Mar Vista Investment Partners, LLC has published its investor letter for the fourth quarter of 2025. The document covers the performance of its U.S. Quality Premier Strategy.
U.S. equities showed strong momentum throughout 2025, achieving double-digit gains for the third year in a row. The market recovered quickly after entering bear territory in April. Leadership remained concentrated among mega-cap and AI-focused companies.
The strategy reported a net-of-fees return of +1.80% for the quarter. This compares to the Russell 1000 Index's +2.41% and the S&P 500 Index's +2.65%. During the fourth quarter, market participation began to broaden beyond the largest stocks to other sectors and asset classes.
The letter suggests that 2026 may differ from the previous three years. It states that markets will need to balance strong fundamentals with rising economic uncertainties next year.
Meta Platforms, Inc. was highlighted in the letter. The technology company's stock closed at $620.25 per share on January 16, 2026. Its one-month return was -6.24%, while it gained 1.22% over the past 52 weeks. Meta has a market capitalization of $1.56 trillion.
Regarding Meta, the letter stated: "Meta Platforms, Inc. continues to compound on its 13-15% growth trajectory, although the Q3 earnings report sparked a debate about the increasing cost of maintaining its competitive edge. While revenue growth remains robust, driven by a 10% rise in average ad prices and AI-powered content recommendations, investors are primarily focused on the projected 'material step up' in capital expenditures and operating expenses for 2026. This spending shift, spearheaded by infrastructure development and the 'Meta Superintelligence' team, has drawn comparisons to 2022, when aggressive spending led to market uncertainty about near-term earnings power. While we believe these investments are essential to safeguard Meta's market position, we are cautious that the narrative surrounding new AI products remains largely unproven and that the limit for infrastructure spending may not be yet reached."
Meta Platforms held the third position on a list of 30 popular stocks among hedge funds. Database figures show 273 hedge fund portfolios held the stock at the end of the third quarter of 2025, up from 260 the previous quarter. The company reported third-quarter revenue of $51.2 billion, an increase of 26% or 25% on a constant currency basis.