Overview
- The fund reported a 1.33% return in Q4 2025 versus 2.19% for the Russell 2000 and finished 2025 essentially flat at 0.01% against the index’s 12.81%.
- Management attributes the relative shortfall primarily to a biotech surge of more than 25%, a sector the fund typically avoids due to binary risk.
- Advance Auto Parts was the quarter’s largest detractor as a turnaround’s earnings inflection was delayed by inflation dynamics and consumer behavior; 33 hedge fund portfolios held AAP at Q4’s end, and the stock closed at $50.33 on March 6.
- Amkor Technology was the top performer after an AI-focused re-rating and an NVIDIA mention as an advanced packaging partner; hedge fund holders rose to 48 by quarter-end, and the stock closed at $43.22 on March 9.
- Manhattan Associates traded lower on weaker-than-expected Q3 bookings, retail softness, and cautious software sentiment, with the fund maintaining conviction as 33 hedge fund portfolios held shares at Q4’s close.