Palm Valley Capital Management, an investment management firm, has released the “Palm Valley Capital Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Palm Valley Capital Fund appreciated 0.66% compared to a 1.70% gain for the S&P SmallCap 600 and a 3.12% rise in the Morningstar Small Cap Total Return Index. At the beginning of the quarter, the Fund allocated 74.1% to Treasury bills and increased to 76.3% by the end of the quarter. The equity holdings of the Fund rose by 1.12% over the past three months (excluding the effects of fund operating expenses). The performance of equities was positively influenced by the investments in precious metals, particularly as silver has been the Fund’s largest allocation for the past few years. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as Forrester Research, Inc. (NASDAQ:FORR). Forrester Research, Inc. (NASDAQ:FORR) is an independent research and advisory company. The one-month return of Forrester Research, Inc. (NASDAQ:FORR) was 14.47%, and its shares lost 44.86% of their value over the last 52 weeks. On January 5, 2026, Forrester Research, Inc. (NASDAQ:FORR) stock closed at $8.15 per share, with a market capitalization of $155.526 million.
Palm Valley Capital Fund stated the following regarding Forrester Research, Inc. (NASDAQ:FORR) in its fourth quarter 2025 investor letter:
“We sold Forrester Research, Inc. (NASDAQ:FORR) in Q4. Typically, our sales occur when share prices reach our valuations. Occasionally, we will sell stocks at a loss when we can no longer value them with a high degree of confidence. When we purchased Forrester Research in early 2025, we saw it as a distant number two in providing advice to business leaders about how technology impacts their companies. Forrester achieved peak earnings during the pandemic as firms transitioned to work from home environments, leaning heavily on Forrester to help guide their digital shifts. We concluded that the company’s revenue challenges in the last couple of years were mostly self inflicted, since larger peer Gartner continued to grow at impressive rates. Two things changed.
