Core Insights - Wasatch Global Investors' "Small Cap Growth Strategy" faced challenges in Q4 2025, with small-cap equities underperforming broader market indices due to investor caution and preference for larger stocks [1] - The Russell 2000® Growth Index gained 1.22% in Q4 2025, while the Wasatch strategy ended the quarter in negative territory, influenced by stock-specific factors rather than macroeconomic issues [1] - For the full year 2025, the Russell 2000 Growth Index advanced 13.01%, contrasting with the Wasatch strategy's loss, indicating earnings volatility and valuation compression despite improving fundamentals [1] Company Focus: Vital Farms, Inc. - Vital Farms, Inc. (NASDAQ:VITL) is highlighted as a significant stock in the investor letter, focusing on ethically produced pasture-raised eggs and butter [2] - The stock experienced a one-month return of -4.94%, with a trading range of $25.51 to $53.13 over the past 52 weeks, and closed at approximately $28.41 on February 13, 2026, with a market cap of about $1.27 billion [2] - Vital Farms' stock decline is attributed to falling egg prices, raising concerns about potential market share loss, although the company is expected to maintain customer loyalty due to its ethical sourcing [3] - The company may improve margins as production costs decrease, suggesting that current investor concerns may be overstated [3]