Apple (AAPL) Continued to Rebound in Q4

Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Premier Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities experienced strong momentum in 2025 and marked their third consecutive year of double-digit gains. The market witnessed one of the fastest recoveries following its dip into bear territory in April. Market leadership continued to narrow as mega-cap stocks and AI-driven companies dominated the landscape. Against this backdrop, The Mar Vista U.S. Quality Premier Strategy returned +1.80% net-of-fees gains in Q4 2025 vs. the Russell 1000® Index’s +2.41% return and the S&P 500® Index’s +2.65% return. Gradual changes started to surface in the fourth quarter as market participation expanded beyond mega-caps to other sectors and asset classes. So, 2026 may be different from the past three years. The letter also shared that, in 2026, markets will need to strike a balance between strong fundamentals and increasing economic uncertainties. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Mar Vista U.S. Quality Premier Strategy highlighted stocks such as Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was -5.70%, and its shares gained 11.11% of their value over the last 52 weeks. On January 16, 2026, Apple Inc. (NASDAQ:AAPL) stock closed at $255.52 per share, with a market capitalization of $3.76 trillion.

Mar Vista U.S. Quality Premier Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2025 investor letter:

"Apple Inc. (NASDAQ:AAPL) shares continued to rebound in calendar Q4 2025 as investor concerns waned around tariffs and the lack of traction with Apple Intelligence, its new generative AI offering, and investor attention shifted to strong demand for Apple’s iPhone and Services offerings. Calendar Q3 results exceeded street expectations and calendar Q4 guidance calls for low double-digit top-line growth as strong demand for the new iPhone 17 series phones, a rebound in China, and sustained services demand drive top-line growth and resilient margins.

We continue to view Apple as a competitively advantaged business, anchored by the strength of its ecosystem. With over 2 billion active devices and more than 1 billion paying subscribers, Apple benefits from a loyal customer base and a growing stream of high-margin, recurring services revenue. This stable cash flow enables continued investment in innovation, even during periods of cyclical softness. We believe Apple remains well positioned to lead in the emerging category of AI-enabled edge devices."

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the third quarter, which was 156 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $102.5 billion in the September quarter, reflecting an 8% year-over-year increase. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) 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 Apple Inc. (NASDAQ:AAPL) and shared Wedgewood Partners' 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.