Webinars [[{“value”:”Original broadcast details
Date: Thursday, January 15, 2026
Executive Summary
2025 was a good year for Lyrical in the U.S.We generated strong absolute returns of 17.9% matching the S&P 500 despite not owning Magnificent Seven stocks. Moreover, we outperformed both the S&P 500 Value and S&P 500 Equal Weight by 4.7 and 6.5 percentage points, respectively.
2025 was a great year for Lyrical outside the U.S.Lyrical International generated a 35.5% return and outperformed the MSCI EAFE by 4.3 percentage points, and the S&P 500 by 17.6 percentage points.
We are concerned about the high valuation of the S&P 500 The S&P 500 forward P/E multiple is now 22.2x, and 32% higher than the S&P 500 EW despite both constructions producing the same earnings growth over the last eleven years. We do not believe this premium is sustainable.
Lyrical performance should be driven by our uncommon combination of valuation and growthAs to valuation, in the U.S. the value spread between our portfolio and the S&P 500 is historically wide at 78%. This compares to about a 30% spread during the first decade of our firm. Regarding growth, our U.S. companies have an average historical EPS CAGR of over 10.6%, four percentage points faster than the S&P 500 growth of 6.6%.
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