Fiduciary Management Inc.’s Q3 2025 Investor Letter

Fiduciary Management Inc. (FMI), an independent money management firm, released its third-quarter 2025 investor letter. Stock markets rallied in the third quarter, with the Russell 2000, S&P 500, MSCI EAFE (Local/USD), and MSCI World Indices gaining 12.39%, 8.12%, 5.38%/4.77%, and 7.27% respectively. The performance was driven by a September rate cut by the Federal Reserve, strong enthusiasm for artificial intelligence (AI) and mega-cap technology, coupled with a surge of speculative buying activity. FMI’s portfolios differ from benchmarks, focusing on idiosyncratic dislocations. The firm focuses on business quality, balance sheet strength, and valuation while proceeding cautiously. Downside protection has been core to FMI for 45 years. In addition, please check the fund’s top five holdings to know its best picks in 2025.

A copy of Fiduciary Management Inc.’s Q3 2025 investor letter can be downloaded here.