Apollo, KKR, and Blue Owl down the drain. Now fears around debt financing for datacenters continue to grow and is putting strain on financials.

So what worked this month?

Consumer defensives, industrials, memory, some parts of healthcare. Basically, people ran to the most crucial sectors in the semiconductor trade and value/stocks that can’t be replaced by AI. Coke is up 18% YTD.

Why stay bullish?

Well….

The Fed will cut rates. CapEx continues to grow. Big Tech trades at less than 20 times. Tax refunds will be huge fiscal stimulus. The market might not continue to pay 45x for Walmart’s earnings with 5% growth vs 16 times for Nvidia’s 80% growth.

We are year 4 into a bull market. To ask for a vertical line up is unreasonable. But the consolidation phase we are seeing in the indices along with the overall earnings growth continuing to be strong does not signal to me that now is the time to run for the hills. If everyone is preparing for a crash (short interest in tech is the highest in a decade) it feels like that is the least likely for when a crash happens, especially when valuations have already been materially compressed.

Here’s to hoping March is a bit better as we continue chugging along and analyzing the greatest show on Earth.

Source: amit