Positive Sentiments Drove FedEx (FDX) Stock Gains

Core Insights - Hotchkis & Wiley Large Cap Disciplined Value Fund outperformed the Russell 1000 Value Index in Q4 2025 and for the entire year, driven by positive stock selection [1] - The S&P 500 Index returned 2.7% in Q4 2025, with a yearly gain of 17.9%, but high valuations have made investors cautious, particularly due to returns being concentrated in a few stocks [1] - The Fund's performance was bolstered by strong results in the information technology and communication services sectors, with certain software companies viewed as particularly attractive [1] Company Focus: FedEx Corporation - FedEx Corporation (NYSE:FDX) was highlighted as a leading contributor to the Fund's performance, with a one-month return of 9.14% and a 52-week gain of 20.79% [2] - As of January 29, 2026, FedEx's stock closed at $319.93 per share, with a market capitalization of $75.489 billion [2] - FedEx operates one of the largest express logistics and freight networks globally, serving nearly every address in the U.S. and a vast majority of the world's GDP [3] - The company has faced challenges such as a shift towards lower-margin business-to-consumer volumes, integration difficulties in its international express segment, and soft global economic conditions [3] - Despite these challenges, FedEx is expected to recover margins as integration improves, cost discipline strengthens, and the pricing environment stabilizes [3] - Under new leadership, FedEx is focusing on operational efficiencies, reducing capital intensity, and prioritizing returns to shareholders [3] - The company's shares rose 23% in the quarter following better-than-expected earnings growth and positive management comments, alleviating investor concerns regarding muted holiday demand [3]