Risk factors

Alight completed the divestiture of its Professional Services and Payroll and HCM Outsourcing businesses in July 2024 to focus on employee wellbeing and benefits.

Clinical-stage biotechnology company dependent on the success of its lead product candidate pemvidutide for obesity and MASH. Substantial operating losses and reliance on external financing to fund ongoing development and clinical trials. Heavy dependence on third-party manufacturers and contractors for clinical trials and supply chain.

AnaptysBio faces typical clinical-stage biotech risks dominated by trial outcomes for rosnilimab, ANB033, and ANB101, heavy reliance on GSK collaboration, and the need for significant future capital.

Ardent Health's risks are dominated by heavy geographic concentration in Texas and Oklahoma, significant exposure to Medicare and Medicaid reimbursement, and complex regulatory compliance burdens as a newly public company.

Ares Management faces dominant risks from fund capital-raising pressures, intense industry competition, extensive regulatory burdens, and key executive dependence.

Arlo relies heavily on Amazon Web Services and third-party manufacturers like Foxconn for its smart security products and services.

Alliance Resource Partners faces heavy risk from coal demand declines, stringent climate regulations, and customer concentration.

Atlantic Union Bankshares faces material concentration risks in commercial real estate lending and commercial and industrial loans. The company’s near-term profitability and stock performance are heavily tied to the successful closing and integration of the Sandy Spring merger. Rapid technological change and cyber-attacks on third-party vendors threaten customer data and core banking operations.

Aurinia is heavily dependent on the commercial success of its sole approved product, LUPKYNIS, and the clinical development of AUR200. Restructurings in 2024 significantly reduced headcount by 25% and 45% to cut operating costs.

CLO structures and subordinated membership interests create significant payment, control, coverage-test and portfolio-management risks.

Concentrated exposure to office buildings in Philadelphia and Austin drives asset valuation and operational performance risks. Complex development, joint ventures, and capital-intensive financing needs dominate the risk profile. Strict REIT compliance and tax rules constrain capital allocation and leverage strategies.

Bright Horizons relies heavily on recruiting and retaining qualified teachers amidst rising labor costs and wage inflation. The company is vulnerable to shifts toward remote work that reduce demand for center-based child care. Adverse publicity regarding child safety incidents or data breaches poses severe reputational and financial risks.