Fiduciary Management Inc, an Investment Counsel, released its Q4 2025 investor letter. In its Investment Strategy Outlook, the fund reported solid long-term performance but acknowledged lagging broader indices amid a speculative, AI-driven market rally. A copy of the letter can be downloaded here. Equity markets posted strong gains in 2025, fueled by risk-seeking behavior and heavy concentration in a narrow set of AI-linked stocks, despite historically high valuations. The firm noted that quality-focused and value-oriented strategies underperformed during the year, particularly in small caps, as low-quality and high-beta stocks dominated returns. While recognizing AI’s long-term potential, the letter expressed concern over excessive capital spending, stretched valuations, and rising capital intensity. The fund emphasized discipline, downside protection, and adherence to its quality-value approach as signs of a market bubble continue to build. In addition, please check the fund’s top five holdings to know its best picks in 2025.
The letter notes that Accenture plc (NYSE:ACN)’s share price weakness reflects near-term concerns around enterprise IT spending and AI-related uncertainty rather than structural deterioration. Financially, the fund emphasizes Accenture plc (NYSE:ACN)’s resilient cash flows, diversified revenue base, and long-term earnings durability as digital and AI adoption accelerates. This disconnect between valuation and fundamentals is what underpins the fund’s continued confidence. The one‑month return of Accenture plc (NYSE:ACN) was approximately +5.74%, and its shares lost about −18.83% of their value over the last 52 weeks. On January 16, 2026, Accenture plc (NYSE:ACN) stock closed at approximately $286.21 per share, with a market capitalization of about $176.11 billion.
Fiduciary Management Inc stated the following regarding Accenture plc (NYSE:ACN) in its fourth quarter 2025 investor letter:
“Accenture plc (NYSE:ACN) is the world’s leading IT consultant, with advantages stemming from their depth and breadth across products, geographies, and industries. Their revenue is split roughly in half between IT consulting and managed services. Over the last four years, Accenture’s valuation has roughly halved. They’ve faced headwinds in IT spending and suffered from the perception that they are an AI loser. We believe that AI will cause deflationary pressure in parts of their business, but that it will be more than offset by the work required for enterprises to adopt AI. This is recently evidenced by partnerships with OpenAI and Anthropic. The AI supplier landscape is increasingly fragmented, and corporate customers need significant help adopting these technologies at scale. We believe this will drive AI suppliers and customers into Accenture’s arms. The current cyclical pressures are being attributed to structural issues, which we believe is incorrect, creating an attractive long-term set-up.”
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Accenture plc (NYSE:ACN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the third quarter, which was 65 in the previous quarter. While we acknowledge the risk and potential of Accenture plc (NYSE:ACN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Accenture plc (NYSE:ACN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Accenture plc (NYSE:ACN) and shared the AI stocks gaining attention on Wall Street. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
