FMI Global Equity Commentary: Navigating the Currents of Q3 2025

Well, another quarter has certainly flown by, hasn't it? As we wrap up Q3 2025, the global equity markets have once again presented us with a fascinating, albeit at times challenging, mosaic of trends and opportunities. It’s never a dull moment, that’s for sure, and this past quarter was no exception. Our team at FMI Global Equity has been diligently observing, analyzing, and, most importantly, acting with our long-term investment philosophy firmly in mind.

You see, Q3 2025 really felt like a period where underlying economic resilience continued to bump up against lingering macroeconomic uncertainties. We witnessed, for instance, a persistent dance between inflation anxieties and the surprising robustness of corporate earnings in several key sectors. Central banks, as anticipated, remained quite deliberate in their rhetoric, keeping investors on their toes, especially regarding future rate trajectories. Meanwhile, geopolitical currents, ever-present, added their own layer of complexity to the global stage, reminding us all of the importance of diversification and thoughtful risk management.

Through it all, our commitment to identifying high-quality businesses – those with strong competitive advantages, robust balance sheets, and management teams focused on long-term value creation – remained absolutely steadfast. We truly believe that in markets characterized by swift shifts and sometimes fleeting enthusiasms, anchoring ourselves to these fundamental principles is paramount. It’s about cutting through the noise, you know, and really focusing on what makes a company truly enduring.

Looking at our portfolio’s journey through Q3, it was a period of strategic refinement rather than drastic overhauls. We continued to find compelling value in companies that, perhaps, were temporarily out of favor with the broader market but possessed undeniable intrinsic worth. For instance, we bolstered positions in certain industrial technology innovators whose long-term growth runways, fueled by automation and efficiency demands, appear incredibly attractive despite some near-term cyclical headwinds. Conversely, we prudently trimmed back on a few positions where valuations, in our estimation, had perhaps run a little too far ahead of their underlying fundamentals, always keeping an eye on maintaining a balanced risk-reward profile.

Of course, it wasn't without its challenges. Specific supply chain kinks re-emerged in niche manufacturing areas, and certain commodity price fluctuations created a bit of volatility in sectors sensitive to input costs. But these are precisely the environments where our bottom-up research and deep fundamental analysis truly shine, allowing us to distinguish between temporary blips and more systemic issues. Our team spent considerable time engaging directly with company management, digging into their strategies for navigating these very real-world pressures.

As we peer into Q4 and beyond, the global landscape remains, as ever, a tapestry of challenges and intriguing possibilities. We anticipate continued vigilance from central banks, and the pace of technological innovation, particularly in areas like AI and sustainable energy solutions, will undoubtedly continue to shape market narratives. Rest assured, the FMI Global Equity team is already deep into our research, seeking out those exceptional businesses that we believe are best positioned to thrive, regardless of the prevailing winds. We’re excited for what the future holds, maintaining our disciplined, long-term perspective every step of the way.