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]