Rewey Asset Management, an investment management firm, released its “RAM Smid Composite” investor letter for the fourth quarter of 2025. A copy of the letter can be downloaded here. In Q4 2025, the composite returned 3.58%, exceeding the Russell 2500 Value Total Return index’s 3.15% gain. YTD, the composite delivered a return of 13.09% vs. 12.73% for the Index. In 2025, equities experienced another solid year. This year, large-cap stocks dominated due to AI and technology, but momentum shifted late in the year. The Russell 2000 Value and Russell 2500 Value both outperformed the Nasdaq Composite and S&P 500 in 4Q25. The US economy ended the year on a strong note, recovering from Q1 2025 lows. The firm views compelling valuation in small caps, given the ongoing concerns in the large-cap technology sector. Please review the Composite’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, RAM Smid Composite stocks like highlighted Donnelley Financial Solutions, Inc. (NYSE:DFIN). Donnelley Financial Solutions, Inc. (NYSE:DFIN) is a provider compliance and regulatory software and services. On March 13, 2026, Donnelley Financial Solutions, Inc. (NYSE:DFIN) stock closed at $49.53 per share. One-month return of Donnelley Financial Solutions, Inc. (NYSE:DFIN) was 26.61%, and its shares gained 13.08% over the past 52 weeks. Donnelley Financial Solutions, Inc. (NYSE:DFIN) has a market capitalization of $1.314 billion.
RAM Smid Composite stated the following regarding Donnelley Financial Solutions, Inc. (NYSE:DFIN) in its fourth quarter 2025 investor letter:
“We initiated a position in Donnelley Financial Solutions, Inc. (NYSE:DFIN), a provider of capital markets and compliance-related technology solutions. We believe significant, but positive, changes in the business model have reduced investor visibility leading to investor neglect and undervaluation of the shares. DFIN is in the mid-stages of transitioning to a software-as-a-service model for corporate governance reporting, mergers and acquisitions filings and initial public offering registrations. While the metrics of software solutions continued to improve in 3Q25, results were obscured by one-time charges to terminate the company’s pension plan, which strengthened the balance sheet, and the 4Q25 impact of the government shutdown, which paused, but likely did not cancel, M&A and IPO activity.
