Market Overview - US equities showed strong momentum in 2025, achieving double-digit gains for the second consecutive year, with a rapid recovery from a bear market dip in April [1] - Market leadership has narrowed, with Mega-cap stocks and AI-driven companies dominating the landscape [1] Mar Vista U.S. Quality Strategy Performance - The Mar Vista U.S. Quality strategy reported a net-of-fees gain of +0.20% in Q4 2025, compared to the Russell 1000® Index's +2.41% and the S&P 500® Index's +2.65% [1] - Favorable stock selection in communication services, consumer discretionary, and financials contributed positively to performance, while information technology, materials, and healthcare detracted from it [1] Economic Outlook - In 2026, markets will need to balance strong fundamentals with increasing economic uncertainties [1] Microsoft Corporation Analysis - Microsoft Corporation (NASDAQ:MSFT) had a one-month return of -1.14% and a 52-week gain of 10.41%, closing at $470.67 per share on January 13, 2026, with a market capitalization of $3.499 trillion [2] - The stock faced pressure in Q4 2025 due to concerns over rising costs for AI data infrastructure, with capital expenditures expected to increase in 2026 [3] - Microsoft is well-positioned to fund its growth through a large base of operating cash flows, despite having meaningful exposure to OpenAI, which remains relatively unproven [3]

Core Viewpoint - Microsoft Corporation (NASDAQ:MSFT) is recognized as a leading software infrastructure stock by hedge funds, with recent price target adjustments reflecting ongoing confidence in its growth potential driven by AI integration [1][3]. Group 1: Analyst Ratings and Price Targets - Wells Fargo has reduced its price target for Microsoft from $700 to $665 while maintaining an Outperform rating, indicating a positive outlook despite the adjustment [1]. - Jefferies analyst Brent Thill reiterated a Buy rating with a price target of $675, emphasizing Microsoft's AI integration as a significant growth driver [3]. Group 2: AI Landscape and Market Trends - Wells Fargo's software-sector update for 2026 highlights AI as a critical focus area, suggesting that investors can find opportunities in infrastructure providers, established companies, and innovation-driven platforms [2]. - The firm anticipates variability in AI adoption trends but believes that fundamental drivers will support performance through 2026 [2]. Group 3: Company Overview - Microsoft develops and sells a diverse range of software, cloud services, devices, and business solutions, catering to both individual users and enterprise customers globally [4].

Group 1 - Advanced Biomed Inc. has entered into an agreement to sell 100% of its Hong Kong subsidiary for a total purchase price of US$23,000 based on a valuation report [1] - The transaction includes the transfer of all intellectual property owned by the Hong Kong subsidiary, including that of its wholly owned subsidiary, Shanghai Sglcell Biotech Co., Ltd. [2] - The CEO of Advanced Biomed stated that the divestment is part of a strategic realignment to centralize clinical trials in Taiwan due to evolving regulatory requirements in China [3] Group 2 - The company operates through its Taiwan subsidiary, which has developed a proprietary microfluidic platform for advanced circulating tumor cell detection and analysis [4] - The product portfolio includes devices and biochips designed for cancer screening, diagnosis, treatment selection, and prognosis assessment, with regulatory clearances in progress in Taiwan and plans for global expansion [4]

Core Insights - Harbor Capital Appreciation Fund reported a return of 5.11% in Q3 2025, underperforming compared to the Russell 1000® Growth Index at 10.51% and the S&P 500 Index at 8.12% [1] - The fund primarily invests in U.S. companies with a market capitalization of at least $1 billion, focusing on equity securities [1] Fund Performance - U.S. equities showed strong performance in Q3 2025, driven by AI momentum and robust corporate earnings, with support from the Federal Reserve's interest rate cut [1] - The fund's top five holdings were highlighted as key investment picks for 2025 [1] Microsoft Corporation (NASDAQ:MSFT) - Microsoft Corporation's stock gained 11.08% over the last 52 weeks, closing at $488.02 per share with a market capitalization of $3.628 trillion on December 24, 2025 [2] - Concerns regarding Microsoft's relationship with OpenAI, particularly after the Oracle/OpenAI deal announcement, led to underperformance of its shares [3] - The fund's underweight position in Microsoft relative to the index positively contributed to its relative returns [3] - Microsoft reported revenue of $77.7 billion in Q1 FY 2026, reflecting an 18% increase, or 17% when adjusted for constant currency [3] - The fund suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Microsoft [3]

Core Insights - November is traditionally a strong month for the stock market, and the artificial intelligence (AI) sector is projected to grow rapidly, reaching a market size of US$1.68 trillion by 2031, with a CAGR of 36.89% from this year [1] Group 1: AI Sector Growth - The AI sector is experiencing significant growth, making it a focal point for investors looking for opportunities in AI-driven stocks [1] - Companies like QUALCOMM, Microsoft, and Meta Platforms are highlighted as momentum picks for November, benefiting from the sector's growth [2][9] Group 2: Driehaus Investment Strategy - The Driehaus strategy, known as "buy high and sell higher," emphasizes investing in stocks that are increasing in price rather than those in decline [3] - Key criteria for this strategy include strong earnings growth rates, impressive earnings projections, and a history of beating estimates [5] Group 3: Screening Parameters - Stocks are screened based on Zacks Rank (1-3) and Momentum Score (A or B), which have shown to provide the best upside potential [6][7] - Specific parameters include last 5-year average EPS growth rates above 2%, trailing 12-month EPS growth greater than 0, and positive percentage change in the 50-day moving average [8][10] Group 4: Selected Stocks - QUALCOMM (QCOM) has a Zacks Rank of 3 and a Momentum Score of A, with an average trailing four-quarter earnings surprise of 6.2% [10] - Microsoft (MSFT) holds a Zacks Rank of 3 and a Momentum Score of B, with an average trailing four-quarter earnings surprise of 8.5% [11] - Meta Platforms (META) has a Zacks Rank of 2 and a Momentum Score of B, with an average trailing four-quarter earnings surprise of 18.9% [12]

Core Insights - Wedgewood Partners' third-quarter 2025 investor letter indicates that AI stocks continue to dominate Wall Street's interest, with the Wedgewood Composite achieving a net return of 5.9%, underperforming compared to the S&P's 8.1% and the Russell 1000 Growth Index's 10.5% [1] Company Summary: Microsoft Corporation (NASDAQ:MSFT) - Microsoft Corporation reported a one-month return of 1.47% and a 52-week gain of 21.92%, with its stock closing at $517.66 on October 21, 2025, and a market capitalization of $3.848 trillion [2] - The company has invested heavily in capital expenditures, adding over 2 gigawatts of data center capacity in the past year, resulting in gross property, plant, and equipment, and capitalized leases reaching nearly $370 billion, an increase of $260 billion since fiscal 2020 [3] - Gross cash flow has risen from $60 billion in 2020 to over $140 billion in 2025, indicating a consistent return on capital in the high 20s, which is considered an attractive return given the scale of investment [3] Market Position - Microsoft ranks second among the 30 Most Popular Stocks Among Hedge Funds, with 294 hedge fund portfolios holding its stock at the end of Q2 2025, up from 284 in the previous quarter [4] - In Q4 of fiscal year 2025, Microsoft reported revenue of $76.4 billion, marking an 18% increase, or 17% when adjusted for constant currency [4]

Core Insights - LeMaitre Vascular, Inc. will release its Q3 2025 financial results on November 6, 2025, after market close [1] - A conference call is scheduled for the same day at 5:00 PM EST to discuss the results and company outlook [1] Company Overview - LeMaitre Vascular is a provider of devices, implants, and services for treating peripheral vascular disease, which affects over 200 million people globally [3] - The company develops, manufactures, and markets disposable and implantable vascular devices aimed at vascular surgeons [3]

Market Overview - Diamond Hill Capital reported a rebound in markets after a downturn in early April, with the Russell 3000 Index showing an approximate increase of 11% [1] - Large-cap stocks experienced the highest growth, rising just over 11%, while small-cap and mid-cap stocks gained around 8.5% each [1] - The Select Strategy portfolio returned 7.31% (net) for the quarter, underperforming compared to the Russell 3000 Index's return of 10.99% [1] Company Focus: Coherent Corp. (NYSE:COHR) - Coherent Corp. is highlighted as a significant contributor to the portfolio, benefiting from increased demand for optical transceivers in data centers [3] - The stock of Coherent Corp. saw a one-month return of 22.97% and a 52-week gain of 21.59%, closing at $107.97 per share with a market capitalization of $16.822 billion on September 29, 2025 [2] - Coherent Corp. was held by 66 hedge fund portfolios at the end of Q2 2025, an increase from 61 in the previous quarter [3] Investment Insights - While Coherent Corp. is recognized for its potential, the company suggests that certain AI stocks may offer greater upside potential with less downside risk [3] - The investor letter indicates a focus on undervalued AI stocks that could benefit from Trump-era tariffs and the trend of onshoring [3]

Group 1: Market Overview - The market experienced volatility at the start of Q2 2025 due to heightened uncertainty from global tariffs, but later rebounded with a more lenient trade policy [1] - The composite returned 25.11% gross of fees and 24.85% net of fees in Q2 2025, outperforming the S&P Global 1200 Information Technology Index's return of 23.66% [1] Group 2: Microsoft Corporation Performance - Microsoft Corporation (NASDAQ:MSFT) reported a one-month return of 2.47% and a 52-week gain of 19.87%, with a stock price of $514.45 and a market capitalization of $3.824 trillion as of September 22, 2025 [2] - Microsoft’s quarterly results surprised to the upside, with shares surging over 30% during the period, driven by AI improvements and a strong partnership with OpenAI [3] - In Q4 FY 2025, Microsoft reported revenue of $76.4 billion, representing an 18% increase, or 17% when adjusted for constant currency [4] Group 3: Investment Sentiment - Microsoft is the second most popular stock among hedge funds, with 294 hedge fund portfolios holding the stock at the end of Q2 2025, up from 284 in the previous quarter [4] - Despite the positive outlook for Microsoft, there are suggestions that certain AI stocks may offer greater upside potential and carry less downside risk [4]

Company Overview - LeMaitre Vascular, Inc. is a provider of devices, implants, and services for the treatment of peripheral vascular disease, which affects over 200 million people globally [3] - The company develops, manufactures, and markets both disposable and implantable vascular devices aimed at vascular surgeons [3] Financial Results Announcement - LeMaitre Vascular will release its second quarter 2025 financial results on August 5, 2025, after market close [1] - A conference call is scheduled for 5:00 PM EDT on the same day to discuss the financial results, business highlights, and company outlook [1] Access to Conference Call - Access to the live conference call requires online registration, after which registrants will receive dial-in information and a PIN [2] - The audio webcast will be available live and for replay through the company's investor relations website [2]