Mar Vista Investment Partners, LLC has issued its investor letter for the fourth quarter of 2025. The document covers the performance of the firm's U.S. Quality Strategy.
U.S. equities showed strong momentum throughout 2025, recording a second consecutive year of double-digit gains. The market recovery following an April dip was among the fastest observed. Market leadership narrowed, with mega-cap and AI-driven companies dominating.
The Mar Vista U.S. Quality Strategy reported a net-of-fees gain of +0.20% for the quarter. This compares to a +2.41% return for the Russell 1000 Index and a +2.65% return for the S&P 500 Index. Stock selection in communication services, consumer discretionary, and financials sectors contributed positively to results. Selection in information technology, materials, and healthcare sectors had a negative impact.
The letter states that markets in 2026 will need to balance strong fundamentals with rising economic uncertainties.
The letter highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). The company manufactures, packages, tests, and sells integrated circuits and other semiconductor devices. Its one-month return was 19.59%, and shares gained 60.16% over the past 52 weeks. On January 13, 2026, TSM stock closed at $331.21 per share, giving it a market capitalization of $1.72 trillion.
Regarding Taiwan Semiconductor, the letter stated: "Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the dominant manufacturer of semiconductors for the world’s leading fabless chip designers including NVIDIA, Apple, Broadcom, and others. TSM is the world’s preeminent semiconductor foundry due to its leadership position in producing the most advanced chips that power the world’s most sophisticated supercomputers, personal computers, and mobile devices. It is also one of only two manufacturers that operates at the leading edge of semiconductor process technology. This technological leadership, reinforced by scale economies, proprietary process know-how, and decades of accumulated manufacturing expertise, creates a formidable competitive moat that is increasingly difficult for other foundries to replicate. As a result, TSM earns structurally higher gross margins than its peers through a combination of technology-driven pricing power and superior manufacturing efficiency."
Taiwan Semiconductor Manufacturing Company was in 9th position on a list of 30 Most Popular Stocks Among Hedge Funds. Database records show 194 hedge fund portfolios held the stock at the end of the third quarter, up from 187 in the prior quarter. The company's revenue increased 6% sequentially in NT during the third quarter of 2025.