Investors’ Confidence Boosted Perimeter Solutions (PRM) in Q4

Core Insights - iMGP Small Company Fund underperformed in Q4 2025 with a return of 1.33%, compared to the Russell 2000 Index's 2.19% return, and had flat returns of 0.01% for the entire year against the Index's 12.81% [1] - The Fund's poor performance was attributed to the strong performance of biotech stocks, which increased by over 25%, as the Fund typically avoids such stocks due to their binary nature [1] - The Fund aims to refine its investment process and focus on high-quality, growing firms moving into 2026 [1] Company Focus: Perimeter Solutions, Inc. (NYSE:PRM) - Perimeter Solutions, Inc. is a leading manufacturer of firefighting products and has a market capitalization of $3.56 billion [2] - The stock closed at $23.82 per share on March 09, 2026, with a one-month return of -12.62% but a remarkable 52-week gain of 159.76% [2] - The company is the sole supplier of aerially deployed fire-retardant chemicals, and its stock outperformed in Q4 due to increased market confidence and a new five-year agreement with the U.S. Department of Agriculture [3] - In 2025, a competitor exited the market, which solidified PRM's monopoly status, and the company reported growth in fire retardant revenue despite a 60% year-over-year decline in acres burned in the U.S. [3] - The improved revenue mix and competitive clarity are expected to enhance the valuation multiple investors assign to PRM's earnings, which are growing significantly [3] - The company has also made strategic capital deployments to acquire a new business platform, which is anticipated to generate strong returns for shareholders [3]