iMGP World Companion, an funding administration firm, launched its fourth quarter 2025 investor letter for the “iMGP Small Firm Fund”. A duplicate of the letter will be downloaded right here. The Fund returned 1.33% within the fourth quarter in comparison with the Russell 2000 Index’s 2.19% return. The Fund’s returns have been flat at 0.01% in 2025, in comparison with a 12.81 return for the Index. In lots of respects, the market state of affairs returned to regular within the fourth quarter. The Fund’s poor efficiency within the fourth quarter was attributable to the biotech companies’ spectacular efficiency, which elevated by greater than 25%. The Fund typically avoids biotech shares resulting from their extraordinarily binary character. The vast majority of the 12 months’s underperformance occurred within the third quarter resulting from style-related components. Transferring ahead to 2026, the Fund hoped to proceed to refine its course of and enhance its efficiency with a dedication to spend money on high-quality, rising corporations. Please overview the Fund’s high 5 holdings to achieve insights into their key picks for 2025.
In its fourth-quarter 2025 investor letter, iMGP Small Firm Fund highlighted shares like AppFolio, Inc. (NASDAQ:APPF). AppFolio, Inc. (NASDAQ:APPF) is a US-based expertise firm that gives cloud-based platform for the actual property business. On March 06, 2026, AppFolio, Inc. (NASDAQ:APPF) inventory closed at $191.17 per share. One-month return of AppFolio, Inc. (NASDAQ:APPF) was 4.02%, and its shares misplaced 11.34% over the previous 52 weeks. AppFolio, Inc. (NASDAQ:APPF) has a market capitalization of $6.88 billion.
iMGP Small Firm Fund acknowledged the next concerning AppFolio, Inc. (NASDAQ:APPF) in its fourth quarter 2025 investor letter:
“AppFolio, Inc. (NASDAQ:APPF) is a cloud-based software program, knowledge, and companies supplier to the actual property business with a concentrate on small to medium-sized property managers. Ends in the quarter have been negatively impacted by a bonus accrual influence that triggered margins to contract in 2025. This was a shock. Our understanding is that this bonus accrual was partly pushed by new items added. Lengthy-term, it is a good drawback to have. Each new buyer APPF provides ought to have a particularly excessive lifetime worth. We attended APPF’s Investor Day intra quarter and got here away extra assured in APPF’s capability so as to add options that additional construct that lifetime worth. We view APPF administration as disciplined operators and would argue that appropriately compensating workers for brand spanking new enterprise is essential. We suspect that the inventory was additionally negatively impacted by considerations round AI. APPF has a direct AI native competitor for sure modules – EliseAI. APPF is introducing comparable options in 2026. We’re constructive on AI for APPF long-term as APPF controls their very own future as a system of document, serves SMBs, already has unit-based pricing relatively than seat-based pricing, and has typically executed effectively on product, together with AI.”
