Do You Have Faith in the Long-Term Outlook of Limbach Holdings (LMB)?

Core Insights - The Wasatch Micro-Cap Fund reported a return of 9.52% in Q3 2025, underperforming the benchmark Russell Microcap® Growth Index, which returned 19.93% [1] Company Performance - Limbach Holdings, Inc. (NASDAQ:LMB) had a one-month return of 19.88% but experienced a 10.91% decline over the past 52 weeks, closing at $79.03 per share with a market capitalization of $918.809 million on December 17, 2025 [2] - Limbach Holdings was a leading detractor from the fund's performance due to poor communication regarding earnings guidance from a recent acquisition and organic growth outlook [3] Strategic Shifts - Limbach Holdings is shifting its business model from working with general contractors to establishing direct relationships with building owners, which is expected to be more profitable and stable [3] Market Sentiment - The market's negative reaction to Limbach's guidance was viewed as overstated, and the fund maintains a positive long-term outlook on the stock, having increased its position [3] - Limbach Holdings was held by 23 hedge fund portfolios at the end of Q3, an increase from 19 in the previous quarter, indicating growing interest despite its challenges [4]