Weitz Multi-Cap Fund Reports Q4 Loss Amid Rising AI Market Interest

NEW YORK, NY — Weitz Multi-Cap Equity Fund released its fourth-quarter investor letter for 2024, showcasing a 15.80% return for its Institutional Class over the past year, which trails the Russell 3000’s return of 23.81%.

In the fourth quarter alone, the fund reported a loss of 0.57%, contrasting the index’s gain of 2.63%. The fund employs an all-cap strategy, aiming to invest in companies of various sizes to broaden investment opportunities and mitigate risks associated with shifting market leadership.

The report highlighted significant positions in Sirius XM Holdings Inc. (NASDAQ: SIRI), an audio entertainment company encompassing Sirius XM, Pandora, and Off-platform segments. With its stock price closing at $23.92 per share and a market capitalization of $8.1 billion on February 27, 2025, Sirius XM faced challenges, including a 0.37% dip over the past month and a staggering 43.98% drop over the last year.

In the Q4 investor letter, Weitz stated, “Sirius XM Holdings Inc. and its predecessor, Liberty SiriusXM, were among the year’s most notable detractors. Although the merger between SiriusXM and Liberty was seen as a positive move, it resulted in an increased debt load. However, management has outlined plans to tackle debt through significant savings, starting in 2025.” The fund indicated an increase in its holdings of Sirius XM post-merger.

As of the fourth quarter, 44 hedge fund portfolios included Sirius XM, down from 49 in the previous quarter. Weitz acknowledged the company’s potential but emphasized a stronger conviction in artificial intelligence stocks as the future of investment opportunities.

Sirius XM was not included in Weitz’s top recommended stocks for 2024. In an apparent pivot towards emerging technologies, Weitz pointed to AI stocks as exhibiting greater potential for returns compared to traditional companies.

With the current AI explosion and a predicted $500 billion investment by President Trump into AI infrastructure, Weitz forecasts a significant surge in demand for essential materials like copper, which is crucial for establishing data centers.

Goldman Sachs analysts estimate AI could generate an additional 1 million metric tons of copper demand annually by 2030. As copper supplies dwindle due to a lack of new mines coming online, prices are expected to reach new heights.

The timing of investments in sectors such as AI and the implications on related commodities like copper underscores a shifting landscape in investment strategies, further complicating portfolios amidst broader market uncertainties.