Core Insights - Impax US Sustainable Economy Fund reported a total return of 16.00% for its Institutional Class in 2025, slightly underperforming the Russell 1000's return of 17.37% due to sector allocation and company-level developments [1] - The fund's performance was positively influenced by sustainability tilts and stock-specific gains, particularly in Health Care and Financials, despite market volatility and concerns over elevated valuations [1] - Management maintains a cautiously optimistic outlook, supported by falling interest rates, resilient corporate earnings, and continued investment in businesses benefiting from the transition to a sustainable economy [1] Company-Specific Insights - Oracle Corporation (NYSE:ORCL) is highlighted for its strong sustainability profile and opportunities in Digital Infrastructure, Education, and Enhanced Skills & Innovation [3] - The stock of Oracle Corporation experienced a one-month return of -11.45%, with shares trading between $118.86 and $345.72 over the past 52 weeks, closing at approximately $153.97 on February 17, 2026, with a market capitalization of about $442.52 billion [2] - Concerns have arisen regarding Oracle's accumulation of excessive debt to finance its AI data center expansion, which has contributed to its recent stock decline [3][4] Hedge Fund Interest - Oracle Corporation is not among the 30 most popular stocks among hedge funds, with 122 hedge fund portfolios holding the stock at the end of Q3 2025, a slight decrease from 124 in the previous quarter [4] - There is a belief that other AI stocks may offer greater potential for higher returns compared to Oracle Corporation [4]

Core Insights - Impax Asset Management's "Impax US Sustainable Economy Fund" reported a modest outperformance against the Russell 1000 benchmark, driven by sustainability-focused investments and specific stock gains, particularly in Health Care and Financials [1] - The Fund's Institutional Class achieved a total return of 16.00% in 2025, compared to 17.37% for the Russell 1000, influenced by sector allocation and company-level developments [1] - Management maintains a cautiously optimistic outlook, supported by falling interest rates, resilient corporate earnings, and ongoing investments in businesses benefiting from the transition to a sustainable economy [1] Company Highlights - Merck & Co., Inc. (NYSE:MRK) is highlighted for its strong performance in the biopharmaceutical sector, particularly through its oncology and immunology portfolio, with a notable contribution from the drug Keytruda [2][3] - The stock of Merck & Co., Inc. (NYSE:MRK) experienced a one-month return of 9.41%, with shares trading between $73.31 and $123.33 over the past 52 weeks, closing at approximately $121.57 on February 17, 2026, and a market capitalization of about $303.66 billion [2] - Merck's shares advanced due to strong sales of its oncology and immunology medications, with positive clinical trial results and an upward adjustment to 2026 earnings guidance boosting market confidence [3]

Impax Asset Management's "Impax US Sustainable Economy Fund" released its Q4 2025 investor letter. A copy of the letter can be downloaded here. The fund reported that equity markets remained volatile during the quarter amid concerns over elevated valuations and financing for large-scale data center investments, although the portfolio modestly outperformed the Russell 1000 benchmark on the back of sustainability tilts and stock-specific gains, particularly within Health Care and Financials. On an annual basi ...

Fund Performance - Impax US Sustainable Economy Fund reported a total return of 16.00% in 2025, compared to 17.37% for the Russell 1000, indicating a modest underperformance influenced by sector allocation and company-level developments [1] - The fund's performance was positively impacted by sustainability tilts and stock-specific gains, particularly in Health Care and Financials, despite overall market volatility [1] Market Conditions - Equity markets remained volatile during Q4 2025 due to concerns over elevated valuations and financing for large-scale data center investments [1] - Management expressed a cautiously optimistic outlook, supported by falling interest rates, resilient corporate earnings, and continued investment in businesses positioned for a sustainable economy transition [1] Company Focus: Zoetis Inc. - Zoetis Inc. (NYSE:ZTS) is highlighted for its attractive sustainability opportunity profile and strong governance, with a one-month return of 0.90% and a market capitalization of approximately $55.33 billion [2][3] - The company has a full pipeline of new products expected to launch, but revenue growth acceleration is anticipated to begin in 2027, facing competition and challenges with established products [3] - Disappointment was noted in Zoetis' Q3 earnings update, particularly regarding the performance of its canine arthritis pain product Librela, which faced side-effect perception issues [3]

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