| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 23.7% | - | - |
| 2025 |
|---|
| 25.6% |
Ophir delivered strong performance in 2025 with three of four funds outperforming benchmarks, driven entirely by stock selection rather than factor exposures. The Global Opportunities Fund returned 25.6% after fees versus 9.9% for its benchmark, with outperformance attributed to bottom-up due diligence. Despite significant narrative volatility throughout 2025, including Trump 2.0 policies and geopolitical tensions, the same market leadership persisted with U.S. large cap growth and mega cap technology stocks continuing to dominate. However, the managers believe this pattern will not continue into 2026. The key development is that small cap earnings expectations relative to large caps are finally improving after years of underperformance, supported by Fed rate cuts, falling oil prices, tax benefits, and deregulation. This represents the missing catalyst that investors have been waiting for to drive sustained small cap outperformance. Combined with improving momentum in cyclical sectors and broader market participation, this earnings improvement sets up favorable tailwinds for small cap specialists like Ophir.
Despite macro volatility and narrative shifts in 2025, the same market leadership persisted with large cap growth and mega cap tech continuing to outperform. However, the missing ingredient for sustained small cap outperformance - earnings growth - has finally arrived, setting up favorable conditions for small cap specialists like Ophir in 2026 and beyond.
The managers believe 2026 will not see a continuation of large cap growth outperformance for a fourth consecutive year. They expect small cap outperformance to be sustained, driven by improving earnings growth relative to large caps, supportive economic backdrop, and broader market participation. This shift is expected to provide favorable tailwinds for their funds going forward.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 21 2026 | 2025 Q4 | AAPL, GOOGL, META, MSFT, NVDA | earnings, global, Outperformance, small caps, stock picking, technology | - | After prolonged underperformance, small caps are positioned for sustained outperformance as the missing ingredient - earnings growth - has finally arrived. Small cap earnings expectations relative to large caps are improving for the first time since 2022, supported by cyclical economic factors and broader market participation. Earnings are identified as the primary long-term driver of index performance and the key catalyst that has been missing for sustained small cap outperformance. Small cap earnings expectations relative to large caps are now showing compelling evidence of improvement after years of underperformance. |
| Nov 30 2025 | 2025 Q3 | - | earnings, Factors, growth, interest rates, small cap | - | The letter emphasizes growth investing through a factor-aware lens, acknowledging that short-term performance is often driven by macro and factor rotations rather than fundamentals. Higher-for-longer interest rate expectations temporarily hurt growth stocks, but earnings growth remains the ultimate driver of returns. The manager views growth drawdowns as cyclical and expects recovery as fundamentals reassert themselves. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
EarningsEarnings are central to the manager's optimism with consensus expectations pointing to meaningful acceleration in small-cap earnings in 2026, with growth projected in the low-to-mid teens and exceeding that of large-cap companies. This anticipated rebound reflects easier year-over-year comparisons, improving operating leverage, and broadening demand across cyclical and value-oriented sectors. |
Earnings Growth Operating Leverage Cyclical Sectors Consensus Estimates Earnings Revisions |
Small CapsSmall caps getting strong start in 2026 supported by easing monetary conditions and constructive fiscal backdrop. Small caps more sensitive to economic cyclicality which is overdue for expansion. Expected to grow at better pace than large caps in 2026 after long period of underperformance. |
Value Growth Cyclical Monetary Policy Fiscal Policy | |
| 2025 Q3 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| 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. |
| 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. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
