Far View delivered +4.97% in H2 2025 led by Westwing's recovery and Ingenuity's EBITDA inflection. Portfolio reshuffling due to redemptions forced exits of lower-conviction positions. Despite setbacks in Cirata and Trustpilot, recent operational improvements across holdings including guidance raises and strong Q4 results support optimistic 2026 outlook.

Quality growth stocks faced another tough month as UK markets favored Value sectors, but extreme valuation compression has created compelling opportunities. The Fund's high-quality compounders trade at historic discounts despite superior fundamentals, with free cash flow yields exceeding the broader market. Supportive macro conditions and rate cuts position Quality for inevitable leadership rotation.

Global bond fund outperformed benchmark by 6.50% in 2025, driven by emerging market hard-currency debt and selective duration management. Portfolio maintains cautious positioning with moderate duration exposure, significant emerging market allocation, and limited US dollar exposure. Strategy focuses on capitalizing on central bank easing cycles while managing risks from trade tensions and fiscal concerns.

UK small-cap fund underperformed in Q4 as defence stocks fell on peace speculation while construction names rallied on budget relief. Managers see attractive valuations despite macro uncertainty, adding facilities management and veterinary services exposure while trimming outperformers. Portfolio positioned defensively for current challenges but ready to participate in recovery.

Magellan Global Fund positions for strong US earnings growth driven by AI investment boom and fiscal stimulus, expecting 13-14% earnings growth in 2026. Portfolio maximizes risk exposure to quality AI, financial, and consumer names while maintaining defensive allocations. Key risks include AI investment constraints and systemic economic dependence on AI momentum.

Ennismore delivered disappointing Q4 performance as AI disruption fears hammered digital holdings, particularly classifieds down 30-50%. The manager argues disruption risks are overstated given structural moats and provides extensive bear case rebuttal. Multiple recovery catalysts emerge for 2026 including biopharma normalization and Chinese recovery. Portfolio valuations now compelling at mid-teens multiples versus historical averages, creating opportunity for patient capital.

T. Bailey UK Responsibly Invested Equity Fund delivered 3.8% in Q4 through selective financial sector exposure, led by Man Group and NatWest. The fund's focus on financially sound businesses at attractive valuations proved effective despite weak UK economic data. UK equities remain compelling versus elevated US valuations.

Small cap fund outperformed in Q4 2025 with concentrated bets on AI infrastructure and healthcare diagnostics paying off. Molecular diagnostics companies drove performance while AI infrastructure faced volatility over financing concerns. Manager remains positioned for secular digitization trends and AI-driven business spending acceleration despite macro headwinds from labor softening and consumer caution.

Columbia Strategic Income Fund sees compelling bond opportunities in 2026 despite Fed policy uncertainty. The fund targets securities offering attractive yield per duration unit, emphasizing asset-based finance and agency mortgage-backed securities while maintaining credit quality discipline. Growing credit dispersion creates active-return opportunities for research-driven managers.

Distillate Capital maintains valuation discipline in historically expensive markets, with their U.S. strategy trading at double the S&P 500's free cash flow yield. While lagging 2025's valuation-driven rally, their systematic approach of rotating from expensive to cheap stocks has generated superior fundamental growth, positioning them well for potential valuation normalization ahead.

The fund underperformed in Q4 as early 2025 winners gave back gains and insurance holdings lagged. AI momentum continued with TSMC raising guidance on explosive demand, while the energy transition accelerated with record clean tech investment. The manager initiated AI-enabling positions while maintaining focus on sustainable companies positioned for long-term secular trends.

Magellan Global Opportunities delivered 13.0% in 2025, outperforming benchmarks through selective positioning in quality companies. AI leaders like Alphabet drove performance while defensive positioning in consumer staples like Nestlé provides stability. Despite positive fiscal and monetary catalysts for 2026, elevated valuations and geopolitical risks support continued defensive approach focused on sustainable competitive advantages.

Bison targets undervalued oil and gas equities at a cyclical bottom. Structural underinvestment since 2014 combined with growing demand from AI data centers and developing countries creates supply-demand imbalance. Portfolio trades at deep discounts with 20%+ FCF yields expected, offering significant upside as the cycle turns while providing downside protection through reserve value discounts.

Dodge & Cox Stock Fund returned 13.66% in 2025, underperforming the S&P 500 as growth stocks dominated. The fund maintains its value discipline, trading at 14.6x forward earnings versus 22.9x for the S&P 500. Key moves included trimming cyclical banks while adding to insurance brokers and contrarian positions in Fiserv and Charter Communications at compressed valuations.

Japan Opportunities Fund outperformed in Q4 as new PM Takaichi's pro-growth policies and robust corporate results drove Japanese equities to all-time highs. Construction and e-commerce holdings led gains while industrial gas faced macro headwinds. Fund added pharmaceutical exposure and remains focused on quality businesses to navigate volatility while capitalizing on inflation pass-through and AI opportunities.

Alger Mid Cap Focus Fund concentrates in 50 mid-cap growth companies undergoing Positive Dynamic Change. The fund delivered 14.98% returns in 2025, significantly outperforming benchmarks through fundamental research and high conviction positioning in technology, healthcare, and industrial sectors with 74.60% active share.

T. Bailey Global Thematic delivered 3.81% in Q4 through diversified exposure to AI, commodities, and healthcare themes. Gold hit new highs while copper surged on electrification demand. The fund added emerging markets and Japan income exposure while maintaining geographic diversification. Manager emphasizes valuation discipline and broad opportunity access amid policy uncertainty and AI monetization questions.

Baillie Gifford's concentrated international growth fund declined 0.63% in Q4 despite strong underlying fundamentals across AI, e-commerce, and streaming holdings. Near-term margin pressures at MercadoLibre, Spotify, and Sea Limited offset gains from semiconductor leaders TSMC and ASML. Managers maintain conviction in structural growth themes and 10-year investment horizon approach.

Baillie Gifford's international growth fund underperformed in Q4 despite strong AI semiconductor momentum. New SK Hynix position capitalizes on structural memory demand while Spotify and Sea Limited faced near-term headwinds. Managers maintain long-term conviction in portfolio companies' earnings growth potential, emphasizing their active approach and five-year investment horizon through market volatility.

Lyrical delivered 17.9% returns in 2025, matching the S&P 500 without Magnificent Seven exposure while outperforming value benchmarks. Their portfolio trades at a 78% discount to the market with superior 10.6% earnings growth. Strong travel sector performance offset payment processor weakness. The firm sees opportunity in current wide valuation spreads.

Forty Fund underperformed in Q4 as AI volatility hurt Oracle and Eaton despite strong fundamentals. Healthcare outperformed with Eli Lilly's GLP-1 success and Madrigal's MASH leadership. Managers remain optimistic on 2026 given stable growth, potential Fed easing, and secular trends in AI, life sciences, and digital transformation through disciplined stock selection.

Alger Spectra underperformed in Q4 2025 despite strong secular themes. AI infrastructure faced scrutiny over financing and returns, pressuring holdings like Nebius and Meta. Winners included Alphabet's improving AI execution and Natera's diagnostic strength. Managers remain constructive on digitization, cloud growth, and AI inflection despite near-term volatility and capacity constraints.

RTW delivered 35.7% YTD returns as biotech ended four years of underperformance with major indices beating broader markets. Strong M&A activity ($105B) and policy clarity drove the turnaround. The firm expects continued outperformance in 2026 from innovation, financing strength, and further consolidation as the sector enters early innings of a new bull cycle.

Comus delivered 43-83% returns in 2025 by capitalizing on Hong Kong small-cap recovery after loading up during 2022-2024 downturn. Broker restrictions hurt US clients. With few bargains remaining and elevated market prices, cash positions are rising to all-time highs as the manager waits patiently for better opportunities.

L1 Long Short Fund delivered 46.8% annual returns in 2025, significantly outperforming the ASX200AI's 10.3%. The manager views Australian large caps as overvalued and focuses on undervalued offshore opportunities, particularly in infrastructure, gold, U.S. cyclicals, uranium and value stocks. Portfolio maintains strong value skew with quality companies offering compelling risk-adjusted returns globally.

Contrarius delivered 54.4% returns in 2025 by positioning for AI disruption through three investment buckets: AI winners, AI-proof companies, and avoiding AI-threatened businesses. Key contributor EchoStar transformed via strategic spectrum sales, providing valuable SpaceX exposure at discount valuations. Fund maintains concentrated positions in high-conviction technology and consumer names while avoiding disruption-threatened sectors.

UOB Asset Management takes strategically neutral positioning as markets face inflection point with tariff headwinds peaking Q4 2025. Assigns 50% probability to continued growth versus 50% combined recession/stagflation risk. Overweights Asia and Europe equities, underweights US, maintains gold overweight. Expects 1-2 Fed cuts, inflation rising to 3-4%, and 10-year yields ranging 4.00-4.50%.

Gold has outperformed all major assets when measured as real money, with the dollar losing 58% of its value since October 2023. The manager sees gold miners entering a multi-year bull market as Fed monetary policy loses effectiveness and the dollar's reserve status erodes. Silver offers additional upside from industrial demand and supply constraints.

Traditional finance firms entering crypto derivatives face operational challenges from fragmented market structure, 24/7 trading, and lack of standardization. Solutions include specialized technology partners, prime brokerage for capital efficiency, institutional custody, and market maker relationships. Market structure is converging toward traditional standards with growing institutional adoption driven by regulatory clarity and improved infrastructure.

2025's extreme volatility from tariff policy uncertainty ultimately rewarded patient investors, with the S&P 500 recovering from a 21% drawdown to finish up 18%. While speculation returned through record SPAC activity and margin debt, mixed signals including historically low sentiment amid new market highs suggest success will come from valuation discipline rather than narrative timing.

Chevy Chase Trust expects muted 2026 equity returns after strong 2025 performance. The firm focuses on five investment themes including inflation normalization, international opportunities, specialized technology, genomic medicine, and automation. Manager reduced AI exposure due to valuation concerns while maintaining diversification through position trimming. Economic tailwinds from fiscal stimulus offset by midterm election dynamics and unemployment risks.

2025 proved the power of global diversification as international markets crushed US performance, with emerging markets up 33.6% and developed ex-US up 31.9% versus US equities at 17.3%. AI themes broadened beyond mega-caps while trade tensions eased. Dollar weakness amplified international returns. Outlook for 2026 remains constructive across regions and sectors.

Massif Capital delivered 50% net returns in 2025 through concentrated exposure to mining and energy. The manager argues markets are transitioning from post-2009 regime assumptions, requiring methodological adaptation to persistent inflation and geopolitical fragmentation. Portfolio emphasizes companies with mid-cycle economics over directional commodity bets, with plans to diversify into broader real-assets opportunities as mining valuations normalize.

Diversified portfolios returned to favor in 2025 as the Fed's policy pivot supported a soft landing with inflation cooling below 3% and international markets leading with 30%+ gains. Fixed income restored its ballast role with 7%+ returns. Despite AI headlines, no single driver dominated, validating the team's balanced global approach heading into 2026.

Value spreads at historic extremes create upside potential as AI adoption must broaden beyond technology in 2026 to justify massive capital investment. Portfolio holds faster-growth companies at lower valuations than benchmark, positioned for AI adoption in underpriced sectors while maintaining exposure to real assets and cash-generating companies with strong fundamentals.

ClearBridge's small cap growth strategy underperformed in Q4 amid biotech rally and IT earnings disappointments, but managers are optimistic for 2026. Small cap earnings growth is set to exceed large caps for the first time in over a decade, while market leadership should broaden beyond AI infrastructure. Attractive valuations and accelerating capital markets support their constructive outlook.

Markets finished 2025 strong but a K-shaped economy is widening inequality between higher and lower-income consumers. Inflation cooled to 2.7% while credit stress builds with record card limits. The Fed turned accommodative with rate cuts and QE restart. Political pressure from low approval ratings drives affordability focus. Robust earnings growth expected supports staying diversified with selective opportunities.

Moon Capital initiated Molina Healthcare at $160, down from $300, viewing it as a mispriced Medicaid compounder with transitory margin pressure. Despite industry losses, Molina maintains 250bp MLR advantage over peers. Contractual rate resets should normalize margins, creating 2-3x upside potential as earnings power becomes evident.

Capicraft's multi-asset strategy delivered 32.66% in 2025 by positioning in real assets ahead of the next commodity cycle. Oil trades at historically cheap levels with supply constraints building, while gold benefits from central bank demand and geopolitical tensions. Chinese capital flows and US monetary accommodation favor emerging markets and commodities over overvalued technology stocks.

MacNicol successfully navigated 2025's volatility by focusing on real assets and precious metals, which delivered exceptional returns as gold rose 64% and silver surged 142%. The firm maintains that active investing requires trusting your compass rather than chasing trends, with 2026 outlook shaped by Fed transition, midterm elections, and AI's evolution from spending to productivity.

Citco's December 2025 hedge fund data shows strong industry performance with 1.9% weighted average returns led by Global Macro funds at 4.7%. Despite positive performance, the industry saw typical year-end outflows of $16.1bn, concentrated in Multi-Strategy and Equity strategies. Market volatility hit yearly lows, reflecting calm conditions.

Q4 2025 marked a notable rotation from Growth to Value leadership as equities continued outperforming other asset classes. International markets led U.S. benchmarks while sector performance broadened beyond mega-cap technology. Fed rate cuts and easing financial conditions supported markets, with cyclical Value sectors positioned to benefit from continued economic momentum and monetary easing in 2026.

Elliott opposes Toyota Industries' ¥18,800 tender offer as 40% below intrinsic value of ¥26,134 per share. The activist proposes a standalone plan targeting ¥40,000+ by 2028 through operational improvements and cross-shareholding unwinds. Views this as a critical test of Japanese corporate governance reforms and minority shareholder rights.

Q4 2025 concluded a volatile year dominated by AI investment surge and Trump's political influence. Emerging markets led by South Korea significantly outperformed U.S. equities. Looking ahead, strategists expect continued but moderate returns driven by AI integration and monetary stimulus, with particular upside for Europe and emerging markets.

Manager maintains defensive positioning amid historically expensive markets (41x CAPE) while pursuing undervalued international opportunities. Key catalyst-driven holdings include Metro Bank's MREL exit and transformation, PTSB's pending sale, and Warner Brothers Discovery's acquisition battle. DCC offers focused energy distribution exposure post-divestitures. Portfolio concentrated in special situations with multiple rerating catalysts despite challenging macro environment.

Momentum dominated global markets in 2025 with extreme outperformance, but leadership has turned increasingly speculative since Liberation Day. Meme stocks, SPACs, and unprofitable companies now drive returns over fundamentals. Historical patterns suggest such extreme momentum periods create attractive long-term opportunities for patient value investors as valuation spreads widen and quality companies get left behind.

Peak Asset Management maintains defensive positioning amid market overvaluation concerns, owning quality large-cap technology companies while holding Treasury Notes and cash as safe havens. The firm focuses on intrinsic value investing, citing Buffett's warnings about market froth, and expects AI data center spending and Fed leadership changes to drive markets ahead.

Brummer Multi-Strategy delivered 8.9% net returns in 2025 driven by strong long/short equity alpha generation, particularly on shorts. Despite challenging conditions from trade policy volatility and AI market concentration, the diversified approach proved resilient. Systematic strategies struggled with choppy markets while fixed income expansion progressed. Elevated valuations and multiple macro risks warrant cautious positioning despite positive sentiment entering 2026.

Surowiec positions for market rotation from AI speculation to traditional value, maintaining diversified mega-cap anchors while building cyclically depressed quality businesses with strong buyback programs. Rivian leads as the most exciting position with proprietary technology development. Economic fragility persists beneath AI-driven headline strength, but early rotation signals support the patient value strategy targeting durable cash flows over speculative promises.