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Broyhill’s Q4 Letter Details 2025 Miss, Portfolio Reset, and Exits at Fiserv and Six Flags

The firm says its reshaped portfolio now trades at a discount to the broader market.

Overview

  • The fund declined 1.4% in 2025 versus a 22.9% gain for the MSCI ACWI during a year led by a narrow set of AI-linked winners.
  • Largest contributors were Philip Morris, Dollar Tree, and IQVIA, which Broyhill describes as durable businesses with mispriced catalysts.
  • Philip Morris outperformed for a second year as Zyn’s rapid growth and broader adoption of reduced‑risk products supported a rerating thesis.
  • Dollar Tree gained as tariff fears proved overblown and post–Family Dollar simplification improved execution, while IQVIA rallied as concerns over biotech funding and clinical activity eased.
  • Major detractors Avantor, Fiserv, and Six Flags shared leverage and execution issues; Broyhill sold Six Flags after weak results and a CEO departure and exited Fiserv after leadership changes led it to deem the company unanalyzable.