Mar Vista Investment Partners, LLC has issued its investor letter for the fourth quarter of 2025. The document details the performance of its U.S. Quality Strategy.
U.S. equities showed strong momentum throughout 2025, achieving double-digit gains for a second consecutive year. The market recovery from a bear territory dip in April was notably rapid. Leadership remained concentrated among mega-cap and AI-driven companies.
For the quarter, the Mar Vista U.S. Quality strategy posted a net-of-fees gain of +0.20%. 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 contributed positively. Selection in information technology, materials, and healthcare had a negative impact.
The letter states that markets in 2026 will need to balance strong fundamentals with rising economic uncertainties.
The letter highlighted Microsoft Corporation. Microsoft stock closed at $470.67 per share on January 13, 2026, giving it a market capitalization of $3.499 trillion. Its one-month return was -1.14%, while its 52-week gain was 10.41%.
Regarding Microsoft, the letter stated: "Microsoft Corporation's (NASDAQ:MSFT) stock came under pressure in Q4 as investors grew concerned about the rising cost of building AI data infrastructure to support foundation models such as OpenAI. Capital expenditures across Microsoft and its hyperscaler peers accelerated in calendar 2025 and are expected to increase again in 2026. While these investments are substantial, Microsoft is well positioned to fund this growth through its large and expanding base of operating cash flows. That said, the company does have meaningful exposure to OpenAI, which remains relatively unproven given the scale and duration of its contractual commitments."