SGA's Emerging Markets Growth portfolio returned 22.8% net in 2025 but underperformed cyclical-driven benchmarks. The AI boom favored momentum stocks while quality growth faced headwinds. Portfolio trades at steepest ever discount to MSCI EM as quality factor hits historically depressed levels. SGA sees meaningful upside potential as valuations normalize for businesses with pricing power and recurring revenues.

Baron Partners Fund returned 19.07% in Q4 2025, driven by concentrated positions in disruptive growth companies including SpaceX and X.AI Holdings which more than doubled. Despite some holdings facing AI disruption concerns and reinvestment headwinds, managers express increasing confidence in depressed investments contributing to future performance as earnings materialize and sentiment improves.

Fidelity Dividend Growth Fund outperformed with 5.09% Q4 returns driven by AI beneficiaries Alphabet and memory chip leader SK Hynix. Manager Zach Turner maintains conviction in generative AI's transformative impact while positioning for commercial aviation recovery through Boeing overweight. Energy transition plays like GE Vernova benefit from electrification trends and AI power demands.

Bailard's international strategy delivered 34.9% annual returns, outpacing U.S. markets by the widest margin in 30 years. Broad-based gains across AI infrastructure, financials, and precious metals drove performance. Despite geopolitical risks around Taiwan and U.S. policy uncertainty, the manager expects multi-year international equity leadership supported by diverse themes and attractive valuations.

Bailard's Small Cap Value Strategy posted a 3.4% Q4 return, slightly outperforming its benchmark despite full-year underperformance. Value characteristics regained favor after October's junk stock rally faded. The strategy's behavioral finance-driven approach and AI-enhanced models position it well for 2026, with economic catalysts including tax cuts and Fed easing supporting small cap value prospects.

Third Point capitalizes on AI-driven market rotation from software to semiconductors and capital-intensive industrials. Core holdings include discounted Korean holding company SK Square and dominant mattress consolidator Somnigroup. Increasing healthcare exposure while expanding credit opportunities from private equity monetization struggles. Despite high market multiples, positioned for friendly macro environment with GDP acceleration and disinflation supporting corporate fundamentals.

Stewart Investors transitioned to FSSA management while maintaining quality-focused approach in Asian and emerging markets. Adding Chinese holdings like Tencent at attractive valuations, reducing expensive Indian cyclicals. Semiconductor holdings Samsung and TSMC drove performance on AI demand. Conservative on AI hype, focused on sustainable competitive advantages. Optimistic outlook with double-digit earnings growth expected and attractive portfolio valuations.

Baron Opportunity Fund outperformed in Q4 2025 with 4.63% returns, led by SpaceX and AI investments. NVIDIA delivered 10x returns while Broadcom achieved 2.5x gains from explosive growth. The Fund maintains high conviction in secular trends including AI, space technology, and cloud computing, adding positions in public safety, athletic footwear, and medical diagnostics while exiting Oracle and Trade Desk.

Polen 5Perspectives Small Growth underperformed in Q4 despite strong full-year returns of 25.1% net. AI infrastructure themes drove top contributors Bloom Energy and Argan, while biotech exposure was doubled on improving fundamentals. Manager maintains conviction in innovation-driven small cap opportunities over tactical macro positioning, emphasizing structural tailwinds from technological disruption.

Rowan Street delivered +11.1% in 2025, underperforming the S&P 500 but maintaining exceptional three-year returns of +252% versus +78% for the index. The concentrated strategy focuses on long-term compounding through high-quality businesses like Tesla, Meta, and Shopify. Position sizing adjusts organically based on execution, allowing winners to compound while maintaining discipline through inevitable volatility periods.

Baron Small Cap Fund underperformed in 2025 as Quality Growth stocks fell out of favor while unprofitable concept stocks rallied. AI infrastructure and defense holdings drove positive contributions. The manager maintains conviction in high-quality portfolio companies and expects 2026 to provide a better environment for small-cap outperformance driven by earnings growth and multiple expansion.

ClearBridge All Cap Growth underperformed in Q4 2025 due to underweights in outperforming Alphabet and Apple, plus Netflix weakness from acquisition uncertainty. The team added Airbus, Linde, and Hilton while maintaining balanced exposure to AI opportunities and defensive characteristics. Markets show resilience but increased volatility as momentum areas cooled and dispersion widened.

Northern's emerging markets fund outperformed in Q4 2025 through strong South Korean semiconductor stock selection and underweighting China. Multiple sub-adviser approach delivered 34.14% annual returns versus 33.57% benchmark. Rising commodities helped Latin American and African positions while Taiwan underweight hurt performance.

Northern International Equity Fund outperformed in Q4 by focusing on attractively valued, high quality international stocks. Value and quality factors drove outperformance while AI enthusiasm cooled. Strong stock selection in Financials and Materials offset weakness in Consumer sectors. Manager maintains positive outlook for high-quality, inexpensive securities given current valuations.

Northern Large Cap Value Fund outperformed its benchmark in Q4 2025, benefiting from strong value stock performance and quality tilts. The fund focuses on attractively valued companies with strong fundamentals. Healthcare led sector performance while defensive sectors lagged. Management remains optimistic about high-quality value opportunities going forward.

Northern Small Cap Value Fund underperformed its benchmark in Q4 2025, returning 2.62% versus 3.26% for the Russell 2000 Value Index. Mixed stock selection and underweight positioning in volatile, low-profitability names created headwinds. The fund maintains its disciplined value approach, focusing on reasonably priced, profitable small-cap companies while avoiding lower quality names.

Black Bear Value Fund underperformed in 2025 but positions for strong recovery with holdings nearing capital cycle inflection points. Portfolio concentrates on undervalued housing, energy, and coal companies while shorting AI speculation and credit excess. Manager expects 50-100% upside potential as investment cycles conclude and shorts face valuation reality.

Global markets posted modest Q4 gains driven by solid earnings and Fed rate cuts, with AI stocks delivering strong results despite valuation concerns. Health care led sector performance while emerging markets advanced despite Chinese weakness. Central banks remain accommodative with Fed likely to cut further in 2026, supporting continued market resilience amid mixed economic signals.

Canada's tariff-induced policy awakening is driving massive defense and infrastructure spending increases, creating opportunities for quality industrials like Toromont Industries. However, extreme US market valuations at 30x earnings, record leverage, and the unsustainable AI capital boom present significant risks. The global shift toward National Capitalism offers selective opportunities while threatening market-based economic principles.

Small-cap growth positioned for favorable 2026 environment driven by continued AI investment cycle, aerospace aftermarket strength transitioning to OEM recovery, healthcare sector normalization with attractive valuations, and emerging onshoring trends. Multiple cyclical industries may inflect positively after prolonged downturns while fiscal stimulus and monetary easing provide supportive backdrop for equity markets.

Calamos Dynamic Convertible fund delivered solid Q4 performance with 11.24% distribution rate, leveraging record convertible issuance environment. Portfolio emphasizes technology and industrials with 33% leverage enhancing returns. Outlook remains constructive on supportive growth fundamentals and Fed accommodation, though risks include inflation uncertainty and elevated valuations requiring active security selection.

CrossingBridge delivered top-tier risk-adjusted returns while navigating the seventh most disruptive period in 200 years. Fed cuts created bull steepener driving alternative demand as money markets fell to 3.5%. Manager reduces leveraged loans, increases Nordic exposure, and targets DIP financings. Direct lending stress mounting with rising defaults. Maintains patient, defensive approach prioritizing downside protection in expensive markets.

Yacktman Fund delivered strong 2025 performance through value-focused investing in undervalued companies with solid fundamentals. Korean holdings Samsung and Hyundai Mobis drove returns, benefiting from AI/EV trends and governance reforms. Media positions gained from industry consolidation activity. The team sees significant portfolio value unlocks ahead while maintaining disciplined risk-adjusted approach.

Aristotle International delivered 5.50% quarterly returns, outperforming benchmarks through strong security selection in banking and automation. Erste Group and FANUC drove performance while Sony faced one-time charges. The manager added gaming leader Aristocrat Leisure while maintaining disciplined focus on quality businesses with durable competitive advantages despite macro uncertainties.

Baron Asset Fund outperformed significantly in Q4 2025, driven by private investments SpaceX and X.AI Holdings which benefited from AI and space technology trends. The fund maintains concentrated positions in quality growth companies with competitive advantages. Management expects continued market appreciation for high-quality businesses amid favorable economic conditions and potential SpaceX IPO catalyst in 2026.

Aristotle Small Cap Fund sees compelling long-term value in small caps trading at multi-decade low valuations versus large caps. Strong semiconductor and healthcare positions drove Q4 performance while adding regional banks on DOGE concerns. Potential catalysts include deregulation, lower taxes, increased M&A, and manufacturing reshoring, though inflation and geopolitical risks persist.

Aristotle/Saul Global Equity Fund matched benchmark performance in Q4 2025 through disciplined stock selection. Strong performance from Erste Group Bank and FANUC offset weakness in Uber and Sony. The fund added quality names Itochu and Lowe's while exiting FMC and Nidec. Management maintains focus on individual business fundamentals amid macro uncertainties including AI sustainability and China concerns.

Brookfield delivered record Q4 2025 earnings and expects one of its strongest years ahead in 2026. The firm is capitalizing on structural mega-trends including AI infrastructure buildout, energy transition, and deglobalization through its largest-ever flagship fund launches. Their diversified, operationally-focused platform is well-positioned for the next chapter of private markets growth.

Yacktman's value-focused fund delivered strong 2025 returns driven by Samsung's AI and memory recovery, Korean market reforms, and media sector re-rating. The manager's disciplined approach of buying quality companies below intrinsic value while focusing on normalized free cash flows positions the portfolio well for continued outperformance as structural catalysts unfold.

Aristotle Small/Mid Cap Fund outperformed in Q4 2025 driven by AI-related demand and grid modernization themes. The fund maintains optimistic outlook on small/mid caps citing compelling valuations and multiple tailwinds including deregulation, tax cuts, M&A recovery, and reshoring. Portfolio overweights technology and materials while underweighting consumer discretionary and financials after harvesting gains.

Global real estate fundamentals are improving with low supply and high construction costs conveying pricing power to landlords. Interest rate stabilization removes a major REIT headwind. The fund favors property types with supply-demand imbalances including data centers, healthcare, and industrial/logistics while avoiding weakening areas like self-storage and office.

Cooper Investors underperformed in 2025 due to concentrated market gains but maintains high conviction in refreshed portfolio. Strong performance from sports content asset TKO and semiconductor leader TSMC offset weakness in insurance broker RYAN and Japanese software company freee. Despite elevated market valuations, manager expects portfolio holdings to deliver superior risk-adjusted returns over medium-term investment horizons.

Emeth Value Capital underperformed significantly in 2025 but maintains focus on businesses with durable competitive advantages. Superior Plus represents the investment philosophy through its dominant propane distribution platform with sticky customer relationships and ongoing operational transformation targeting $70 million EBITDA improvement. Portfolio positioned in physical activity businesses protected from AI displacement while benefiting from infrastructure growth.

Azvalor delivered strong 2025 returns through concentrated value investing, successfully rotating from gold miners into quality businesses trading at 50% market discounts. With 54-71% estimated upside across funds and minimal overlap to expensive US indices, they maintain disciplined capital allocation while expanding their experienced team to identify new opportunities in overlooked market segments.

Azvalor delivered strong 2025 returns through concentrated value investing in quality businesses trading at 50% market discounts. Successfully exited gold mining positions at substantial gains while rotating into new opportunities. With EUR 3.6 billion in assets and expanded analytical capabilities, the firm maintains significant upside potential across portfolios while emphasizing equity necessity amid inflationary policy expectations.

Robotti targets cyclical businesses emerging from prolonged downturns where consolidation has removed excess capacity and improved capital discipline. Focus areas include offshore energy services like Tidewater and homebuilders, where structural changes have shifted industries from oversupply to scarcity. Patient capital approach capitalizes on gap between improving fundamentals and market perception in abandoned sectors.

Praetorian repositioned away from struggling real economy stocks toward bubble beneficiaries after recognizing policymakers prioritize asset values over growth. The fund now targets Emerging Markets for Dollar weakness, precious metals for inflation, refiners for energy recovery, market intermediaries for financialization trends, and Florida real estate for wealthy migration patterns.

Fidelity Growth Strategies Fund outperformed its mid-cap growth benchmark in Q4 despite sector headwinds, driven by AI infrastructure beneficiaries like Coherent and aerospace holdings. The manager maintains heavy industrials overweight focused on AI enablers while navigating policy uncertainty and inflation persistence. Outlook remains constructive given expected rate cuts and continued corporate AI spending.

Fidelity Freedom 2055 delivered strong 2025 returns of 23.73% through active asset allocation favoring non-U.S. equities. The fund maintains cautious positioning given elevated U.S. valuations while implementing strategic allocation updates. Key focus areas include diversification across geographies, selective fixed income positioning, and commodity exposure to hedge inflation risks and macro uncertainties.

Bond fund managers reduced corporate exposure due to tight spreads while adding securitized credit positions for better risk-return. Maintained agency MBS overweights and neutral duration with yield curve steepening bias. Expect Fed caution and increased volatility ahead but see opportunity in elevated longer-term yields supporting fixed-income demand.

TCW Core Fixed Income delivered solid Q4 performance driven by agency MBS overweight, which benefited from reduced rate volatility. Fund maintains defensive positioning with corporate credit underweight given tight spreads and minimal downside protection. Despite fading policy headwinds, labor market weakness suggests bumpier path ahead than markets anticipate, supporting emphasis on liquidity and quality positioning.

Sound Shore delivered strong Q4 performance through diversified value picks across healthcare, defense, and manufacturing rather than tech concentration. Portfolio trades at meaningful discount to market despite strong fundamentals. Healthcare benefited from regulatory clarity while defense contractor HII gained from Navy expansion. Managers remain disciplined on valuations, viewing current environment as opportunity for patient value investors.

John Hancock Balanced Fund delivered strong 16% annual returns through superior security selection, particularly in communication services and healthcare. Key contributors included Eli Lilly's GLP-1 growth and Freeport-McMoRan's commodity exposure. Managers actively repositioned portfolios while maintaining balanced allocation, expecting continued earnings strength but anticipating increased volatility from geopolitical uncertainty and elevated valuations.

Baird Small/Mid Cap Growth outperformed in Q4 2025 but significantly lagged for the year. Healthcare led by Exact Sciences acquisition and semiconductor strength drove quarterly gains. The team made strategic position changes while acknowledging recent underperformance. Management remains committed to high-quality growth philosophy and sees improving portfolio response when fundamentals are rewarded over momentum factors.

Steyn Capital delivered 18.26% net returns in 2025, powered by precious metals rally and Chinese technology holdings. Fund maintains disciplined value approach with 66% net exposure and active short hedging. Sees continued opportunities in undervalued South African equities while positioning defensively against US market concentration risks and elevated global valuations.

Oaktree sees a new era of market dispersion where index averages mask sharp winner-loser bifurcation. Credit markets offer income opportunities in performing assets while creating dislocation opportunities in stressed names. AI concentration dominates equity returns while K-shaped economy shows consumer divergence. The firm advocates nuanced management combining prudent risk control with opportunistic positioning.

Fund delivered 11.7% in two months through concentrated value positions in gold miners, semiconductors, and special situations. Portfolio maintains 21% gold miner allocation despite price appreciation, citing attractive earnings multiples. New cannabis investment Auxly trades at 4.5x P/E as profitable market leader. Expects higher tariffs but dovish Fed policy ahead.

Global markets experienced a decisive leadership shift in 2025, with non-US equities significantly outperforming amid a structural USD downcycle. Precious metals delivered exceptional returns with gold up 64% and silver up 147%. NCM's Global Equity Selection Fund captured these dynamics through active allocation, delivering +24.3% returns while positioning for continued USD weakness and precious metals strength.

Gator Financial Partners posted 4.14% in Q4 and 31.94% for 2025, outperforming benchmarks through focused small and mid-cap financials investing. Key wins included Anywhere Real Estate's 329% gain from Compass acquisition and continued Robinhood success. New TFS Financial position targets leveraged banking recovery exposure through mutual holding company structure as interest rate environment normalizes and margins recover.

European value fund underperformed in 2025 despite 11.90% gains, extending four-year relative weakness. Manager remains optimistic, citing extensive share buybacks across portfolio companies at attractive valuations as key value driver. Believes market overreacting to AI concerns in platform businesses. Corporate restructuring catalysts at major holdings should unlock value over time as current low valuations create rebound potential.