Alpinum turned defensive amid Iran conflict oil shock and AI disruption, reducing market exposure while emphasizing capital preservation. Geopolitical tensions elevated volatility and tail risks beyond negligible levels. Despite resilient macro backdrop, energy-driven stagflation concerns and technology disruption created bifurcated markets. Maintaining flexibility for selective deployment if tensions ease and attractive entry points emerge.

XPEL dominates the Paint Protection Film market with strong competitive moats and secular growth tailwinds. After years of investment, the company is positioned for operating leverage with management targeting margin expansion from 13% to 26% through vertical integration. Trading near historical lows despite improving fundamentals, XPEL offers 100-250% upside potential through FY28.

Amber River faced Q1 2026 volatility from Iran conflict after strong start, with oil spiking to $100 and rate expectations reversing. Manager added to discounted UK banks and quality bonds while reducing emerging market exposure. Portfolio performance mixed by risk level but resilient given circumstances. Outlook depends on conflict resolution timeline with emphasis on selective value opportunities.

Andrew Hill positioned defensively through Q1 2026's geopolitical turmoil, with portfolios outperforming the SP500 by nearly 1%. The Iran war and AI disruption drove market volatility, prompting risk reduction through trimmed equity exposure and added hedges. Core holdings in energy infrastructure, natural gas producers, and AI leaders like Nvidia reflect positioning for structural trends despite economic headwinds and high uncertainty.

Loeb navigates AI-driven market chaos by focusing on undervalued companies with defensible positions less susceptible to immediate AI displacement. Sold NVO for competitive reasons, added to DAVA as undervalued versus peers, initiated FND as long-term value play on margin recovery. Remains open-minded about AI paths while seeking opportunities in current disruption.

Aristotle Core Equity outperformed the S&P 500 in Q4 2025 through strong healthcare and consumer discretionary stock selection, despite AI infrastructure concerns pressuring tech holdings. The manager added exposure to business services, crypto infrastructure, and food distribution while maintaining focus on companies with secular tailwinds amid elevated valuations and broadening economic growth expectations for 2026.

Atai Capital's concentrated micro-cap strategy delivered strong 2025 returns despite Q4 underperformance. The fund maintains elevated cash levels due to limited attractive opportunities but stands ready to deploy capital as recent macroeconomic volatility creates potential investments. The manager continues evolving toward quality names while prioritizing selectivity over forced deployment in an unfertile market environment.

Bahl & Gaynor maintains their dividend growth focus amid Iran conflict volatility, viewing growing dividends as protection during tightening financial conditions. Energy outperformed while defensive sectors declined. The firm avoids emotional reactions, instead seeking mis-pricings created by market volatility while emphasizing companies with internal capital generation capabilities over those dependent on external funding sources.

Baumann's Primary Research Fund added SOL Group, combining Europe's leading industrial gas franchise with the largest home respiratory care provider. The dual-engine model benefits from aging demographics and healthcare system shifts while creating regional oligopolies through century-built infrastructure. The manager prioritizes AI-resistant, durable businesses that can compound for decades over traditional valuation metrics.

Bireme Capital delivered 33% returns in 2025 by shorting overvalued US stocks while buying discounted international equities. The manager sees American institutional decay accelerating under current administration while US markets trade at bubble-like valuations amid extreme speculation. International markets offer compelling alternatives at significant discounts, positioning the portfolio for continued outperformance as these trends persist.

Broadleaf declined 8.3% in Q1 2026 amid Iran war, private credit blowups, and AI fatigue morphing into software sector disruption. Manager adopts waiting strategy given binary risks and lack of conviction despite daily trade considerations. Believes fundamentals remain strong for AI spending beneficiaries and hyperscalers long-term.

Bumbershoot delivered 13% returns through concentrated positions in technology, materials, and industrials while preparing for the next substantial reflation cycle. As market narratives narrow and credible opportunities become scarce, the fund's disciplined selection process and willingness to hold concentrated positions longer positions it well for an environment where stock-picking expertise will be paramount.

ByteTree shifts to defensive positioning following oil shock, reducing equity exposure and adding commodity diversifiers. Manager prioritizes capital preservation over gains amid geopolitical uncertainty, maintaining exposure to energy, quality stocks, and building recovery watchlist. Strategy awaits war resolution and economic recovery signals before redeploying capital into abundant opportunities expected to emerge.

Centerstone Investors Fund is closing effective January 9, 2026, with all shares converting to FPA Crescent Fund. The manager thanks shareholders for their trust and emphasizes that FPA Crescent's philosophy aligns with Centerstone's principles of patience, discipline, and long-term perspective, positioning shareholders well for the transition.

AI disruption has created indiscriminate selling in software stocks, presenting value opportunities in quality companies with strong fundamentals. Cove Street Capital has positioned in names like Clarivate while warning of systemic risks in private credit markets and potential Fed policy changes. The manager focuses on fundamental work over market timing, believing current messiness creates opportunities.

DKAM operates a concentrated small cap Canadian portfolio with 10% cash following strategic exits from GoEasy and Constellation Software. Holdings like Zedcor, Blue Ant, and VitalHub are positioned for record 2026 performance. Small caps trade at 30-year lows versus large caps despite superior growth prospects. Fund expects 63% earnings growth at 9.2x P/E while S&P 500 trades at 21.8x for 14% growth.

Eagle Point Capital concentrates in cockroach-like businesses with enduring competitive advantages and physical infrastructure, avoiding technology-dependent pandas. Holdings like McKesson, AutoZone, and tobacco companies satisfy timeless human needs through mission-critical services. The firm prioritizes durability over novelty, believing physical infrastructure changes slower than digital alternatives, enabling long-term compounding through unpredictable environments.

Q1 2026 saw geopolitical tensions from Iran conflict introduce uncertainty while equity market leadership rotated from mega-caps to smaller companies and international markets. Despite private credit concerns and elevated AI spending risks, above-trend growth prospects remain intact supported by fiscal stimulus and productivity gains, with small caps positioned to benefit from reasonable valuations.

Commodity bull market in early stages with energy offering best opportunities as Hormuz closure exposes oil market tightness. Silver's parabolic rally triggers precious metals sell signal while uranium demand surges amid supply constraints. Chinese copper demand stalls, creating surplus conditions. Coal surprisingly rebounds on data center demand. Energy commodities most undervalued globally.

Market concentration reached historic extremes in 2025 with AI infrastructure and unprofitable companies dominating returns. Quality businesses trade at historically cheap multiples while the market remains levered to a singular AI theme. This creates significant opportunities for active managers to capitalize on valuation disparities between winners and losers.

Hennessy Balanced Fund systematically invests 50% in the highest dividend-yielding Dow stocks and 50% in short-term Treasuries. This Dogs of the Dow approach delivered 9.89% returns in 2025 while providing balanced exposure between income-generating equities and capital preservation through government securities, though formula-based investing creates inherent inflexibility risks.

Hennessy Cornerstone Growth Fund uses a quantitative formula to select 50 US growth stocks with strong price momentum, earnings growth, and attractive valuations. The fund maintains equal weightings and rebalances annually, currently concentrated in Financials. The systematic approach combines growth and value factors but faces risks from formula constraints and high turnover.

Balanced fund targeting long-term capital growth and income through 70% equity allocation in high-quality dividend-paying companies and 30% fixed income securities. Emphasizes downside protection and reduced volatility with focus on shareholder-oriented management and intermediate-term bonds. Currently concentrated in Financials sector with 4.42-year average bond maturity.

Concentrated technology fund investing in 60 equally-weighted stocks selected through quantitative screening for cash flow generation, profitability, and attractive valuations. High turnover strategy rebalanced quarterly with focus on companies exceeding $175 million market cap. Strong historical performance with significant volatility typical of technology sector concentration.

JPMorganChase delivered record 2025 results with 20% ROTCE while launching a $1.5 trillion security initiative. Management sees AI as transformational and expects to deploy $40 billion excess capital at good returns. Near-term tailwinds from stimulus and deregulation are offset by geopolitical risks, high debt levels, and elevated asset prices requiring scenario planning.

Kingdom Capital delivered 8.01% net returns in Q1 2026, outperforming indices during volatile conditions. Special situation strategy proved effective with successful exits from TSS, Energous, and SunOpta. New significant position in Alliance Entertainment offers attractive valuation with exclusive distribution agreements. Portfolio maintains balanced exposure to undervalued small-caps with broad opportunity set ahead.

Militia Capital posted 19% Q1 returns through superior multi-manager execution, with individual PMs delivering 23-37% performance. This final hedge fund letter announces a strategic pivot toward building a comprehensive financial services platform featuring AI-powered investing, ETFs, and brokerage services, while promoting top performers to partnership roles.

Night Watch delivered 2.69% in volatile Q1 2026 by owning counter-cyclical businesses that benefit from uncertainty. Strong performance from Brookdale senior living, AAR aerospace maintenance, and Marex futures clearing. Portfolio positioned to withstand geopolitical risks while benefiting from demographic trends, defense spending, and market volatility rather than trying to time unpredictable events.

North Sky Capital delivered strong Q1 results capitalizing on the $2.3 trillion infrastructure cycle and fragmented impact secondaries market. Clean Growth VII launched with first investment while sustainable infrastructure advanced battery storage and solar projects. Portfolio companies benefit from AI energy demand, commodity price increases, and regulatory shifts. Firm expects continued outperformance in compelling investment environment.

Oceana emphasizes price discipline over political predictions in Brazilian markets. Following 2024's extreme pessimism, Brazilian equities rose 34% in 2025 as valuations normalized. Portfolio's implied real IRR declined from 15%+ to 11.6% but remains adequate for compounding returns. Firm maintains focus on quality assets with margin of safety ahead of 2026 elections, viewing valuation as better protection than narrative timing.

Q1 2026 saw markets navigate Iran war-driven oil price surge and inflation concerns, with S&P 500 down 4.4% but showing broadening as value outperformed growth and equal-weight beat cap-weight by 500bp. Energy soared 38% while tech lagged on AI concerns. Fed held rates steady amid policy uncertainty.

Peterson Investment Fund I's 63.8% return in 2025 demonstrates the power of concentrated value investing in exceptional businesses. The fund's systematic approach combines rigorous fundamental analysis, disciplined entry pricing through structured options, and patient capital allocation across a focused portfolio of compounding machines like Alphabet, Berkshire, and Alibaba, delivering 13.7% annualized returns since inception.

Polen 5Perspectives Small-Mid Growth delivered modest Q4 underperformance but strong 28.86% annual returns, significantly outpacing benchmarks. Portfolio benefits from AI infrastructure demand through Bloom Energy and Sandisk, while maintaining conviction in Electrification and Aerospace themes. Management focuses on innovation-driven structural opportunities rather than macro timing, positioning for continued SMID cap disruption and growth.

Nordic fund manager navigates Middle East crisis by actively trading volatility-driven disconnects while positioning for structural energy transition catalyst. Meaningful Nibe investment reflects conviction that European energy independence will drive heat pump demand regardless of conflict outcome. Hedged strategies provided downside protection during market stress, demonstrating value of active management over passive indexing.

Recurve delivered +10% net returns in 2025 despite low batting average, powered by Carvana's 100x recovery from 2022 lows. The strategy targets disruptive companies in stable industries combining physical infrastructure with proprietary technology, positioning them as AI-durable. Recent software sector weakness creates opportunities while portfolio companies leverage technology internally rather than as vulnerable end products.

Recurve declined 8.0% in March amid Iran war-driven oil supply shocks, bringing YTD performance to -18.2%. Manager made no trades, holding concentrated positions led by 47.7% Carvana allocation. Expects transitory inflation impacts rather than permanent earnings damage. Portfolio targets differentiated companies with operating leverage capable of growth despite macro headwinds.

Q1 2026 marked a major rotation from growth to value as AI infrastructure reality checks, sticky inflation, and geopolitical tensions ended the tech rally. Value stocks gained 2.4% while growth fell 12.8%. Oil spiked past $101, gold hit records, and the Fed held rates steady. Diversification across the real economy is essential again.

RiverPark Large Growth Fund focuses on high-quality large-cap companies benefiting from secular growth in AI, cloud computing, and healthcare innovation. Despite Q4 underperformance, the fund maintains conviction in concentrated positions across technology leaders and healthcare innovators, emphasizing businesses with durable competitive advantages and strong cash flow generation potential for long-term compounding returns.

RiverPark Long/Short returned 0.13% in Q4 2025, increasing net exposure to 78.91%. Strong performance from Alphabet, Eli Lilly, and Intuitive Surgical was offset by weakness in Netflix, CoreWeave, and Uber. The fund maintains concentrated exposure to AI, healthcare, and technology themes while shorting businesses with deteriorating fundamentals and unsustainable models.

Small-caps extended their leadership in 1Q26 despite geopolitical volatility, with Russell 2000 up 0.9% while large-caps declined. Royce sees compelling long-term opportunities driven by near 25-year low relative valuations, superior earnings growth forecasts, and structural tailwinds from infrastructure spending and AI adoption. Current environment offers attractive entry point for patient capital.

SaltLight delivered 30.78% returns in 2025 through their opportunity maximalist approach, positioning for the ongoing AI revolution while taking profits in hyperscalers and increasing NVIDIA exposure. They see asymmetric opportunities in compressed software valuations where AI disruption fears are already priced in, and participated in Cell C's IPO at compelling valuations.

smallvalue delivered 0.30% in volatile Q1 2026, maintaining discipline by avoiding oil despite strong performance and focusing on traditional industries. Junior Gold Miners ETF leads at 28.56% allocation. Orsero and Vidrala detracted while Mama's Creations and Olvi contributed positively. Manager acknowledged Sprouts mistake, holding too long through $24-$170 surge. Since 2020 inception, portfolio generated 17.50% annualized returns despite ongoing geopolitical and valuation challenges.

Passive investing has created market fragility by concentrating 60% of equity assets in the same large-cap technology stocks while starving capital from energy, industrials, and materials sectors. With households at record equity allocations and energy at 3% of market value amid Middle East conflict, significant value opportunities exist in overlooked companies with real earnings power trading at pessimistic valuations.

Stone Sentinel's concentrated 4-stock Asian portfolio declined 7.8% on AI disruption fears and contract uncertainty. Manager distinguishes between manageable risk and unpredictable uncertainty, focusing only on businesses with bounded outcomes. Current holdings in Japanese VDI infrastructure and Malaysian road maintenance offer strong downside protection with significant upside when market uncertainties resolve.

The Compounding Tortoise posted -18.79% in Q1 2026 but maintains focus on business fundamentals over market noise. With Diploma as a 4% position and upcoming deep-dives on serial acquirers, they emphasize valuation discipline and patience. The manager targets 12% absolute returns while highlighting that recent market gains came from multiple expansion rather than earnings growth.

TYME Advisors delivered strong annual outperformance through a quality-focused long/short strategy emphasizing defense spending, gold exposure, and capital markets. Key moves included exiting Bitcoin and rotating to US large caps, while maintaining structural themes around global rearmament and precious metals. The disciplined approach combines systematic risk management with exposure to long-term structural trends across equities and alternatives.

Voss Value underperformed in Q4 2025 due to AI-driven software sell-offs, but maintains conviction in incumbent software companies with structural moats and asset-light businesses at distressed valuations. Key positions include Flywire at 6x EBITDA despite strong growth and Choice Hotels with multiple re-rating catalysts at historic lows.

Voss Value underperformed in Q4 2025 due to software overweight amid AI hysteria, but maintains conviction that incumbents with domain expertise will successfully integrate AI capabilities. Key holdings include undervalued software companies PAR, Cellebrite, and Flywire, plus new hotel franchisor Choice Hotels at historically low valuations with significant re-rating catalysts including potential major cash unlock.