iMGP Global Partner, an investment management company, released its fourth quarter 2025 investor letter for the "iMGP Small Company Fund”. A copy of the letter can be downloaded here. The Fund returned 1.33% in the fourth quarter compared to the Russell 2000 Index’s 2.19% return. The Fund’s returns were flat at 0.01% in 2025, compared to a 12.81 return for the Index. In many respects, the market situation returned to normal in the fourth quarter. The Fund's poor performance in the fourth quarter was caused by the biotech businesses' impressive performance, which increased by more than 25%. The Fund generally avoids biotech stocks due to their extremely binary character. The majority of the year's underperformance happened in the third quarter due to style-related factors. Moving forward to 2026, the Fund hoped to continue to refine its process and improve its performance with a commitment to invest in high-quality, growing firms. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, iMGP Small Company Fund highlighted stocks like RBC Bearings Incorporated (NYSE:RBC). RBC Bearings Incorporated (NYSE:RBC) is an industrial company that focuses on manufacturing and marketing engineered precision bearings, components, and systems for aerospace, defense, and industrial markets. On March 06, 2026, RBC Bearings Incorporated (NYSE:RBC) stock closed at $552.91 per share. One-month return of RBC Bearings Incorporated (NYSE:RBC) was -17.20%, and its shares are up 57.42% over the past twelve months. RBC Bearings Incorporated (NYSE:RBC) has a market capitalization of $17.21 billion.

iMGP Small Company Fund stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its fourth quarter 2025 investor letter:

"RBC Bearings Incorporated (NYSE:RBC) manufactures engineered precision bearings and related products for customers in the aerospace, defense, and industrial markets. It is a market leader with a strong reputation for technical capabilities, product quality, and on-time delivery. RBC outperformed in 4Q as its quarterly results beat consensus estimates on both revenue and EPS. Its Aerospace and Defense business (A&D, 44% of total revenue) was particularly strong, essentially “firing on all cylinders.” Management expects strong growth in its A&D backlog and is in the process of adding capacity to meet demand. Growth in its Industrial business (56% of total revenue) remains sluggish, but management has significantly improved the profit margins of this business and is now in the process of implementing growth initiatives. We continue to like RBC’s leadership team, well-established strategic playbook, as well as its opportunities for growth and capital deployment."

RBC Bearings Incorporated (NYSE:RBC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 38 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the fourth quarter, up from 30 in the previous quarter. While we acknowledge the potential of RBC Bearings Incorporated (NYSE:RBC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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.

In another article, we covered RBC Bearings Incorporated (NYSE:RBC) and shared Conestoga Capital Advisors' views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.