Company Overview - FirstService Corporation (NASDAQ:FSV) is a leading provider of essential property services to residential and commercial customers in North America [3] - The company has a market capitalization of $7.182 billion [2] Financial Performance - In Q4 2025, FirstService Corporation's stock closed at $156.86 per share, with a one-month return of -1.90% and a 52-week loss of 10.27% [2] - The company reported third-quarter revenues that fell short of consensus expectations, although it met earnings per share estimates [3] Investment Sentiment - FirstService Corporation was held by 25 hedge fund portfolios at the end of Q3 2025, a decrease from 27 in the previous quarter [4] - Despite acknowledging the potential of FirstService Corporation as an investment, the company is viewed as having less upside compared to certain AI stocks [4]

Core Insights - Fenimore Asset Management's Q4 2025 investor letter indicates a solid yet volatile stock market, influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Market Performance - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined by -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy saw a decline of -1.17% against the Russell Midcap Index's 0.16% return [1] Company-Specific Insights - FirstService Corporation (NASDAQ:FSV) was a significant performance detractor in the Fenimore Small Cap Strategy during Q4 2025 [2][3] - FSV's stock closed at $163.13 on January 15, 2026, with a one-month return of 5.46% and a 52-week loss of 10.55% [2] - FSV has a market capitalization of $7.469 billion [2] - The company faced slower-than-expected results due to weather-related issues in its restoration business tied to roofing [3] - Fenimore believes FSV has multiple avenues for reinvestment and that its management can generate long-term shareholder value [3]