Overview
- The fund returned 3.35% in Q4 2025 versus 2.66% for the S&P 500 and 3.81% for the Russell 1000 Value Index.
- Only about 5% of the portfolio rose 20% or more in 2025 compared with roughly 35% of S&P 500 constituents, a gap the manager says drove relative underperformance.
- PayPal remained a detractor despite margin, free‑cash‑flow and buyback progress, with branded checkout growth in the mid‑single digits and shares at $56.88 on Jan. 16 after a 38% 52‑week decline as hedge‑fund holders fell to 86 in Q3.
- IAC, MGM Resorts and Angi contributed in aggregate, with IAC pursuing simplification that retains People Inc. and roughly a 25% MGM stake while focusing on repurchases and increasing its MGM position.
- MGM faced softer Las Vegas trends in 2025 but saw a BetMGM turnaround and strength in regional properties and Macau, and management has repurchased over 40% of shares in the past five years.