Greystone Capital Management, an investment management company, recently released its fourth-quarter 2025 investor letter, detailing the performance of its separate accounts and overall Fund. The Median Account return for separate accounts managed by the firm in the fourth quarter was +0.3%, bringing the full year net returns to +2.8%. Since its inception in Q4 2019, the Fund has returned a cumulative +197.7% or +21.9% per year, net of fees. While the results for the fourth quarter and full year of 2025 lagged behind the S&P 500 and Russell 2000 returns, Greystone Capital Management maintains a long-term approach to investing and views tracking error as a feature rather than a flaw.
The firm cited poor stock selection, valuation compression of strong performers from 2024, and a lack of AI-themed investments as reasons for its underperformance in 2025. Despite this, Greystone Capital Management remains confident in its concentrated, differentiated strategy and expects divergence from major indices.
In the investor letter, Greystone Capital Management highlighted APi Group Corporation (NYSE:APG) as a noteworthy investment. APi Group Corporation is a safety and specialty services provider that has shown impressive growth in the past year. The one-month return of APi Group Corporation was 9.57%, and its shares gained 64.69% of their value over the last 52 weeks. As of January 28, 2026, APi Group Corporation stock closed at $41.92 per share, with a market capitalization of $18.073 billion.
According to Greystone Capital Management, APi Group Corporation continues to execute as a steady, high-quality business operating in mission-critical fire and life-safety services. The company experienced mid-single-digit organic growth, disciplined pricing, expanding margins, and robust cash generation in 2025. APi Group Corporation has been shifting its revenue mix towards recurring inspection, monitoring, and service work, which carry higher margins and lower working capital intensity.
While APi Group Corporation is not on the list of 30 Most Popular Stocks Among Hedge Funds, 58 hedge fund portfolios held the stock at the end of the third quarter, up from 53 in the previous quarter. The company reported revenues of $2.1 billion for the September quarter, marking a 14.2% rise from the same period last year.
In conclusion, Greystone Capital Management’s investor letter highlights the firm’s long-term approach to investing, its confidence in its concentrated strategy, and the potential of APi Group Corporation as a solid investment. Despite underperformance in 2025, the firm remains optimistic about the future prospects of its investments.
