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iMGP World Companion, an funding administration firm, launched its fourth quarter 2025 investor letter for the “iMGP Small Firm Fund”. A duplicate of the letter might be downloaded right here. The Fund returned 1.33% within the fourth quarter in comparison with the Russell 2000 Index’s 2.19% return. The Fund’s returns have been flat at 0.01% in 2025, in comparison with a 12.81 return for the Index. In lots of respects, the market state of affairs returned to regular within the fourth quarter. The Fund’s poor efficiency within the fourth quarter was brought on by the biotech companies’ spectacular efficiency, which elevated by greater than 25%. The Fund typically avoids biotech shares because of their extraordinarily binary character. Nearly all of the 12 months’s underperformance occurred within the third quarter because of style-related elements. Shifting ahead to 2026, the Fund hoped to proceed to refine its course of and enhance its efficiency with a dedication to put money into high-quality, rising companies. Please assessment the Fund’s prime 5 holdings to achieve insights into their key picks for 2025.
In its fourth-quarter 2025 investor letter, iMGP Small Firm Fund highlighted shares like Perimeter Options, Inc. (NYSE:PRM). Perimeter Options, Inc. (NYSE:PRM) is a number one producer of firefighting merchandise, digital elements, lubricant components, and engineered equipment. On March 09, 2026, Perimeter Options, Inc. (NYSE:PRM) inventory closed at $23.82 per share. One-month return of Perimeter Options, Inc. (NYSE:PRM) was -12.62%, and its shares gained 159.76% over the previous 52 weeks. Perimeter Options, Inc. (NYSE:PRM) has a market capitalization of $3.56 billion.
iMGP Small Firm Fund said the next concerning Perimeter Options, Inc. (NYSE:PRM) in its fourth quarter 2025 investor letter:
“Perimeter Options, Inc. (NYSE:PRM) is the only provider of aerially deployed fire-retardant chemical compounds used to forestall or gradual the unfold of wildfire. The inventory outperformed in 4Q because the market continues to achieve confidence within the enterprise which, in our view, was grossly undervalued at the beginning of the 12 months. Once we initially invested in PRM in 2022, two of our most important critiques of the enterprise have been that 1) its monopoly standing was being challenged by a brand new entrant and a couple of) the enterprise was inherently unstable because of the unpredictability of wildfire exercise. In 2025, PRM’s would-be competitor shuttered its enterprise and PRM signed a brand new five-year settlement with the U.S. Division of Agriculture, locking in its place for the following a number of years. As well as, PRM’s 3Q outcomes reported in October demonstrated important progress in decreasing the volatility of the enterprise. PRM grew its hearth retardant income regardless of acres burned within the U.S. declining by -60% year-over-year. That better-than-expected end result was a operate of the federal government’s extra aggressive assault posture to suppress fires (particularly in gentle of high-profile occasions such because the Palisades hearth) in addition to PRM’s efforts to enhance the combination of recurring providers income in its contracts. The aggressive readability and improved income combine ought to enhance the a number of buyers are prepared to put on PRM’s earnings, that are rising significantly. Lastly, we have been inspired to see the corporate deploy capital to amass a considerable new enterprise platform which, given our belief in administration and their monitor file with the legacy PRM companies, we anticipate will generate robust returns for shareholders. PRM stays the biggest place within the portfolio.”
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