Aikya's emerging markets fund underperformed in December due to minimal semiconductor exposure amid AI enthusiasm, while Brazilian political uncertainty hurt regional holdings. The fund maintains quality and valuation discipline despite missing the tech rally, with strong individual company performance from Capitec, EPAM, and FEMSA offsetting broader headwinds.

Focus Capital's 85.8% annual return was driven by Kingsgate's gold mining success and Silicon Motion's semiconductor market share gains. Despite extraordinary performance, the manager cautions against expecting similar results while maintaining concentrated value approach. Plans include trimming commodity-exposed Kingsgate and adding to undervalued Burford Capital and Valeura Energy positions.

8th Wonder's inaugural year featured a Warner Bros. Discovery home run offset by software sell-offs in core holdings Constellation and Topicus. The concentrated portfolio targets exceptional CEOs running antifragile businesses with secular growth. Recent volatility in mid-caps and AI disruption fears create buying opportunities in proven compounders trading at generational discounts.

Maran Capital's concentrated value approach delivered +5.4% in 2025 through asymmetric opportunities in underleveraged, inexpensive companies. Portfolio highlights include Clarus seeking asset sales, Turning Point Brands riding nicotine pouch growth, and Correios de Portugal compounding at 21% CAGR. Manager maintains optimistic outlook on current positioning with favorable risk/reward dynamics across top holdings.

Lord Abbett High Yield Fund outperformed in Q4 through superior credit selection, shifting toward lower-quality CCCs for better relative value while reducing expensive BBs. The strategy emphasizes elevated carry in tight spread environment. Manager expects continued strong performance in 2026 supported by Fed easing and resilient macro conditions despite near all-time tight credit spreads.

The fund delivered strong 2025 returns of 32% despite Q4 China weakness. AI-driven semiconductor rally in Taiwan and South Korea drove performance, while copper benefited from electrification trends. Managers remain constructive on emerging markets supported by weaker dollar, lower rates, and AI/electrification capex themes, though mindful of geopolitical risks and potential AI bubble.

High yield delivered solid quarterly returns despite market volatility from private credit defaults and Fed caution. Fund's credit quality positioning helped performance while tight spreads present headwinds. Constructive outlook supported by solid fundamentals, expected rate cuts, and technical support from income-seeking investors. High yield remains attractive versus other leveraged credit alternatives.

Rozendal's Hedge Fund posted 21.7% returns but lagged the benchmark's 42.4% due to limited precious metals exposure. The South African market was driven by a tripling in precious metals prices, which the fund largely missed through modest positioning. Strong individual stock selection in Valterra Platinum, Tiger Brands, and Curro offset detractors, while the firm maintains conviction in their long-term value approach.

The fund underperformed despite gains, with biotech and beauty detractors offset by medical device and retail winners. New positions target infrastructure, reshoring, and technology adoption themes. Despite government shutdown headwinds, the manager remains optimistic on small-cap prospects driven by secular trends in infrastructure investment, technological innovation, and supply chain reshoring.

abrdn's international small cap fund delivered strong 17% annual returns despite Q4 underperformance. The quality-focused strategy targets companies with strong balance sheets and earnings visibility, benefiting from AI demand and defense spending. New positions in Chinese lens manufacturer Shanghai Conant and marine services provider HD Hyundai Marine Solution reflect conviction in sector-specific growth opportunities heading into 2026.

Rozendal Global Fund delivered 42.8% returns in 2025, beating benchmark by 20% through European and Emerging Market focus while avoiding overvalued US equities. Materials sector surged 32% on precious metals boom, with gold reaching extreme valuations. Fund's behavioral edge in holding uncomfortable positions validated by academic research, maintaining discipline against current market manias for superior long-term outcomes.

Invenomic Fund's long/short equity strategy delivered 4.58% returns in 2025 despite significant factor headwinds from value underperformance and small-cap weakness. The fund maintains disciplined value-oriented positioning with small-cap bias, expecting mean reversion in momentum and value factors. Management sees tremendous opportunity ahead given stretched market conditions and record margin debt levels.

Value-focused fund outperformed in Q4 by targeting undervalued quality businesses outside expensive market leaders. Portfolio trades at 13x forward earnings versus market's 26x. Strong performance from software, banking, and healthcare positions. Manager increased software exposure through Workday and Salesforce purchases. Optimistic on positioning despite elevated market valuations concentrated in Magnificent 7 stocks.

Hotchkis & Wiley Small Cap Value Fund underperformed in 2025 due to limited exposure to unprofitable, speculative stocks that dominated returns. The managers see uncomfortable parallels to the dot-com bubble and expect a meaningful correction as fundamentals reassert themselves, positioning the fund to benefit from market normalization.

Hotchkis & Wiley's mid-cap value strategy delivered 7.87% in 2025 while maintaining a contrarian stance against elevated market valuations. The fund emphasizes undervalued energy, financial, and auto supplier positions trading at attractive multiples with strong cash flows. Despite near-term headwinds in select holdings, managers remain optimistic about portfolio positioning relative to an expensive broader market.

Ironvine owns quality businesses with durable competitive advantages that grew earnings 12-16% in 2025. The portfolio spans technology infrastructure leaders like Amazon and Microsoft, aerospace aftermarket champion HEICO, AI-beneficiary Amphenol, payment networks Visa and Mastercard, and semiconductor suppliers. Management expects continued mid-teens earnings growth and double-digit returns despite potential multiple compression, driven by strong business fundamentals and reinvestment opportunities.

Hotchkis & Wiley Global Value Fund exploits valuation disparities in concentrated markets, trading at 13x forward earnings versus 23x for MSCI World. The fund increased software exposure viewing AI as tailwind, reduced financials after strong performance, and maintains healthcare overweight. Strong contributors included Alphabet and Warner Bros. Discovery while F5 faced cybersecurity headwinds.

Weitz Partners III underperformed in 2025 with 3.17% returns versus 17.21% for the benchmark. AI Winners like Alphabet drove gains while deep value positions and life sciences holdings detracted. The managers sold struggling CarMax but held Liberty Broadband, betting on Charter's durable connectivity franchise and improving free cash flow as network investments moderate.

Pzena's international value strategy outperformed in Q4 2025, driven by cyclical strength in materials and financials. The team added Kubota, Publicis, Accenture, and Vale at attractive valuations while trimming winners. Despite AI disruption concerns, the manager sees opportunities in companies trading below fundamental value amid ongoing market volatility.

Ashva Capital underperformed in 2025 by avoiding overvalued mega-caps, instead focusing on quality businesses like Micron, AMD, and Disney at reasonable prices. The manager emphasizes that compounding requires survival through cycles, not perfect timing. Using Buffett's playbook of valuation discipline and patient capital, Ashva targets long-term wealth creation over short-term performance chasing.

Pzena's Focused Value strategy underperformed in Q4 as momentum stocks continued their leadership. Key detractors included FMC, Baxter, and Skyworks on disappointing results, while Dollar General and Citigroup contributed positively. The team initiated Knight-Swift during the freight downturn and trimmed outperformers. Management sees attractive valuation dispersion creating opportunities for patient value investors.

Small-cap value manager delivered 9.2% returns in 2025 through disciplined stock selection and special situations. Strong performance from aerospace recovery at Butler National, successful capital structure arbitrage, and profitable short position. New specialty chemicals turnaround Ascent Industries offers significant operating leverage. Maintains 16% cash and selective AI exposure while focusing on long-term outperformance.

Pzena's global small-cap value strategy underperformed in Q4 despite positive absolute returns, with consumer discretionary and industrials detracting while financials outperformed. The team initiated positions in Winnebago and Teleperformance at attractive valuations, while trimming appreciated positions. Small caps remain deeply undervalued relative to large caps, creating compelling opportunities for disciplined value investors.

Weitz Large Cap significantly underperformed in 2025 with -0.23% returns versus 17.51% for the index due to poor stock selection. Healthcare strength helped Q4 performance while AI infrastructure cooled. Management implemented process improvements and increased concentration to 24 holdings. Portfolio now positioned in improving businesses at attractive relative valuations with building confidence for 2026.

Weitz Multi Cap significantly underperformed in 2025 with 3.22% returns versus 17.21% benchmark. Alphabet's Gemini AI drove outperformance while broadband competition pressured Charter and Liberty Broadband. Managers exited CarMax amid operational challenges but maintained Charter exposure through Liberty Broadband, believing setup improves as capital investment cycle peaks and free cash flow generation recovers.

Curreen Capital's ugly duckling strategy delivered 30.97% in 2025, led by three spinoff winners: Fortrea, Siemens Energy, and GetBusy. The fund targets quality businesses at Crazy Cheap valuations with 5:1 upside-to-downside ratios. Manager Ryther continues focusing on spinoffs and extremely undervalued companies in the $300M-$5B market cap range, capitalizing on increased availability of quality businesses at deep discounts.

FPA Crescent delivered strong 2025 returns through value-aware investing, focusing on quality companies at attractive valuations. The fund is actively deploying capital into small to mid-cap global securities, believing these offer asymmetric opportunities for patient investors. Despite elevated market multiples suggesting potential volatility, the managers maintain their disciplined bottom-up approach and long-term investment horizon.

Markets delivered strong 2025 returns driven by AI concentration and Fed easing, but face elevated valuations entering 2026. International markets outperformed on dollar weakness. Policy support continues through rate cuts and fiscal stimulus, yet late-cycle risks emerge with slowing labor markets and historic concentration levels creating vulnerability to surprises despite broadening earnings expectations.

African Lions Fund delivered 67% returns in 2025 while maintaining attractive valuations with 6.1x forward PE and 8% dividend yield. Despite liquidity challenges in frontier African markets, structural demographic tailwinds and improving market conditions support continued outperformance. Portfolio remains concentrated in high-quality sub-Saharan businesses with significant upside potential.

Cannabis specialist fund delivered 200% returns since 2023 versus 32% decline in sector index by focusing on cost-advantaged operators. Trump's rescheduling directive marks historic federal shift expected in first half 2026. Industry distress creates acquisition opportunities for efficient operators. Manager views reform as beginning of multi-year opportunity with strong growth runway ahead.

TAMIM's Australian small cap fund delivered 22.97% returns in 2025 despite technology sector headwinds from rising rate expectations. Multiple portfolio companies executed strategic acquisitions and upgrades. Manager expects continued small cap outperformance driven by superior earnings growth prospects and takeover activity, with portfolio well-positioned for 2026 despite expected volatility.

Manager rebuilds confidence through selective stock picking while navigating extreme market bifurcation. Precious metals show bubble conditions reminiscent of 1970s, AI stocks corrected 50% before recovering. Closed unsuccessful AI shorts, added healthcare immunity plays TEVA/REGN, and new fintech position Figure Technologies bridging blockchain and loan securitization. Maintains disciplined approach avoiding macro timing.

GreenWood delivered 52.5% returns in 2025 through collaborative ownership and governance activism across a value-oriented global portfolio. The firm works directly with management teams to unlock catalysts and improve business quality, with FDA approvals, mine development progress, and turnaround execution driving outperformance. Strong pipeline of transformation opportunities positions for continued alpha generation.

Grantham identifies an extreme AI bubble in U.S. stocks, with valuations at dangerous levels comparable to history's greatest technology manias. Despite AI's transformational potential, massive overinvestment of $300 billion annually by tech giants and extreme valuations signal inevitable collapse. The bubble shows classic signs but hasn't yet peaked, though severe losses await most investors when sentiment shifts.

Fidelity Freedom 2045 Fund delivered 23.77% annual returns driven by overweight non-U.S. equities positioning. The fund maintains preference for international assets over elevated U.S. valuations while emphasizing diversification to hedge macro risks. Active positioning includes added fixed-income and commodities exposure to address inflation concerns and geopolitical uncertainties.

Kennedy Capital's small-cap strategy delivered solid Q4 performance with strong technology sector selection, particularly in AI-exposed semiconductors. Eight portfolio acquisitions validated their value identification approach. The managers increased cyclical exposure amid a stable macro backdrop featuring supportive rate cuts and resilient labor markets, maintaining focus on underappreciated catalysts and fundamental improvement opportunities.

Event-driven long/short fund underperformed in 2025 despite strong short book alpha generation. Key aerospace and infrastructure holdings FTAI Aviation and Montana Aerospace offer significant upside from supply chain dynamics and data center power opportunities. Manager expects bifurcated 2026 with early-year risk-taking opportunity followed by caution as inflation reasserts, maintaining selective positioning for momentum unwind.

Small cap long/short fund delivered +9.9% in 2025 through disciplined stock selection in structurally inefficient markets. Strong contributors from AI-beneficiary SiTime and aerospace materials provider ATI. Outlook remains constructive with monetary and fiscal tailwinds supporting small cap outperformance in 2026. Strategy focuses on mispriced opportunities with recurring revenue models and competitive moats while managing risks through balanced long/short positioning.

Grandeur Peak's quality-focused strategy faced continued headwinds as markets rewarded speculation over fundamentals, with low-quality funds outperforming by 24.2%. Despite challenging conditions, the firm delivered strong 16.4% earnings growth and projects 21.4% for 2026. The team reduced portfolio concentration while maintaining quality discipline, positioning for potential mean reversion across value-growth and quality dimensions.

Grandeur Peak faced headwinds in 2025 as markets rewarded speculation over quality, yet delivered strong 16.4% portfolio earnings growth. Foreign markets significantly outperformed U.S., with dramatic value outperformance masking true opportunity in growth. The firm reduced portfolio concentration and expects 21.4% earnings growth in 2026, positioning for potential mean reversion favoring quality strategies.

Grandeur Peak's Global Contrarian returned 20.03% in 2025 despite headwinds from markets rewarding speculation over quality. Strong 16.4% portfolio earnings growth with 21.4% expected in 2026 supports their thesis. Extreme dispersion between quality factors and geographies creates opportunity for mean reversion favoring their high-quality, reasonable valuation approach.

Giverny delivered 12.6% returns in 2025 but lagged the S&P 500 due to mega-cap tech dominance. The portfolio's 45% small-cap allocation and focus on niche market leaders faced headwinds from AI infrastructure euphoria. Manager added HVAC and water treatment companies while exiting underperformers, maintaining conviction that quality businesses will ultimately outperform despite current momentum favoring tech giants.

Diamond Hill's Mid Cap Strategy outperformed in Q4 with strong industrials and materials selection, led by AI beneficiaries Ciena and WESCO's data center growth. Portfolio positioning turned more defensive amid elevated valuations, favoring lower-debt, less cyclical names. Healthcare and industrials remain key opportunity areas while managers maintain caution about market uncertainty and AI valuation concerns.

Diamond Hill Small Cap outperformed in Q4 with a 4.88% net return versus 2.19% for Russell 2000, driven by strong industrials and consumer discretionary selection. The strategy focuses on resilient businesses in neglected areas like industrial infrastructure, defense modernization, and critical materials. New real estate positions reflect expanding opportunity set amid continued market volatility.

Diamond Hill Large Cap Fund underperformed in Q4 due to limited AI exposure, returning 1.41% versus 3.81% for the Russell 1000 Value Index. Managers remain cautious of AI exuberance, preferring high-quality, cash-generative defensive businesses like Colgate, Aon, and Berkshire Hathaway. New positions initiated in undervalued quality names while selling holdings that reached fair value.

Polen International Growth underperformed significantly in 2025 as markets favored cyclical businesses over quality growth companies. Despite flat returns versus strong foreign market performance, underlying business fundamentals remain solid. The portfolio added Nintendo ahead of Switch 2 launch and maintains focus on durable competitive advantages. Management sees attractive opportunities outside the US and expects quality companies to ultimately outperform.

WestEnd rotated from mega-cap Technology concentration toward a more balanced portfolio spanning AI infrastructure, industrial modernization, defense spending, and healthcare. While maintaining AI exposure through data center and infrastructure plays, the firm added positions in natural gas compression, GLP-1 therapeutics, and strategic metals. The constructive 2026 outlook reflects healthy fundamentals and supportive policy backdrop.

Diamond Hill's International Strategy delivered 28.41% net returns in 2025 despite Q4 underperformance. Strong semiconductor exposure benefited from AI demand, while European banks and defense companies performed well. The managers continue their disciplined value approach, adding positions in SK hynix, ICON, NatWest, and Theon International while focusing on companies where prices diverge from intrinsic value.

Osterweis Opportunity Fund outperformed in Q4 despite lagging for the year, as thematic investing dominated over fundamentals. Strong semiconductor and fintech holdings drove performance while avoiding speculative AI and biotech names. Manager expects return to fundamentals-driven markets and sees opportunities across AI, robotics, and healthcare diagnostics secular trends.

Markets delivered strong 2025 returns driven by AI-led technology earnings and international outperformance, but elevated valuations at 23x forward earnings mean future returns depend on earnings durability rather than multiple expansion. Sustained capital investment in AI, infrastructure, and energy supports growth, though selectivity and focus on strong fundamentals become increasingly important in this environment.