Mar Vista Investment Partners, LLC has published its fourth-quarter 2025 investor letter for the Mar Vista U.S. Quality Strategy. The document is available for download.
U.S. equities showed strong momentum in 2025, achieving double-digit gains for a second consecutive year. The market recovered rapidly after entering bear territory in April. Leadership remained concentrated among mega-cap and AI-driven companies.
During the fourth 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 sectors contributed positively to performance. 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.
In the letter, Mar Vista U.S. Quality Strategy highlighted Netflix, Inc. (NASDAQ:NFLX). Netflix is a leading entertainment services provider founded in 1997. Its one-month return was -4.72%, while its shares gained 6.48% over the past 52 weeks. On January 13, 2026, Netflix stock closed at $90.32 per share, giving it a market capitalization of $382.715 billion.
Regarding Netflix, the letter stated: "Netflix, Inc. (NASDAQ:NFLX) has built a durable economic moat around its vertically-integrated, globally-scaled streaming business. As the first company to establish a global subscription media platform within the $500 billion TV market, Netflix is now reaping the benefits of its early leadership. Its march toward global dominance has been propelled by substantial investments in both technology and content. The broader media industry, meanwhile, is undergoing a structural transformation driven by technology, as the traditional TV bundle fades and legacy media companies scramble to replicate Netflix’s success. However, without global scale, the escalating costs of competing in the content wars are unsustainable. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry, an advantage that enables it to profitably outspend rivals and accelerate its competitive flywheel. We expect this edge to continue compounding over time."