Greystone Capital Management, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the Median Account return for separate accounts managed by the firm was +0.3%, net of fees brining the full year net returns to +2.8%. The Fund has returned a cumulative +197.7% or +21.9% per year, net of fees, since inception in Q4 2019. When compared to the S&P 500 and Russell 2000 returns, the results for the fourth quarter and the full year of 2025 were disappointing, which stood at +2.7% and +2.2%, respectively, for the quarter, and +17.4% and +13.5%, respectively, for 2025. While fourth-quarter and full-year 2025 results lagged behind indices, the firm maintains a long-term approach, not focusing on single quarters or calendar years. The concentrated, differentiated strategy leads to expected divergence from major indices, with tracking error seen as a feature rather than a flaw. The firm cited poor stock selection, strong performers in 2024 facing valuation compression, and a lack of AI-themed investments as reasons for its underperformance in 2025. In addition, you can check the Fund’s top 5 holdings to find out its best picks for 2025.
In its fourth-quarter 2025 investor letter, Greystone Capital Management highlighted Shift4 Payments, Inc. (NYSE:FOUR). Shift4 Payments, Inc. (NYSE:FOUR) is a software and payment processing solutions company. On March 11, 2026, Shift4 Payments, Inc. (NYSE:FOUR) stock closed at $47.23 per share. One-month return of Shift4 Payments, Inc. (NYSE:FOUR) was -13.45%, and its shares lost 43.95% over the past 52 weeks. Shift4 Payments, Inc. (NYSE:FOUR) has a market capitalization of $4.82 billion.
Greystone Capital Management stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its fourth quarter 2025 investor letter:
“During the quarter, we initiated a position in Shift4 Payments, Inc. (NYSE:FOUR), an integrated payments company with a long track record of operational execution and disciplined capital allocation. Founded in 1999 in a New Jersey basement, Shift4 has steadily built a leading position across hospitality, restaurant, and stadium end markets. While shares have declined more than 40% over the past year alongside much of the payments sector, the underlying business has continued to perform well, with solid organic growth, expanding gross margins, and the completion of its largest acquisition to date, Global Blue, during 2025.
Throughout its 26-year history, Shift4 has evolved substantially, pairing deep industry knowledge with a consistent ability to adapt as the payments landscape has changed. This combination of experience and ongoing iteration has created a durable competitive position, enabling the company to continue gaining share across restaurant, stadium, and resort verticals while increasingly embedding merchants into its end-to-end payments ecosystem. Despite this progress and a long runway for continued growth, the market is valuing Shift4 as a legacy, leveraged payments processor, rather than as a recurring, high-retention platform characterized by strong incremental margins, meaningful switching costs, and a differentiated operating culture.
Under conservative assumptions, Shift4 has the potential to grow revenue and free cash flow at a 20–25% rate over the coming years, a trajectory that should support a higher valuation as execution continues. With a founder-led management team focused on disciplined capital allocation, an active share repurchase program covering roughly 20% of shares outstanding, and a compelling starting valuation, FOUR offers an attractive long-term risk-adjusted return profile…” (Click here to read the full text)
Shift4 Payments, Inc. (NYSE:FOUR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held Shift4 Payments, Inc. (NYSE:FOUR) at the end of the fourth quarter, up from 45 in the previous quarter. In Q4 2025, Shift4 Payments, Inc.’s (NYSE:FOUR) gross revenue increased 34% year-over-year to $1.189 billion. While we acknowledge the risk and potential of Shift4 Payments, Inc. (NYSE:FOUR) 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 Shift4 Payments, Inc. (NYSE:FOUR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Shift4 Payments, Inc. (NYSE:FOUR) and shared BBH Select Series – Mid Cap Fund’s views on the company. 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.
