| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.1% | 0.5% | 2.4% |
| 2025 | 2024 |
|---|---|
| 2.4% | 15.4% |
The Weitz Partners III Opportunity Fund returned 0.67% in Q4 2025 and 3.17% for the full year, underperforming the Bloomberg U.S. 3000 Index's 17.21% annual return. The fund's AI Winners including Alphabet, Microsoft, Amazon and Meta Platforms averaged 16% of assets and delivered solid returns, with Alphabet leading performance after its Gemini AI release exceeded expectations. However, deep value stocks averaging 16% of assets had disproportionately negative impact, while life sciences investments representing 18% of assets experienced a lost year due to research budget pressures and healthcare scrutiny. The managers sold CarMax due to challenging fundamentals and competitive pressures but maintained Liberty Broadband despite headwinds, citing Charter's durable cash flows and improving free cash flow outlook as network upgrade spending peaks. The fund ended with 93% net long exposure, reflecting selective positioning in high-quality businesses while maintaining patience for value opportunities to materialize.
The fund maintains a concentrated portfolio of high-quality, durably growing businesses while taking contrarian value positions, despite underperformance in 2025 due to challenging conditions for deep value stocks and life sciences investments.
The managers look forward to an improved cash flow posture for Liberty Broadband in 2026, await a more robust auto market for SiriusXM, and expect more operating details from Global Payments following the Worldpay acquisition closure.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | AMZN, AON, BRK-A, CHTR, DHR, EEFT, GOOGL, GPN, IEX, KMX, LBRDA, LH, MA, META, MSFT, ROP, SIRI, TECH, TMO, V | AI, Biotechnology, contrarian, healthcare, Long/Short, technology, value |
GOOGL KMX CHTR PRM BRK.B |
The fund owned several companies deemed AI Winners including Alphabet, Microsoft, Amazon and Meta Platforms, averaging roughly 16% of Fund assets in 2025. Google's latest… |
| Oct 28 2025 | 2025 Q3 | - | Artificial Intelligence, Hyperscalers, infrastructure, Quality, Value Investing | - | The fund modestly outperformed in a volatile quarter as quality holdings like Alphabet and Perimeter Solutions led returns, while Liberty Broadband detracted. Management noted that… |
| Jul 27 2025 | 2025 Q2 | BRK/A, CSGP, KMX | asymmetric returns, Capital discipline, dislocation, flexibility, opportunity | KMX | The commentary emphasizes capitalizing on idiosyncratic opportunities created by corporate actions, market dislocations, and investor overreactions. Management stresses downside protection through conservative balance sheets while… |
| Mar 31 2025 | 2025 Q1 | - | - | - | - |
| Jan 29 2025 | 2024 Q4 | ODFL, TECH | - | - | - |
| Sep 30 2024 | 2024 Q3 | GOOG, LBRDA, LM0B GR, PRM | - | - | - |
| Jul 28 2024 | 2024 Q2 | AON, CSGP, GPN, IEX, LYV, ODFL, SIRI | - | - | - |
| Apr 15 2024 | 2024 Q1 | CHTR, GS, LBRDA, META | - | - | - |
| Jan 27 2024 | 2023 Q4 | - | - | - | - |
| Aug 11 2023 | 2023 Q3 | CCRD, LBRDA, META, QRTEB | - | - | - |
| Jul 20 2023 | 2023 Q2 | AMZN, MSFT | - | - | - |
| Mar 31 2023 | 2023 Q1 | FIS, LSXMA, META, SCHW | - | - | - |
| Oct 26 2022 | 2022 Q3 | CSGP, KMX, LBTYK, META | - | - | - |
| 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 |
TechnologyHoldings span social media, online search, cloud computing and e-commerce including select Magnificent 7 positions. They also own semiconductor companies at reasonable valuations, including picks and shovels businesses like Applied Materials with strong competitive positions and long track records of value creation. |
Technology Semiconductors Cloud Social Media E-commerce | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 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 |
Opportunity |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 29, 2026 | Fund Letters | Wally Weitz | CHTR | Charter Communications Inc. | Communication Services | Cable & Satellite | Bull | New York Stock Exchange | broadband, buybacks, CapEx cycle, Connectivity, Free Cash Flow | Login |
| Jan 29, 2026 | Fund Letters | Wally Weitz | PRM | Perimeter Solutions SA | Industrials | Specialty Chemicals | Bull | New York Stock Exchange | government contracts, infrastructure, Pricing, Volatility-Reduction, Wildfire | Login |
| Jan 29, 2026 | Fund Letters | Wally Weitz | BRK.B | Berkshire Hathaway Inc. | Financials | Multi-Sector Holdings | Bull | New York Stock Exchange | capital allocation, conglomerate, Defensiveness, Insurance, Succession | Login |
| Jul 27, 2025 | Fund Letters | Wally Weitz | KMX | CarMax, Inc. | Consumer Discretionary | Automotive Retail | Bear | New York Stock Exchange | affordability, Credit, Margins, Rates, Usedcars | Login |
| Jan 29, 2026 | Fund Letters | Wally Weitz | GOOGL | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, scale, Search | Login |
| Jan 29, 2026 | Fund Letters | Wally Weitz | KMX | CarMax Inc. | Consumer Discretionary | Automotive Retail | Neutral | New York Stock Exchange | Competition, Execution, Margins, retail, Used cars | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| AON | increased exposure to insurance brokers (Aon and Willis Towers Watson) |
| BRK-A | Miles mentioned that he had been a long-term shareholder of Berkshire Hathaway and had never sold his shares. Over roughly twenty-five years, his investment compounded at about 10.9% annually. The first dollar he invested became approximately thirteen dollars. Since around 1990, Berkshire has only marginally outperformed the S&P 500. By Buffett's own historical standards, this period could be described as mediocre. And yet, admiration for Buffett has not faded—if anything, it has intensified. |
| CHTR | Weakest performers included Charter Communications (-24%) |
| 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. |
| EEFT | In 2025 we realized ~60% of these gains (mostly long-term) and rolled the remainder into its acquirer, Euronet Worldwide (EEFT). There is a bear market for legacy payments stalwarts like EEFT, but it is profitable and cash generative, trades for a single digit valuation and has several potential growth tailwinds including the benefits from the CCRD purchase that may reward investors over time. |
| 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. |
| GPN | Global Payments shares fell as the company announced the acquisition of payment processing company Worldpay. Due to reduced conviction in the investment thesis, we sold our position earlier in the year. |
| IEX | IDEX's stock had a welcome bounce as the company's organic growth and order book inflected higher in line with our thesis. |
| 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. |
| LBRDA | Charter Communications (down 24.1%) was again hammered, and similarly Liberty Broadband (a Charter tracking stock) was down 23.8%. With them together accounting for around 7.6% of the Fund, these positions cost us dearly. And with both now down almost 50% over the year, it is not just a quarterly phenomenon. |
| LH | Shares of leading diagnostic lab Labcorp declined amid investor concern surrounding lower-than-expected guidance, driven by delays in acquisition closings and weakness in its development pipeline, leading to a restructuring of that business. However, we maintain our conviction in the company's competitive advantages in the diagnostic space, as the company's scale allows it to be a low-cost provider with better-than-average margins. |
| MA | The enduring appeal of card payments is their universality. Consumers trust that Visa and Mastercard will be accepted globally. After more than 20 years of litigation, Visa and Mastercard agreed to yet another settlement that gives merchants greater flexibility |
| 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. |
| ROP | After a decade-long partnership with Roper Technologies, we have made a strategic decision to exit our position. Our decision to sell was based on three factors. Firstly, Roper's organic growth rates have begun to lag its pure-play software peers. Secondly, we believe many of these businesses are approaching market saturation, which limits their future growth prospects. Lastly, the valuation no longer provides an attractive margin of safety given the first two challenges. |
| SIRI | SiriusXM shares stalled as we await a more robust auto market and the end of the current satellite investment cycle. |
| TECH | Bio-Techne is a leader in the life sciences research market with a broad portfolio of products that are used to enable discoveries of new drugs, therapeutics, and diagnostics. These products include over 6,000 proteins, 400,000 antibody types, and 2,400 diagnostic assays. Around 80% of the business is recurring revenues. We are encouraged by the new CEO's strategy to leverage the core business and expand the company's leadership position in protein research. Consternation surrounding the health of customer research spending gave us the opportunity to buy the stock at a discount to our estimate of intrinsic value. |
| TMO | Thermo Fisher Scientific was a strong contributor with 8.69% ending weight and 1.47% contribution. |
| V | There were companies there such as Visa, which we own, as well as many we do not, and which would not likely be appropriate for this mandate. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
