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 Shift4 Payments, Inc. (NYSE:FOUR). Shift4 Payments, Inc. (NYSE:FOUR) provides integrated payment processing and commerce technology solutions to merchants across restaurants, hospitality, and retail verticals, enabling end-to-end transaction management. The one-month return of Shift4 Payments, Inc. (NYSE:FOUR) was -13.86% while its shares traded between $54.90 and $57.29 over the last 52 weeks. On February 13, 2026, Shift4 Payments, Inc. (NYSE:FOUR) stock closed at approximately $54.57 per share, with a market capitalization of about $4.923 billion.
Wasatch Global Investors stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its Q4 2025 investor letter:
Shift4 Payments, Inc. (NYSE:FOUR) was the largest detractor from strategy performance for the fourth quarter. A longtime holding in many of our small cap strategies, Shift4 is a U.S. company that provides payment processing solutions for hospitality, retail and e‑commerce businesses. Fundamentals for the company remain solid, in our view. But the stock was down after a competitor reported disappointing results, raising concerns for the industry. While there are concerns that consumer spending could soften and affect some of Shift4’s end markets, we still like the firm’s long-term growth potential.
