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 bought Advance Auto Parts Inc. (NYSE:AAP) highlighted stocks like Based in Raleigh, North Carolina, Advance Auto Parts, Inc. (NYSE:AAP) is a provider of automotive replacement parts and accessories. Advance Auto Parts, Inc. (NYSE:AAP)’s one-month return was -8.99%, and its shares gained 37.59% of their value over the past 52 weeks. On March 06, 2026, Advance Auto Parts, Inc. (NYSE:AAP) stock closed at $50.33 per share, with a market capitalization of $3.025 billion.
iMGP Small Company Fund held Advance Auto Parts, Inc. in its fourth quarter 2025 investor letter. (NYSE:AAP) said the following:
“At the individual name level, the biggest drag during the quarter was consumer discretionary retention. Advance Auto Parts, Inc. (NYSE: AAP). AAP is undergoing a significant transformation under the new leadership. Although we see growth in ROIC decisions and actions, earnings are still not flexible. As we have discussed in the past, the current market only continues to deliver real-time results as they deserve credit. AAP is one of our top beliefs holding long-term ROIC opportunities, but the timing of major inflation is somewhat constrained by inflationary dynamics and consumer behavior.
Advance Auto Parts, Inc. (NYSE:AAP) is not on our list of the 40 most popular stocks among hedge funds in 2026. According to our database, 33 hedge fund portfolios held Advance Auto Parts, Inc. at the end of the fourth quarter. (NYSE:AAP) was up from last 32 quarters. While we are investing in Advance Auto Parts, Inc. (NYSE:AAP) potential, we believe some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
