Core Insights - Giverny Capital Asset Management's portfolio returned 0.01% in Q4 2025, underperforming the S&P 500's 2.66% return, and YTD returns were 12.58% compared to the Index's 17.88% [1] - The firm faced challenges due to underweighting in large technology companies and overweighting in smaller niche leaders, despite strong earnings growth and capital returns from portfolio companies [1] - The market's focus on AI investments has overshadowed the actual benefits of portfolio companies, impacting overall performance [1] Company Performance - Arista Networks, Inc. (NYSE:ANET) was highlighted as a leading contributor to Giverny Capital's performance, with a one-month return of 3.32% and a 52-week gain of 27.12% [2] - As of January 30, 2026, Arista Networks' stock closed at $141.74, with a market capitalization of $178.491 billion [2] - Arista Networks has been the best-performing stock for Giverny Capital since inception, providing high-quality routers and switches for major clients like Meta Platforms and Microsoft [3] Market Sentiment - Despite strong revenue growth of 27.5% year-over-year to $2.3 billion in Q3 2025, Arista Networks is not among the top 30 most popular stocks among hedge funds, with 92 hedge fund portfolios holding the stock at the end of Q3 [4] - There is a belief that certain AI stocks may offer greater upside potential and less downside risk compared to Arista Networks, despite its strong fundamentals [4]