Soft Job Market Hurt Paycom (PAYC) Despite Delivering Above-Market Revenue Growth

Fund Performance - Spheria Global Opportunities Fund returned -3.0% in Q4 2025, underperforming the MSCI World Small Cap Accumulation Index (Net Return) AUD, which returned 2.2% [1] - In December 2025, the fund returned -1.5%, lagging the index by -0.7% [1] - The Healthcare and Materials sectors showed recovery, while Consumer Staples and Consumer Discretionary sectors were weak [1] Regional Performance - The UK lagged by approximately 2% compared to other regions, which performed similarly [1] Small Cap Performance - Small caps have not closed the value gap that emerged before the interest rate cycle began in early 2022 [1] Company Highlight: Paycom Software, Inc. - Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management solution provider for small to mid-sized companies [2] - As of March 10, 2026, Paycom's stock closed at $131.88 per share, with a one-month return of 11.12% and a 52-week loss of 36.14% [2] - Paycom has a market capitalization of $7.16 billion [2] Performance Detractors - The largest detractors from the fund's performance included an overweight position in Hemnet (-26%), Paycom Software, Inc. (-24%), and Rightmove (-27%) [3]