Group 1 - Generation Investment Management's "Global Equity Strategy" for Q4 2025 emphasizes the importance of patient, quality-focused investing amid market uncertainty and distortion [1] - The firm believes that current trends causing underperformance will eventually lead to better results, particularly in sectors related to AI, which are expected to provide long-term value as global computing demands increase [1] - As of December 31, 2025, the Global Equity strategy has total assets under management of USD 21.0 billion [1] Group 2 - Gartner, Inc. (NYSE:IT) reported a one-month return of -3.42% and a 52-week loss of 61.53%, with a closing stock price of $159.14 and a market capitalization of $11.47 billion as of March 30, 2026 [2] - Generation Investment exited its stake in Gartner, Inc. due to concerns that AI was beginning to impact demand for its services, although the firm remains open to future investments in the company [3] - Gartner, Inc. reported revenue of $1.8 billion for Q4 2025, reflecting a 2% year-over-year increase, but is not among the 40 most popular stocks among hedge funds heading into 2026 [5]

Group 1 - Brown Advisory Mid-Cap Growth Strategy underperformed the Russell Midcap® Growth Index in Q4 2025 due to stock selection, particularly missing out on Palantir Technologies Inc (PLTR) [1] - The Strategy aims for solid risk-adjusted returns by investing in high-quality compounders with market capitalizations between $2 billion and $50 billion at the time of purchase [1] - Gartner, Inc. (NYSE:IT) was highlighted in the investor letter, with a one-month return of 10.35% but a significant 61.45% loss over the last 52 weeks [2] Group 2 - Gartner, Inc. operates an online research, conference consulting, and advisory platform, facing challenges from macro-driven business deceleration and fears of AI disintermediation [3] - In Q4 2025, Gartner, Inc. reported revenue of $1.8 billion, reflecting a 2% year-over-year increase, with 50 hedge fund portfolios holding its stock, up from 42 in the previous quarter [5] - Despite acknowledging Gartner's potential, the company believes certain AI stocks present greater upside potential and less downside risk [5]

Core Thesis - Gartner, Inc. is positioned as a leader in the emerging market of Decision Intelligence Platforms (DIPs), which are expected to transform enterprise decision-making and drive significant growth opportunities for the company [1][5]. Company Overview - Gartner, Inc. operates as a research and advisory company across multiple regions including the United States, Canada, Europe, the Middle East, and Africa [2]. - As of February 10th, Gartner's share price was $159.89, with trailing and forward P/E ratios of 16.45 and 12.08, respectively [1]. Decision Intelligence Platforms - DIPs are defined as software that enables organizations to manage decisions comprehensively, integrating data, analytics, AI, rules, and human judgment [3]. - Gartner's inaugural Magic Quadrant for DIPs highlights the importance of structured decision-making, predicting that by 2030, modeled business decisions will be five times more trusted and 80% faster than ungoverned ones [3]. Market Opportunity - The Magic Quadrant evaluates vendors on their ability to manage the full decision lifecycle, which is crucial as organizations scale AI and seek to operationalize insights while maintaining accountability [4]. - Companies leading in the DIP space are expected to capture significant market share as enterprises prioritize actionable outcomes over raw data [5]. Investment Implications - Vendors recognized as leaders in Gartner's DIP Magic Quadrant are likely to experience accelerating adoption, driving revenue growth and creating a compelling investment case as the market shifts towards decision-centric operations [5]. - Gartner's role in legitimizing DIPs and AI-driven decision-making is seen as a key growth catalyst, despite a recent stock price depreciation of approximately 62.79% since previous bullish coverage [7].

Company Overview - Gartner, Inc. (NYSE:IT) is a research and advisory company that provides subscription-based insights, expert access, consulting services, and executive conferences [2] Recent Performance - Gartner was noted as the fifth worst performer in the S&P 500 in 2025, with a decline of almost 48% last year [2] - The company has faced challenges due to the rise of AI, which allows businesses to access information independently, reducing the need for Gartner's research services [2] Market Sentiment - Jim Cramer expressed concerns about Gartner's recent performance and the competitive threat posed by AI advancements, indicating a lack of confidence in the stock's recovery [1][2]

Core Insights - SGA's Emerging Markets Growth Strategy experienced a significant divergence from the market in Q4 2025, with a portfolio return of 0.8% (Gross) and 0.6% (Net), compared to the MSCI EM Net TR Index return of 4.7% and the MSCI EM Growth Net TR Index return of 3.3% [1] - For the full year 2025, the portfolio achieved returns of 23.8% (Gross) and 22.8% (Net), lagging behind the indexes which returned 33.6% and 34.3% respectively [1] - The portfolio anticipates annual revenue growth of 13% and earnings growth of 16% over the next three years [1] Company Specifics - Gartner, Inc. (NYSE:IT) was highlighted in SGA's Q4 2025 investor letter, with a one-month return of -31.25% and a 52-week loss of 69.19% [2] - As of February 13, 2026, Gartner, Inc. had a stock price of $158.58 and a market capitalization of $11.17 billion [2] - SGA engaged with Gartner's Lead Independent Director and CFO regarding governance matters, including the Chairman/CEO split and executive compensation metrics [3]

Core Viewpoint - Gartner, Inc. is currently facing significant challenges in sales and contract value growth, leading to multiple price target reductions by analysts while maintaining a long-term positive outlook for the company [1][2][5]. Group 1: Price Target Adjustments - Truist Securities has lowered its price target for Gartner from $300 to $170 while keeping a Buy rating, citing weaker-than-expected fourth-quarter contract value results and muted 2026 guidance [1]. - BMO Capital has also reduced its price target from $258 to $188, maintaining a Market Perform rating, as Gartner's shares have dropped 27.47% in the past week and 71.55% over the last year [3]. Group 2: Sales Challenges - Gartner's management is experiencing a difficult selling environment for its research and advisory services, with recent changes to its Insights product offering contributing to the reduced price targets [2]. - The company faces challenges in contract value growth due to federal government customer churn and a tough sales environment, despite achieving a margin-driven earnings beat supported by share buybacks [4]. Group 3: Future Outlook - Management has outlined a four-dimensional process to reinvigorate contract value growth, although it may take a couple of years to see full benefits [5]. - Gartner's 2026 guidance is described as "at least" in line but lighter than consensus expectations, with management anticipating an acceleration in contract value growth later in the year [5]. Group 4: Company Overview - Gartner, Inc. operates globally across the United States, Canada, Europe, the Middle East, Africa, and other international markets, conducting business through three segments: Research, Conferences, and Consulting [6].

Group 1 - Baron Partners Fund achieved a return of 19.07% in Q4 2025, significantly outperforming the Russell Midcap Growth Index, which returned -3.70%, and the Russell 3000 Index, which returned 2.40% [1] - For the calendar year 2025, the Fund returned 24.86%, compared to 8.66% for the Russell Midcap Growth Index and 17.15% for the Russell 3000 Index, indicating strong long-term performance [1] - The Fund focuses on long-term investments in a non-diversified portfolio of well-managed growth businesses at attractive prices across various market caps [1] Group 2 - Gartner, Inc. (NYSE:IT) experienced a one-month return of -33.08% and a 52-week decline of 68.88%, with a market capitalization of $12.109 billion as of February 10, 2026 [2] - The decline in Gartner's contract value (CV) growth is attributed to cost-cutting measures in the U.S. public sector, which constitutes about 5% of its revenue [3] - The reduction in contract renewals is viewed as unsustainable, with expectations that many contracts will be reinstated in the coming quarters and years [3]

Financial Performance - Gartner's Q4 2025 revenue increased by 2% year over year, reaching $1.75 billion, aligning with analyst expectations [2] - Adjusted earnings for Q4 2025 fell by 28% to $3.94 per diluted share, surpassing the Street's forecast of $3.51 per share [2] Future Projections - Management anticipates 2026 sales of at least $6.46 billion, which is 0.6% lower than the full-year 2025 results [3] - Adjusted earnings are projected at $12.30 per share for 2026, representing a 6.6% decline from the $13.17 per share earned in 2025 [3] - Analyst consensus estimates for full-year 2026 earnings are approximately $13.48 per share on revenues near $6.7 billion [3] Stock Performance and Valuation - Gartner's stock has decreased by 71% over the past 52 weeks, trading at low valuation ratios of 13.8 times trailing earnings and 9.3 times free cash flow [5] - The percentage of Gartner shares on loan to short-sellers is increasing, indicating a rising trend among short-sellers despite the stock's decline [5] Market Conditions - The demand for business advice is challenging in the current economic climate, with clients having access to artificial intelligence tools [6] - Gartner needs to demonstrate its value through enhanced services amidst macroeconomic challenges, which may require time to adjust its marketing strategy [6]

Group 1: Fund Performance - Oakmark Global Fund delivered a return of 5.23% in the fourth quarter of 2025, outperforming the MSCI World Index's gain of 3.12% [1] - The fund's objective is long-term capital appreciation through investments in a diverse group of U.S. and non-U.S. companies, with an all-cap mandate allowing investment across all market-cap companies [1] Group 2: Gartner, Inc. Overview - Gartner, Inc. (NYSE:IT) is a global leader in research services, established in 1979, operating through research, conferences, and consulting segments [2][3] - The stock price of Gartner, Inc. closed at $235.79 per share on January 13, 2026, with a market capitalization of $17.86 billion [2] - Gartner, Inc. reported revenue of $1.5 billion in the third quarter of 2025, reflecting a year-over-year increase of 3% [4] Group 3: Investment Perspective on Gartner, Inc. - Oakmark Global Fund views Gartner as well-positioned to reaccelerate organic growth due to high customer engagement and opportunities to sell to new and existing customers [3] - Concerns regarding AI-related disruption affecting Gartner's stock price are considered overstated by the fund [3] - Gartner, Inc. is not among the 30 most popular stocks among hedge funds, with 42 hedge fund portfolios holding its shares at the end of the third quarter, down from 45 in the previous quarter [4]

Core Insights - Forrester forecasts that automation and AI will have a modest impact on jobs through 2030, predicting that AI could account for 6% of total US job losses, equating to 10.4 million roles [1][2] - The report emphasizes that rather than eliminating jobs, AI will augment 20% of jobs over the next five years, highlighting the need for businesses to invest in employee training and upskilling [1][2] Group 1: Job Impact and Predictions - Over-automation due to AI hype can lead to costly pullbacks and damaged reputations, with over half of layoffs attributed to AI likely to be reversed as companies face operational challenges [2][4] - AI's influence on job categories is uneven, with junior positions, software developers, and customer service representatives facing the most pressure [4] Group 2: Strategic Recommendations - Organizations should prioritize governance and invest in their workforce, treating AI as a tool to enhance human talent rather than a replacement [3][4] - To maximize AI investments, companies must focus on employee AI skill development and ethical use of AI, measuring readiness through technology change quotient and artificial intelligence quotient [4]