Core Equity Alpha — August 2026 Update

Core Equity Alpha is a systematic, equal-weighted equity strategy that selects holdings by a composite rank blending growth, value, and quality factors. Each month the portfolio rebalances, and this note summarizes the resulting turnover and the factors behind it.
On August 3, 2026, the monthly rebalance replaced 12 stocks out of 100.

Top Industries

The strategy does not target industries. What follows is the result of individual rankings rather than targets or other input. Industries frequently tie at the same number of holdings and are thus listed alphabetically, with no implied ordering.

Rank	August	July	June
#1	Computer Softw/Svcs (9)	Computer Softw/Svcs (8)	Computer Softw/Svcs (7)
#2	Financial Services (8)	Precious Metals (8)	Financial Services (7)
#3	Precious Metals (8)	Financial Services (7)	Precious Metals (7)
#4	Asset Management (5)	Asset Management (5)	Drug (6)
#5	Biotechnology (5)	Biotechnology (5)	Asset Management (5)
Also tied	Telecom. Services (5)	Telecom. Services (5)	Biotechnology, Telecom. Services (5)

Spotlight Buy — Global Payments (GPN)

GPN: Global Payments posted the strongest composite-rank improvement among this month’s additions, driven primarily by growth, with an attractive valuation reinforcing the case. Its January 2026 acquisition of Worldpay and divestiture of Issuer Solutions stepped the earnings base up sharply, and the share price has not followed.

First-quarter 2026 revenue rose 63.1% year-over-year to $2.97 billion following the transaction, and management guided full-year adjusted earnings per share to $13.80 to $14.00 against $12.22 in 2025 — though excluding the transaction, normalized constant-currency adjusted net revenue growth runs closer to 5%.
Shares recently roughly six times the midpoint of that guidance and at approximately book value.
GAAP results reflect a first-quarter 2026 net loss of $1.80 billion, or $(6.59) per diluted share, on Worldpay transaction charges; trailing GAAP multiples are not meaningful, and second-quarter results are due August 5, after this rebalance.

Spotlight Sell — Caesars Entertainment (CZR)

CZR: Caesars saw the sharpest composite-rank deterioration among this month’s removals, driven by forward earnings crossing from positive to negative — a transition the composite treats as a decisive break rather than an incremental change. The company is also subject to a pending all-cash acquisition, so a corporate event and a mechanical ranking signal reached the same conclusion by independent paths.

Second-quarter 2026 results, reported July 28, showed a GAAP loss of $0.30 per share against an estimate of $0.05 — a shortfall large enough to push the full-year forward estimate below zero.
Net revenues rose 3.0% year-over-year to $3.0 billion, but adjusted EBITDA fell to $920 million from $955 million, and net debt stood at $10.8 billion as of June 30, 2026.
On May 28, 2026, the company agreed to be acquired by Fertitta Entertainment for $31.00 per share in cash, approximately $17.6 billion; the shares will be delisted on completion, and the price now tracks deal terms rather than results.

Other Monthly Turnover

Turnover in the strategy is driven by changes in each stock’s composite rank, which blends multiple factors including growth, value, and quality. While trades reflect a combination of shifts across all three factors, we attribute the single factor that moved most decisively in the table below.

	Bought	Sold
Value	5	9
Quality	5	2
Growth	1	0

*This period’s “Other” trades: One purchase due to financials returning to a sensible range; One sale due to delisting following a merger.

Disclaimers

Note on examples. The securities discussed are shown only to illustrate the systematic ranking process underlying the strategy. They do not represent all securities added or removed this period and are not necessarily the most significant, best-performing, or most profitable of those trades. It should not be assumed that any were or will be profitable. Nothing herein is a recommendation to buy or sell any security.

This document is informational and educational. It is not an offer to sell, a solicitation to buy any security, or investment, tax, or legal advice. Receipt of this document does not establish an investment-advisory relationship between Magnifina and the reader.

The strategy relies on third-party fundamental and analyst data for security selection. The continued availability, methodology, and quality of that data is not guaranteed; changes by data providers or errors in third-party data could affect strategy behavior.

All investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. No representation is made that the strategy will or is likely to achieve results comparable to any discussed.