Investment managers report mixed 2025 results; trustees press on performance and outlook

Three investment managers who oversee sleeves of the Firefighters Pension Plan presented performance reviews to trustees on March 26 and answered questions about recent relative underperformance and outlook.

Hudson Edge (presenter Matt Witchell) said its large-cap value sleeve produced a solid quarter (about 3.6% in Q4) and that its statement of changes for 2025 showed growth from 17.9 to 19.7 (figures presented by the manager in the packet). Hudson Edge reported outperformance versus its benchmark by roughly 120 basis points net of fees for 2025 and emphasized stock selection—healthcare and select positions—drove the gain.

Lazard’s team reported that international equities and emerging markets were strong in 2025 (presenters said international was up over 30% and an emerging allocation was up roughly 40% in the year presented), and argued that valuation gaps and a recent multi-year period of low-quality dominance explain much of the prior underperformance. Lazard stressed team continuity and factor positioning as rationale for patience while markets normalize.

Wedge Capital summarized long-term net outperformance versus the benchmark since the client relationship began in 2014 and reviewed recent calendar-year results, partner retirements and product positioning. The presenter said the firm has added roughly $8 million of excess return above benchmark for the plan over the relationship and described current sector weightings and attribution drivers.

Trustees asked follow-up questions about concentration, manager continuity, and how managers intend to position portfolios across sectors given the inflation/interest-rate backdrop. Managers repeated their view that quality-oriented portfolios are likely to benefit as rates stabilize and earnings/valuation dynamics normalize.

The presentations were informational; trustees did not take new investment allocation votes at the meeting.