Fiduciary Management Inc’s Q4 2025 Investor Letter

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. 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.

A copy of Fiduciary Management Inc’s Q4 2025 investor letter can be downloaded here.