5 days ago
6
Attiya Zainib
Mon, January 19, 2026 astatine 9:29 AM CST 4 min read
Fiduciary Management Inc, an Investment Counsel, released its Q4 2025 capitalist letter. In its Investment Strategy Outlook, the money reported coagulated semipermanent show but acknowledged lagging broader indices amid a speculative, AI-driven marketplace rally. A transcript of the missive tin be downloaded here. Equity markets posted beardown gains successful 2025, fueled by risk-seeking behaviour and dense attraction successful a constrictive acceptable of AI-linked stocks, contempt historically precocious valuations. The steadfast noted that quality-focused and value-oriented strategies underperformed during the year, peculiarly successful tiny caps, arsenic low-quality and high-beta stocks dominated returns. While recognizing AI’s semipermanent potential, the missive expressed interest implicit excessive superior spending, stretched valuations, and rising superior intensity. The money emphasized discipline, downside protection, and adherence to its quality-value attack arsenic signs of a marketplace bubble proceed to build. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.
The money highlights Hayward Holdings, Inc. (NYSE:HAYW) arsenic a small-cap holding benefiting from normalized request aft a post-pandemic slowdown, with net powerfulness good supra what the marketplace presently prices in. Despite cyclical pressure, Hayward Holdings, Inc. (NYSE:HAYW) maintains beardown margins and cash-generation potential, allowing the money to presumption the banal arsenic undervalued comparative to mid-cycle earnings. The concern lawsuit rests connected betterment successful volumes and a valuation that already discounts an overly pessimistic scenario. The one‑month instrumentality of Hayward Holdings, Inc. (NYSE:HAYW) was astir 5.51%, and its shares gained astir 11.59% of their worth implicit the past 12 months. On January 16, 2026, Hayward Holdings (NYSE:HAYW) banal closed astatine astir $16.85 per share, with a marketplace capitalization of astir $3.65 billion.
Fiduciary Management Inc stated the pursuing regarding Hayward Holdings (NYSE:HAYW) successful its 4th fourth 2025 capitalist letter:
"Hayward Holdings (NYSE:HAYW) is simply a starring planetary excavation instrumentality manufacturer, chiefly serving the residential excavation market. North America accounts for 85% of income and implicit 90% of profits. Product categories see Pumps, Automation and Sanitization, Heaters, Filters, Lighting and Water Features, and Cleaners. The institution estimates that 80% of full income travel from their existing installed basal of pools (50% repair and replacement), making the concern comparatively resilient to economical cycles. Hayward besides exhibits beardown pricing powerfulness arsenic instrumentality acquisition decisions are typically made by excavation work professionals, who are little delicate to terms than the extremity customer. Pool work professionals besides thin to beryllium hazard averse and chiefly acquisition instrumentality from the starring players successful the industry. These dynamics pb to precocious margins and ROIC. The excavation manufacture went done a play of supercharged maturation successful the aboriginal parts of Covid, which gave mode to a play of highly anemic end-market demand, exacerbated by destocking successful the organisation channel. The manufacture has since stabilized but is inactive experiencing lackluster request for recently built and remodeled pools. We judge that implicit time, the discretionary sides of the concern should recover. In the meantime, Hayward should beryllium capable to proceed raising prices and increasing volumes wrong the installed basal of pools. They person a coagulated equilibrium sheet, beardown absorption team, and tenable valuation multiple, peculiarly fixed their depressed earnings."
.png)
English (CA) · 
English (US) · 
Spanish (MX) ·