Ithaka's concentrated growth strategy lagged in Q4 2025 as investors rotated from high-growth tech despite strong fundamentals. The firm expects 2026 to be the Show Me year for AI, where productivity gains translate to revenue growth. Management maintains conviction in concentrated positions in high-quality growth companies with durable secular tailwinds and superior economics.

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.

Vulcan Value Partners improved portfolio valuations while delivering positive returns, with Small Cap trading at mid-50s price to value ratio. Manager sees parallels to late 1990s AI bubble but finds exceptional opportunities in overlooked segments. Portfolio emphasizes quality insurance and healthcare businesses like Medpace and Everest Group trading at substantial discounts to intrinsic value.

Value manager navigates late-1990s-like market dominated by AI and mega-cap stocks by improving portfolio discounts while delivering positive returns. Small Cap portfolio trades at mid-50s price-to-value ratio despite healthy economy and falling rates. Successful Medpace investment exemplifies patient capital approach. Fully invested with enhanced margins of safety across all strategies.

Hoisington argues eight disinflationary forces including weakening labor markets, restrictive monetary conditions, and AI-driven capacity expansion will persist into 2026, making inflation concerns unwarranted. With unemployment rising, real income growth slowing, and dollar liquidity declining for four consecutive years, they expect continued disinflation and declining long-term Treasury yields.

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.

Conestoga's Small Cap strategy underperformed in 2025 due to market dominance by low-quality, unprofitable stocks and minimal biotech exposure. However, quality stocks began outperforming from mid-October, and the manager expects Small Caps to outperform Large Caps given superior earnings growth prospects, valuation discounts, and pro-growth policy tailwinds.

Conestoga's SMid Cap strategy underperformed in Q4 as biotech stocks surged while the firm maintained underweight positioning. Despite challenging 2025 performance, the outlook appears bright with Small Caps projected for 32% earnings growth in 2026 versus 13% for Large Caps, trading at attractive valuations, and benefiting from supportive policy tailwinds that could drive sustained outperformance.

Distillate's international strategy delivered 41.53% returns in 2025, significantly outperforming benchmarks as international stocks rebounded. The strategy's systematic focus on quality and value provides compelling opportunities outside expensive U.S. markets. Strong fundamental metrics and disciplined rebalancing position the portfolio well for sustainable returns driven by cash flow growth rather than valuation expansion.

Conestoga Micro Cap posted 16.24% annual returns despite challenging market dynamics favoring speculative stocks. Portfolio benefited from exceptional performance in Planet Labs (388% return) and consumer staples holdings, while limited biotech exposure hindered Q4 results. Strategy maintained discipline through volatile periods, positioning for potential quality leadership rotation as Small Caps show compelling fundamentals with 32% projected 2026 earnings growth.

Ariel International Fund posted +31.48% annual returns through disciplined value investing in undervalued international franchises. Strong banking sector positioning and semiconductor equipment exposure drove performance while the manager initiated eleven new positions. With improving fundamentals, policy alignment and attractive valuations overseas, the fund is positioned to capitalize on structural growth opportunities beyond U.S. markets.

Ariel Small Cap Value posted modest Q4 gains led by Sphere Entertainment and Affiliated Managers Group, while adding positions in RLI Corp and FactSet Research. The managers enter 2026 with measured caution given market volatility and large-cap concentration, maintaining their disciplined long-term approach focused on robust fundamentals and strong management teams.

Ariel Global Fund posted 23.30% annual returns through disciplined international value investing, capitalizing on semiconductor AI demand, European banking consolidation, and energy transition opportunities. The fund initiated sixteen new positions while maintaining focus on undervalued franchises with improving fundamentals. Strong positioning in SK Hynix, European banks, and renewable infrastructure reflects conviction in structural growth themes outside U.S. mega-caps.

Ariel Fund posted solid Q4 returns driven by entertainment and oil services holdings, finishing 2025 with strong 14.15% annual performance that outpaced small-cap value benchmarks. The managers maintain cautious optimism for 2026, emphasizing their disciplined value approach focused on robust balance sheets and durable fundamentals amid elevated market volatility and large-cap concentration concerns.

Davenport Core Leaders returned 10.71% in 2025, lagging the S&P 500's 17.88% due to disciplined diversification in an AI-dominated market. The Fund maintained focus on quality businesses with durable advantages while avoiding speculative momentum plays. Management believes their conservative approach will pay off as market leadership eventually broadens beyond expensive AI stocks.

Davenport maintained disciplined value investing in Q4 2025 despite underperforming AI-driven markets. Their focus on quality dividend-growing companies with strong buyback programs positions them for potential outperformance when market leadership rotates. With reduced policy uncertainty expected in 2026 and stretched valuations in momentum stocks, their conservative approach targeting overlooked opportunities could benefit from broader market participation.

Troy Global Equity Strategy underperformed in 2025 despite strong portfolio company fundamentals, creating opportunity. AI concerns pressured data and software holdings while benefiting unowned semiconductor stocks. The Strategy now trades at historic discount on free cash flow yield with superior financial metrics, well-positioned as other market areas appear stretched.

Multi-asset fund delivered 3.5% quarterly return through diversified positioning across commodities, thematics, and geographies. AI focus shifted from growth to monetisation following Oracle's warning. Central bank policy divergence and US-China trade truce shaped markets. Portfolio benefited from gold, copper, and healthcare exposure while maintaining defensive positioning ahead of 2026 uncertainties.

T. Bailey Multi-Asset Growth Fund gained 4.01% in Q4 2025, driven by strong commodity performance with gold up 12.12% and copper advancing 16.57%. The fund increased emerging market exposure while AI themes faced monetisation scrutiny. Trade tensions persist despite US-China truce, and central bank policy divergence creates uneven conditions. Managers emphasise valuation discipline over forecasting.

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.

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.

Steyn Capital delivered 18.26% net returns in 2025, led by precious metals exposure during gold and platinum rallies. The manager sees abundant opportunities in undervalued South African equities amid supportive commodity markets and potential emerging market rotation. With 66% net exposure and disciplined short book protection, the fund is positioned for continued value creation in an attractive valuation environment.

Parnassus Value Equity outperformed in Q4 and 2025, driven by AI-benefiting holdings across Technology and Industrials. The manager maintains quality-focused positioning with overweights in Financials and Health Care while taking profits in long-term IT winners. Expects continued value outperformance given elevated growth valuations and broadening AI adoption across industries beyond technology.

Minot Light delivered solid 2025 returns while navigating unprecedented small-cap volatility. The managers embrace market inefficiencies created by momentum-driven trading, believing fundamental analysis provides significant alpha opportunities. They strengthened their process around downside protection and position sizing, positioning to capitalize on violent stock dislocations while building larger positions in de-risking growth stories.

Mairs & Power Balanced Fund underperformed in 2025 due to insufficient AI exposure and company-specific issues at Fiserv and UnitedHealth. Managers see AI entering higher-risk phase but expect lower rates to support economy. Strategy remains focused on durable competitive advantages and long-term technology beneficiaries while maintaining domestic preference amid geopolitical shifts.

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.

Mairs & Power Growth Fund underperformed in 2025 due to stock selection issues and avoiding overvalued AI stocks. Added Zoetis and Intuitive Surgical as AI beneficiaries with reasonable valuations. Believes AI cycle entering higher risk phase but maintains disciplined approach focused on durable competitive advantages and long-term value creation over short-term benchmark performance.

Ninepoint sees 2026 as opportunity-rich despite central bank uncertainty, with compelling themes including natural gas demand surge from AI-driven electrification, gold's continued strategic asset momentum above $4,000/oz, crypto's institutional maturation through tokenization, and Canadian energy producers positioned for outperformance. High-quality fixed income provides portfolio anchoring while structural electrification trends support global infrastructure investments.

Mayar underperformed in 2025 due to index concentration in US tech, but maintains disciplined value approach. Portfolio shows clear differentiation with European focus and defensive positioning. Manager identifies AI bubble risks similar to late 90s, expects inevitable correction to favor quality holdings. Defensive cash position and patient capital deployment strategy positions fund for eventual market normalization.

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.

Small caps delivered first earnings growth in three years but the Fund underperformed due to healthcare stock selection challenges. With small caps trading at significant discounts while showing 13% earnings growth and benefiting from Fed rate cuts, managers see attractive long-term opportunity despite AI cycle entering higher-risk phase with excessive capital deployment.

Magellan delivered 1.4% in Q4 amid market rotation from AI mega-caps. Portfolio remains defensively positioned despite supportive US macro tailwinds from fiscal and monetary policy. Quality focus on companies like Alphabet, Amazon, and Nestlé provides resilience against elevated valuations and multiple macro risks heading into 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.

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.

Vulcan improved price-to-value ratios across all strategies while delivering positive returns in 2025. Drawing parallels to late 1990s, manager sees current AI-driven market as overvalued but maintains discipline focusing on quality companies at deep discounts. Small Cap portfolio trades at mid-50s price-to-value ratio, positioning for long-term outperformance as unloved segment recovers.

Conestoga's Mid Cap strategy underperformed in Q4 and 2025 due to market preference for low-quality, AI-related, and defense stocks over traditional quality names. Technology and Industrial holdings faced headwinds while Health Care and Utilities provided some offset. The manager maintains conviction in quality fundamentals despite near-term market dynamics favoring speculation.

Parnassus Mid Cap Growth outperformed in Q4 despite negative returns, driven by AI-exposed semiconductor holdings. The fund diversified away from concentrated AI exposure by adding industrial companies positioned for economic broadening. Managers remain optimistic about 2026, believing mid-caps could lead if growth expands beyond AI-dominated large companies to benefit their innovative, industry-leading portfolio companies.

Insufficient data available to assess fund performance, strategy, or outlook.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.