| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.2% | 0.5% | -0.4% |
| 2025 |
|---|
| -0.2% |
The Weitz Large Cap Equity Fund returned 0.55% in Q4 2025 versus 2.39% for the Bloomberg U.S. 1000 Index, with the full year return of -0.23% significantly underperforming the index's 17.51% gain. The managers acknowledge these results were unacceptable and attribute underperformance to poor stock selection rather than style headwinds. Healthcare sector strength drove positive contributions during the quarter, with meaningful overweight positioning and strong stock picking in names like Thermo Fisher Scientific and Danaher as organic growth inflected higher. The AI infrastructure trade cooled after a strong summer, though Alphabet benefited from Gemini AI performance. Key detractors included CoStar Group due to heavy Homes.com investment and Charter Communications amid broadband competition. The team implemented significant process enhancements including more stringent entry standards, enhanced position sizing guidelines, and better analytics. The portfolio is now more concentrated with 24 holdings, positioned in companies showing improving momentum. Management expresses quiet confidence about the setup entering 2026, believing the portfolio trades at attractive valuations relative to the broader market.
Focus on owning a concentrated collection of terrific businesses trading at attractive valuations relative to the broader market, with emphasis on companies showing improving operational momentum and profitable growth.
The team has building, quiet confidence about the setup heading into the new year. The Fund owns a collection of terrific businesses that are growing profitably with decent operating momentum. While the portfolio's price-to-value is not overly compelling, it is priced more attractively than the broader market. Improving stories often attract new fans, which can provide extra fuel for outsized returns.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | ADI, CHTR, CSGP, DHR, EFX, GOOGL, IDXX, IEX, IT, KMX, META, ORCL, TMO | AI, Biotechnology, Concentration, healthcare, large cap, Process Enhancement, stock selection, value | - | The artificial intelligence infrastructure trade took a breather after a red-hot summer. Google's Gemini AI surpassed expectations with performance moving to the front of the… |
| Oct 28 2025 | 2025 Q3 | - | Artificial Intelligence, infrastructure, Large Caps, Quality, Value Investing |
MELI MELI |
The fund underperformed as investors sharply divided stocks into AI winners and losers, creating volatility. Holdings like Alphabet, Oracle, and Microsoft benefited from AI infrastructure… |
| Jul 27 2025 | 2025 Q2 | - | AI dispersion, contrarian, Intrinsic Value, large cap, valuation | - | The fund discusses disciplined large-cap investing amid a sharp style divergence favoring momentum and AI-linked stocks. Contrarian holdings lagged in a risk-on rally but are… |
| Mar 31 2025 | 2025 Q1 | IDXX, MSFT | - | - | - |
| Jan 29 2025 | 2024 Q4 | - | - | - | - |
| Sep 30 2024 | 2024 Q3 | GPN, IEX, META | - | - | - |
| Jul 28 2024 | 2024 Q2 | CSGP, CSU, IEX, META, ODFL, VMC | - | - | - |
| Apr 15 2024 | 2024 Q1 | CHTR, GOOG, LBRDA | - | - | - |
| Jan 27 2024 | 2023 Q4 | GPN, VLTO | - | - | - |
| Aug 11 2023 | 2023 Q3 | CHTR, EFX, MCHP | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic | |
| 2025 Q2 |
ValuationAI-related companies continue to command premium valuations while other sectors remain reasonably priced. This valuation divide continues to guide investment activity, with the fund remaining wary of companies trading at exceedingly high valuations that imply exceptional multi-year earnings growth. |
Premium Divide Discipline Stretched Reasonable |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 28, 2025 | Fund Letters | Brad Hinton | MELI | MercadoLibre, Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | Fintech, Free Cash Flow, Key: e-commerce, Logistics, market share, Take rate, Tpv growth | Login |
| Oct 28, 2025 | Fund Letters | Brad Hinton | MELI | MercadoLibre, Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | Fintech, Free Cash Flow, Key: e-commerce, Logistics, market share, Take rate, Tpv growth | Login |
| TICKER | COMMENTARY |
|---|---|
| ADI | Best economics in analog: 70%+ gross margins, 45–50% EBIT target, rising ROIC. Premium positioning: 4X average selling prices, mission-critical sockets, extreme switching costs. Hybrid manufacturing edge: ~5% capex vs. peers 15%+ → superior free cash flow + resilience. Maxim synergies: power + systems mix shift, margin accelerator. Secular and cyclical tailwinds: industrial automation, EV electrification (wireless battery management system), AI data center power & test, 100% ADI alpha hit rate~39% annualized returns in past upcycles and we believe 2Q25 marked the restart; pricing + margin inflection underway. |
| CHTR | Weakest performers included Charter Communications (-24%) |
| CSGP | The shares of CoStar Group, Inc., the global leader in digitizing real estate, declined in the fourth quarter, due to concerns that the company's residential Homes.com platform will continue to require significant capital investment and competitive worries that Google's new real estate advertisement format and Zillow's OpenAI partnership could divert traffic from Homes.com in the years ahead. |
| DHR | After lagging through the first three quarters of 2025, Danaher's stock rebounded during Q4 as bioprocessing, life science, and diagnostics demand continued to recover from a cyclical trough. On the 3Q25 call, management established conservative 2026 growth expectations. Revenue is expected to continue to lag long-term trends at 3-6% but improve throughout the year. |
| EFX | We divested our position in Equifax during the quarter following a strategic shift by FICO, a leading provider of credit scores to the mortgage industry. FICO announced plans to sell its credit scores directly to mortgage underwriters, bypassing the credit bureaus and thereby pressuring the economics that EFX has historically captured in the credit-scoring value chain. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| IDXX | Veterinary diagnostics leader IDEXX Laboratories, Inc. contributed to performance after again reporting better-than-expected financial results. Foot traffic to veterinary clinics in the U.S. remains modestly negative but is poised to recover over the next several years. Even so, IDEXX's excellent execution has enabled the company to continue delivering robust performance. |
| IEX | IDEX's stock had a welcome bounce as the company's organic growth and order book inflected higher in line with our thesis. |
| IT | Gartner is a global leader in research services, with a long history of delivering valuable insights and data to business and technology leaders. In our view, the company has the best brand in IT research, supported by its scale and a compelling customer value proposition. These advantages have driven a long history of strong organic growth and robust free-cash-flow conversion. The stock price has declined meaningfully from recent highs due to investor concerns surrounding AI-related disruption. We believe these concerns are overstated. In our view, Gartner is well-positioned to reaccelerate organic growth due to continued high customer engagement and the large opportunity to sell to new and existing customers. We took advantage of the opportunity to buy shares in this well-managed company at a bargain price. |
| KMX | Over the past five years, CarMax's shares declined by 62%, while Carvana's shares rose by 73%, leaving CarMax's market capitalization at roughly one-tenth of Carvana's today. |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| TMO | Thermo Fisher Scientific was a strong contributor with 8.69% ending weight and 1.47% contribution. |
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