Core Insights - iMGP Small Company Fund returned 1.33% in Q4 2025, underperforming the Russell 2000 Index which returned 2.19% [1] - The Fund's overall return for 2025 was flat at 0.01%, compared to a 12.81% return for the Index [1] - The Fund's underperformance was attributed to the strong performance of biotech stocks, which increased by over 25%, a sector the Fund generally avoids [1] - The Fund aims to refine its investment process and focus on high-quality, growing firms moving into 2026 [1] Company Focus: RBC Bearings Incorporated - RBC Bearings Incorporated (NYSE:RBC) is a market leader in manufacturing engineered precision bearings for aerospace, defense, and industrial markets [2][3] - As of March 6, 2026, RBC's stock closed at $552.91, with a one-month return of -17.20% and a 12-month increase of 57.42% [2] - RBC has a market capitalization of $17.21 billion [2] - In Q4 2025, RBC's quarterly results exceeded consensus estimates for both revenue and EPS, particularly strong in its Aerospace and Defense segment, which accounts for 44% of total revenue [3] - Management anticipates strong growth in its Aerospace and Defense backlog and is expanding capacity to meet demand [3] - The Industrial segment, making up 56% of total revenue, has seen sluggish growth, but profit margins have improved significantly, with growth initiatives underway [3] - The Fund expresses confidence in RBC's leadership, strategic approach, and growth opportunities [3]

Company Overview - RBC Bearings Incorporated (NYSE:RBC) develops and sells engineered precision bearings, components, and essential systems, operating through Aerospace/Defense and Industrial segments. The company offers various types of bearings, including journal, roller, and spherical plain bearings, and specializes in plain bearings with metal-to-metal or self-lubricating designs [3]. Analyst Ratings and Price Targets - On January 9, Michael Ciarmoli from Truist Financial raised his price target for RBC Bearings from $471 to $542 and reaffirmed his buy rating, citing a positive outlook for the Aerospace & Defense industry in 2026 driven by increased aircraft manufacturing and sustained aftermarket demand [1]. - KeyBanc analyst Steve Barger also raised his price target on RBC Bearings from $475 to $535 and assigned an Overweight rating, based on expectations of elevated revenues, improved margins, and a modestly lower tax bill [2]. Industry Outlook - The Aerospace & Defense industry is expected to maintain a positive outlook due to strong performance in the previous year, with demand supported by recapitalization, geopolitical developments, and replenishment needs, despite fewer catalysts for growth [1].