iMGP Global Partners, an investment management firm, has issued a 2025 fourth quarter investor letter for “iMGP Small Company Fund”. A copy of the letter can be downloaded here. The fund returned 1.33% in the fourth quarter, compared to the Russell 2000 Index’s 2.19% return. The fund’s return was flat at 0.01% in 2025, compared to a return of 12.81 for the index. In most areas, market conditions returned to normal in the fourth quarter. The fund’s poor performance in the fourth quarter was driven by the impressive performance of the biotech business, which rose more than 25%. Funds generally avoid biotech stocks because of their highly binary nature. Most of the year’s shortfalls occurred in the third quarter due to style-related factors. Moving into 2026, the fund hoped to continue its process and improve its performance by committing to investing in high-quality, growing companies. Please review the fund’s top five holdings for 2025 to gain insight into their key picks.
In a letter to investors in the fourth quarter of 2025, iMGP small company fund AppFolio, Inc. (NASDAQ:APPF) highlighted stocks like AppFolio, Inc. (NASDAQ:APPF) is a US-based technology company that provides a cloud-based platform for the real estate industry. On March 06, 2026, AppFolio, Inc. (NASDAQ:APPF) stock closed at $191.17 per share. AppFolio, Inc. (NASDAQ:APPF)’s one-month return was 4.02%, and its shares lost 11.34% over the past 52 weeks. AppFolio Inc. (NASDAQ:APPF) has a market capitalization of $6.88 billion.
iMGP Small Company Fund announced AppFolio, Inc. in its 2025 Q4 investor letter. (NASDAQ:APPF) made the following comments:
“AppFolio, Inc. (NASDAQ:APPF) is a provider of cloud-based software, data and services to the real estate industry focused on small and medium-sized property managers. Results in the quarter were negatively impacted by the impact of bonus accruals that led to margin contraction in 2025. It was a surprise. Our understanding is that this bonus income was partially driven by the addition of new units. In the long run, this is a good problem. Every new customer APPF adds should have a very high lifetime value. We attended APPF’s quarterly investor day and felt very confident about APPF’s ability to add solutions that further enhance the value of life. We view APPF management as a disciplined driver and argue that it is important to adequately compensate employees for new businesses. We suspect stocks have also been negatively impacted by concerns surrounding AI. APPF has a direct AI main competitor for specific models – EliseAI. APPF offers comparable solutions in 2026. We are bullish on AI for the long term for APPF because APPF controls its own destiny as a system of record, serves SMBs, has previously had unit-based pricing instead of set-based pricing, and has generally executed well on products including AI.
