In the third quarter of 2025, the Wasatch Global Value Fund's Investor Class demonstrated a robust financial showing, recording a 6.36% increase. This performance notably outpaced its benchmark, the MSCI All Country World Value Index, which posted a 6.13% gain. The fund's success was significantly propelled by strategic investments, particularly in prominent companies like the Chinese e-commerce powerhouse, Alibaba Group. However, not all investments yielded positive results, with certain holdings, such as Centene Corp., acting as significant drags on the fund's overall returns during this period.
The strong performance of the Wasatch Global Value Fund in the third quarter of 2025 can be attributed to several factors, including its strategic allocation to high-growth sectors and specific value-driven opportunities. Alibaba Group, a multinational technology conglomerate specializing in e-commerce, retail, internet, and technology, played a crucial role as a leading contributor. Its robust growth in the digital economy and expanding market presence likely provided a substantial uplift to the fund's returns. The fund's managers appear to have successfully identified companies with solid fundamentals and strong growth trajectories, even within a dynamic global market.
Despite the overall positive results, the fund experienced headwinds from other investments. Centene Corp., a diversified healthcare enterprise that provides a spectrum of programs and services, was among the primary detractors. The underperformance of such holdings suggests that while the fund's overall strategy was effective, individual company-specific challenges or broader sector-specific pressures might have impacted some of its positions. These detractors underscore the inherent volatility and risks in investment management, where even a well-constructed portfolio can face pockets of weakness.
The fund’s outperformance relative to the MSCI All Country World Value Index indicates a successful active management strategy. This index, which tracks the performance of large and mid-cap value equities across developed and emerging markets, serves as a critical yardstick for assessing the fund's relative strength. By exceeding the index's returns, the Wasatch Global Value Fund demonstrated its ability to generate alpha, or excess returns, for its investors. This achievement reflects the fund managers' skill in stock selection and portfolio construction, navigating market conditions to identify undervalued assets with significant upside potential.
Looking ahead, the mix of strong performers and underperformers in the third quarter of 2025 provides valuable insights for the Wasatch Global Value Fund. The success with companies like Alibaba Group highlights the benefits of investing in globally relevant, innovative businesses. Simultaneously, the challenges faced with holdings such as Centene Corp. emphasize the need for continuous evaluation and potential rebalancing to mitigate risks and optimize future performance. The fund's consistent outperformance against its benchmark suggests a disciplined approach to value investing, aiming for long-term capital appreciation while managing downside risks effectively.
