Jacob Funds’ Q4 2025 Investor Letter

Jacob Funds, a mutual fund company, released its fourth-quarter 2025 investor letter. After an optimistic quarter, equity markets corrected slightly in November. Although overall economic growth has been robust throughout the year, recent divergent data on consumer spending and the labor market have put doubt on future projections. This pattern has become somewhat familiar over the past few years, as conflicting economic data has become the norm. As for the Fund’s strategy, the recent moderation in AI tech companies seems beneficial, and the firm believes the new productivity cycle will accelerate profit margins and earnings growth, resulting in weaker labor markets. Small companies could benefit from this trend, resulting in potential expansion in valuation multiples, and in turn, be favorable for its Funds compared to peers. In addition, please check the Funds’ top five holdings to know its best picks in 2025.

A copy of Jacob Funds’ Q4 2025 investor letter can be downloaded here.