Wasatch Global Investors, an asset management company, released its “Small Cap Growth Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. The Wasatch Small Cap Growth Strategy experienced a challenging fourth quarter as small-cap equities lagged broader market indices, reflecting investor caution and a continued preference for larger, more liquid stocks. During the period, the Russell 2000® Growth Index gained 1.22%, while the strategy finished the quarter in negative territory, with performance driven by stock-specific factors rather than macroeconomic stress. Results contrasted with strength in select areas of the small-cap market, as biotechnology emerged as one of the strongest segments, with the biotech component of the Russell 2000® Growth Index rising nearly 27%. For the 2025 calendar year, the Russell 2000 Growth Index advanced 13.01%, while the strategy posted a loss, highlighting the impact of earnings volatility and valuation compression across several holdings despite management citing improving fundamentals and easing financial conditions as potential longer-term supports. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Wasatch Global Investors highlighted stocks like Fabrinet (NYSE:FN). Fabrinet (NYSE:FN) provides advanced optical and electronic manufacturing services, serving communications, automotive, and industrial customers with complex, precision-engineered products. The one-month return of Fabrinet (NYSE:FN) was -0.90% while its shares traded between $464.00 and $504.03 over the last 52 weeks. On February 13, 2026, Fabrinet (NYSE:FN) stock closed at approximately $462.05 per share, with a market capitalization of about $17.555 billion.
Wasatch Global Investors stated the following regarding Fabrinet (NYSE:FN) in its Q4 2025 investor letter:
“Fabrinet (NYSE:FN) was also a significant contributor. Fabrinet is a contract manufacturer of laser-based communication hardware. The company’s optical transceivers are noted for their ability to maintain precise thermal control and alignment of internal components during high-speed transmission of data. Fabrinet is seeing increased demand as data centers upgrade their networks to faster and lower-latency communication standards capable of handling complex AI workloads. Favorable trends in telecommunications end markets have added to investor optimism.”
Fabrinet (NYSE:FN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held Fabrinet (NYSE:FN) at the end of the third quarter, up from 32 in the previous quarter. While we acknowledge the risk and potential of Fabrinet (NYSE:FN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
