Spheria Asset Management, an investment management company, released its December 2025 “Spheria Global Opportunities Fund” investor letter. A copy of the letter can be downloaded here. The fund returned -3.0% in the fourth quarter, underperforming the 2.2% return of the MSCI World Small Cap Accumulation Index (Net Return) AUD. In December, the fund returned -1.5% underperforming the index by -0.7%. By sector, Healthcare continued its recovery, and the Materials sector was also strong, while Consumer Staples and Consumer Discretionary were weak. By region, the UK’s performance lagged by approximately 2%, while other regions’ results were aligned with one another. Small caps have failed to close the value gap that emerged before the interest rate cycle began in early 2022. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its December 2025 investor letter, Spheria Global Opportunities Fund highlighted Paycom Software, Inc. (NYSE:PAYC). Paycom Software, Inc. (NYSE:PAYC) is a software company that provides a cloud-based human capital management (HCM) solution for small to mid-sized companies. On March 10, 2026, Paycom Software, Inc. (NYSE:PAYC) stock closed at $131.88 per share. One-month return of Paycom Software, Inc. (NYSE:PAYC) was 11.12%, and its shares lost 36.14% over the past 52 weeks. Paycom Software, Inc. (NYSE:PAYC) has a market capitalization of $7.16 billion.
Spheria Global Opportunities Fund stated the following regarding Paycom Software, Inc. (NYSE:PAYC) in its December 2025 investor letter:
“The largest detractors from performance included an overweight position in Hemnet (HEM SS, -26%), owning Paycom Software, Inc. (NYSE:PAYC) (PAYC US, -24%), and an overweight position in Rightmove (RMV LN, -27%).
PAYC provides cloud-based human capital management (HCM) software for small to mid-sized companies in the USA. Its software includes a suite of applications in talent acquisition (recruitment & onboarding), time & labour management, and payroll. The Fund established a position in Mar-24, before adding on weakness in Sep-25.
At its core PAYC’s software helps customers to eliminate inefficiencies, reduce manual work, improve accuracy, and reduce compliance risk. Labour cost reduction is the biggest single source of value, which is achieved thanks to the company’s unified technology stack. Put simply, PAYC consolidates HR, payroll, time and labour, and recruitment in the one piece of software, reducing the need to run multiple applications and thus to perform data reconciliations between them. This translates into customers needing fewer payroll and HR staff as the organisation scales as well as freeing up staff to perform higher value work.…” (Click here to read the full text)
Paycom Software, Inc. (NYSE:PAYC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Paycom Software, Inc. (NYSE:PAYC) at the end of the fourth quarter, the same as in the previous quarter. In Q4 2025, Paycom Software, Inc. (NYSE:PAYC) delivered strong results with total revenues reaching $544 million marking an increase of 10% year over year. While we acknowledge the risk and potential of Paycom Software, Inc. (NYSE:PAYC) 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 Paycom Software, Inc. (NYSE:PAYC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Paycom Software, Inc. (NYSE:PAYC) and shared Jim Cramer’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.
