LHC Capital returned 3.1% in 2025, outperforming Australian tech despite sector headwinds from AI concerns and policy rotation. Strong contributors MA Financial and HUB24 offset weakness in Pro Medicus and REA Group. Underlying business fundamentals improved significantly while valuations compressed, creating attractive prospective returns. Managers expect quality businesses to lead recovery similar to 2022-2025 period.

Deep Sail Capital delivered 34.8% net returns in 2025 through disciplined long/short investing in quality small-cap growth companies. The fund benefits from key holdings like Kraken Robotics in defense technology and Sanuwave Health in medical devices, while positioning for a run it hot economic environment that favors growth over inflation control in the near term.

EMA GARP Fund gained 174.5% in 2025 betting on precious metals amid monetary system breakdown. Fed restarted money printing while Trump Administration plans massive fiscal stimulus. Gold and silver miners trade cheap relative to underlying metals despite 70% profit margins. Physical silver shortages emerging as critical mineral. Fund believes still early in secular sound money trend.

Olesen Value Fund targets neglected micro and small cap securities trading below intrinsic value through bottom-up fundamental analysis. The concentrated portfolio of 10-20 positions has delivered 13.1% annualized returns since 2008 inception versus 11.8% for global markets, capitalizing on systematic mispricings where institutional competition is limited.

Opal Capital delivered strong Q4 performance through international diversification while warning of structural risks building beneath market strength. They position for 2026 with global diversification, active risk management, and hedging strategies, expecting higher volatility and dispersion. Key themes include concentration risk in U.S. markets, dollar weakness benefiting international exposure, and elevated valuations preceding potential sell-offs.

GreensKeeper Value Fund returned +0.4% in 2025, hurt by currency headwinds and market concentration favoring growth. Alphabet led gains on AI success while Fiserv collapsed on accounting revelations. The fund maintains disciplined value approach, trimming winners and holding 14.7% cash defensively, confident that valuations will ultimately matter despite current market dynamics.

Brandes Core Plus Fixed Income Fund maintains defensive positioning amid historically tight credit spreads and persistent inflation concerns. Despite Fed rate cuts, the manager questions economic justification given 25% cumulative inflation since COVID and emerging private credit stress. Fund favors shorter-duration corporates with strong asset coverage, managing duration 10% below benchmark while remaining optimistic about security selection opportunities.

Brandes International Equity delivered exceptional 39% annual returns in 2025, outperforming benchmarks through strong emerging market stock selection and value rotation. Despite the rally, international value stocks remain historically cheap versus growth. The portfolio added UK utilities and packaging exposure while maintaining overweights in defensive sectors and emerging markets positioning.

Fairlight Alpha delivered 66.2% returns in 2025 through concentrated positions in undervalued junior gold miners and niche technology companies. The fund exploits market mispricings created by AI capital allocation shifts that are driving a hidden recession in traditional sectors while creating opportunities in overlooked, fundamentally strong businesses trading at attractive valuations.

Brandes Small Cap Value Fund outperformed with 5.88% quarterly returns driven by industrials holdings including Kennametal, Graham Corporation, Moog, and Hexcel. The fund sold Avadel after a bidding war reached intrinsic value and added Central Garden & Pet as an attractive value opportunity. Management maintains optimism on value stocks with differentiated positioning versus small-cap benchmarks.

Fund down 20% in Q4 but outperformed broader crypto selloff through defensive positioning. Shifting to Bitcoin-only strategy based on data showing 1-in-70 odds for altcoins beating Bitcoin. Manager believes cycle correction may have begun in October, positioning with two-thirds Bitcoin, one-third cash for potential year-long reset period.

FCL delivered 16.88% USD returns in 2025 by positioning in undervalued copper miners as indirect AI plays. The fund built diversified copper exposure expecting structural demand from data centers, EVs, and renewables against constrained supply. FCL warns Brazilian investors about false CDI safety and expensive US tech valuations while anticipating tokenization opportunities in 2026.

Bell's quality-focused global equity strategy underperformed in December as risk-on sentiment favored momentum over fundamentals. Despite challenging 2025 performance, the team maintains conviction in their QARP approach, citing compelling valuations across quality businesses and expecting a transition toward earnings-driven market leadership in 2026 that should favor their investment style.

Bell Global Emerging Companies Fund's quality-focused approach faced style headwinds in December, declining 1.8% versus the index's -0.8%. Industrial and technology holdings drove positive performance while consumer discretionary lagged. The team strategically repositioned the portfolio for 2026, adding industrial distributor W.W. Grainger and wealth manager LPL Financial. Compelling valuations and earnings-driven market transition expected to favor quality companies ahead.

Alluvium's concentrated value fund struggled in Q4 2025 with -1.1% returns despite Alphabet's AI-driven surge. Major positions Charter Communications and Liberty Broadband declined sharply on competitive pressures while Ryanair delivered strong performance as the largest holding. The managers maintain their disciplined value approach but acknowledge timing challenges in current market conditions.

Small cap value fund underperformed in Q4 due to healthcare underweight and materials positioning. Strong stock selection in technology, particularly Amkor Technology benefiting from AI packaging trends. Maintains overweight positions in banks, consumer discretionary, and industrials. Managers remain constructive on banking sector fundamentals and seek undervalued companies where quality exceeds current valuations.

Emerging markets delivered strong Q4 performance driven by AI-related technology stocks, particularly semiconductors in Asia ex-China. The fund's IT positioning and beneficial consumer staples underweight drove outperformance. Despite trade policy uncertainty, EM companies have adapted well and remain attractively valued with favorable demographics and supportive policy environments, positioning them for continued resilience in 2026.

American Century's International Growth Fund returned 0.33% in Q4 2025, lagging the MSCI EAFE benchmark. The fund reduced data center exposure due to AI uncertainty while increasing focus on factory automation and healthcare innovation. Key contributors included European financials and pharmaceuticals, while luxury automaker Ferrari detracted on conservative guidance. The portfolio maintains conviction in companies with strong fundamentals trading below intrinsic value.

American Century Equity Income Fund returned 1.84% in Q4 2025, underperforming due to limited communication services and semiconductor exposure. The fund maintains defensive positioning in higher-quality companies with stable cash flows, overweighting consumer staples and healthcare while remaining selective in financials amid rising credit concerns and uncertain macroeconomic conditions.

AVI delivered +2.9% in Q4 2025 through discount arbitrage in investment trusts. Energy storage leader GRID and capital allocation champion Georgia Capital drove performance. Private equity funds offer compelling arbitrage opportunities selling underlying assets at tight discounts to fund wide-discount buybacks. Renewable investments faced regulatory headwinds but present selective opportunities at distressed valuations.

RLH SPAC Fund delivered 21.8% returns in 2025 through disciplined SPAC arbitrage, non-redemption agreements, and proprietary investments. Strong SPAC IPO issuance but weak deal announcements created attractive yields despite recent IPO underperformance. The Fund positioned defensively in new issues while capitalizing on yield widening and growing market recognition of SPAC optionality entering 2026.

Downing Fox's diversified multi-strategy approach delivered solid absolute returns but lagged in 2025's mega-cap dominated market. Their small-cap focus and active management philosophy faced headwinds from two-speed markets favoring large companies. Despite relative underperformance, the manager maintains conviction in their survive-first strategy, believing current positioning offers superior long-term risk-adjusted returns when market leadership eventually rotates.

GCQ delivered +2.0% in 2025 despite challenging stock-picking conditions dominated by AI momentum. Hemnet's 60% decline from highs created the primary drag, though the Swedish real estate portal maintains 90% market share. The team views current portfolio valuations as extremely attractive and remains optimistic about 2026 as market focus shifts back to quality fundamentals.

Global markets completed another strong year with decoupling from US dominance driving non-US outperformance, AI momentum overcoming valuation concerns, and market broadening creating active manager opportunities. Small caps varied by region with biotech and precious metals leading. Fed cuts and tariff-driven domestic themes provided catalysts while elevated valuations and political uncertainty remain risks.

Wasatch Micro Cap Fund underperformed in Q4 2025 and full year due to market preference for unprofitable biotechnology companies over quality holdings. Fund maintained discipline, avoiding low-quality rally while positioning in profitable microcaps with strong fundamentals. Managers expect quality focus to drive long-term outperformance as market eventually rewards profitability over speculation.

Square Peg delivered 24% portfolio growth over six months while positioning for unprecedented AI-driven transformation across industries. Their focus on AI-native applications at the application layer builds on 13 years of SaaS expertise, with portfolio companies spanning foundational models to enterprise applications. They view current AI adoption as early days of profound technological change.

Wasatch Small Cap Growth suffered its worst year in 25+ years due to avoiding speculative biotech and AI-related stocks that led markets. Despite solid portfolio fundamentals with superior ROA/ROE metrics, quality was out of favor. Managers remain disciplined, avoiding low-quality momentum plays, positioning for eventual rotation back to fundamentally sound businesses at attractive relative valuations.

Eight disinflationary forces including weakened labor markets, restrictive credit conditions, and global stagnation will persist in 2026. Unit labor cost growth of 1.2% and declining inflation expectations support long-term Treasury bonds. The fund maintains positioning in long-duration Treasuries as yields appear increasingly favorable under the Fisher equation framework.

Jensen Quality Growth Fund underperformed in 2025 due to market concentration in mega-cap AI stocks, but evolved its portfolio to include AI beneficiaries meeting quality criteria like Nvidia and Meta. The manager maintains discipline in quality investing while positioning for broader market leadership beyond AI concentration, expecting relative performance to improve as fundamentals reassert themselves.

Emerging Markets Growth delivered strong 21.6% absolute returns in 2025 but lagged benchmarks due to multiple compression in quality holdings. AI-driven semiconductor strength offset ecommerce headwinds from Sea, MercadoLibre, and Coupang. Portfolio positioned for secular digitalization and AI trends with historically attractive valuations and mid-20% expected earnings growth creating compelling long-term opportunity despite near-term performance challenges.

Arquitos delivered 82.1% returns in 2025 through concentrated biotech special situations. Liquidia's successful drug launch captured 25% market share while ENDI and Finch advanced operationally and legally. Manager maintains high conviction in current holdings, viewing them as still undervalued despite strong performance, with multiple catalysts ahead including potential M&A activity.

Zverev's innovation fund capitalizes on structural technology adoption beyond AI hype. Strong performance from memory semiconductors and photonics validates long-term themes. Added to quality positions during temporary weakness in machine vision, defense tech, and industrial software. New investments target data center optical transitions and Alzheimer's diagnostics leadership. Portfolio positioned for innovation frontiers with compelling fundamentals.

UBS recommends deploying cash as Fed cuts rates, targeting AI and transformational innovation themes with 41% expected growth. Gold provides portfolio diversification amid geopolitical risks. Favor US tech and healthcare, European quality, Asian markets. Reduce dollar exposure. Energy transition remains attractive despite policy uncertainty. Use market dips for phased entry into preferred sectors.

Thornburg Equity Income Builder outperformed significantly in 2025 with a 36.96% return, focusing on dividend-paying companies with resilient businesses trading at attractive 14.3x P/E versus market's 21.6x. Despite macro uncertainties around inflation and trade policies, the manager remains optimistic given the portfolio's strong market positions, sustainable cash flows, and compelling valuations relative to history.

Third Avenue Small-Cap Value Fund delivered strong Q4 and full-year 2025 returns through disciplined value investing focused on owner-operator companies. Kaiser Aluminum and Collegium Pharmaceutical led performance while the fund opportunistically initiated Flagstar Bank at attractive valuations. The managers prioritize governance alignment and long-term value creation, maintaining selective positioning with 5.2% cash.

Third Avenue Real Estate Value Fund delivered 11.61% returns in 2025 through concentrated exposure to discounted real estate platforms engaging in value-surfacing activities. With portfolio companies trading at 20%+ discounts to NAV and compelling relative valuations versus broader markets, the Fund is positioned for multi-year outperformance as capital flows reverse from private to public real estate.

Third Avenue Value Fund delivered strong Q4 and full-year performance driven by copper miners and European banks. Mining companies benefited from growing appreciation of copper's indispensable role in electrification and data center buildouts amid persistent supply challenges. Resource conversion activity across portfolio companies created additional value through strategic transactions, asset sales, and capital returns to shareholders.

International Growth underperformed in Q4 despite strong earnings growth as style headwinds favored value over growth. The portfolio maintains disciplined exposure to AI, defense, robotics, energy transition, and space themes through quality businesses with clear economic models. Historically compressed valuations combined with above-benchmark earnings growth create compelling long-term opportunities despite near-term style challenges.

Technology Innovators delivered 14.7% returns in 2025 but lagged benchmarks due to multiple compression despite strong earnings growth. The strategy maintained disciplined AI exposure while navigating market volatility, evolving positions in semiconductors and internet platforms. Five key themes - defense, robotics, energy transition, cybersecurity, and space - position the concentrated portfolio for long-term value creation despite near-term market dislocations.

Angel Oak High Yield Opportunities ETF's strategy centers on consumer and corporate resilience driving economic strength despite tight credit spreads. The fund emphasizes high-quality issuers with strong fundamentals while gradually reducing securitized credit exposure. Fed rate cuts and 2026 policy changes should support continued growth, though disciplined selection remains critical given limited spread compression room.

Sands Capital Select Growth underperformed in Q4 despite strong absolute returns, as multiple compression overwhelmed benchmark-beating earnings growth. The firm maintains disciplined exposure to AI infrastructure, defense technology, robotics, energy transition, cybersecurity, and space themes while avoiding bubble excesses. Portfolio positioned for long-term value creation across transformational innovation themes at historically attractive valuations.

Sands Capital's Global Growth strategy returned 10.2% in 2025, lagging benchmarks due to valuation compression despite strong earnings growth. The portfolio maintains disciplined AI exposure while expanding into defense technology, robotics, energy transition, cybersecurity, and space themes. Trading at historically low valuations with intact fundamentals, management sees compelling long-term opportunities ahead.

Mondrian sees superior value opportunities in non-US markets with less AI concentration risk and broader stock-picking potential. Despite European banks' 77% rally, firm maintains underweight given stretched valuations. AI boom creates systemic fragility through debt-funded expansion with unproven economics. Currency tailwinds expected to support international returns while disciplined valuation approach identifies mis-priced securities globally.

NewBridge Large Cap Growth delivered solid Q4 returns despite slight benchmark underperformance, driven by strong Technology sector results offset by Uber weakness versus Tesla strength. The portfolio maintains high-growth, high-quality positioning with 98% in growth companies. Management remains confident in fundamental-driven approach amid Fed uncertainty and Trump policy changes, believing opportunities outweigh risks for diversified growth portfolio.

US markets delivered strong 2025 returns led by technology despite early volatility from inflation and trade concerns. Fed cut rates three times while maintaining restrictive stance. Corporate fundamentals stayed healthy with robust AI-driven investment. 2026 outlook hinges on persistent inflation pressures, labor market divergence, and earnings growth needed to justify higher valuations amid continued selectivity requirements.

Ameliora delivered strong 2025 performance driven by precious metals overweight as gold gained 64% and silver surged 145%. Maintains broadly neutral equity stance while reducing long-dated bond exposure due to debt concerns. Expects positive year ahead from 14-15% profit growth and falling rates, but monitoring AI bubble risks and geopolitical uncertainties including potential China-Taiwan conflict.

Kennedy Capital's value-focused Mid Cap strategy significantly underperformed in 2025 as their high-CFROI approach was out of favor during AI-driven market leadership. The firm maintains conviction in their core philosophy while making tactical adjustments, exiting rate-sensitive positions and adding underappreciated AI beneficiaries. They view current headwinds as temporary style rotation.

Easterly Hedged Equity Fund delivered 11.87% returns in 2025 while maintaining significantly lower volatility than the S&P 500 through systematic options hedging. The Fund captured 66% of market upside with 48% of index volatility, successfully navigating elevated valuations and policy uncertainty while positioning for continued beta management across changing market cycles.

Resilient Asset Management advocates diversification over market timing after international markets outperformed domestic in 2025. Manager emphasizes that uncertainty is constant throughout history, not unique to today, while discussing AI's uncertain but significant market impact. With Buffett retiring from Berkshire, the focus remains on long-term investing and controllable planning factors rather than predicting 2026 market direction.