The London Company, a prominent investment management firm, has released its investor letter for the third quarter of 2025, highlighting a continued rally in US equities. This upward trend can be attributed to several factors, including a recent cut in interest rates by the Federal Reserve, strong corporate earnings, and growing enthusiasm surrounding artificial intelligence.
In this quarter, the small-cap portfolio managed by The London Company appreciated by 1.9% (net 1.6%), reflecting a modest performance compared to the Russell 2000 Index, which achieved a robust 12.4% gain.
Performance Insights and Key Holdings
The disparity between the small-cap portfolio’s growth and the broader market performance raises questions about sector-specific challenges and opportunities. Investors may want to delve into the fund’s top five holdings to understand the strategic selections that The London Company is banking on for 2025.
A detailed review of these holdings offers valuable insights into the company’s investment philosophy and its expectations for market dynamics moving forward. The full version of The London Company Small Cap Strategy’s Q3 2025 investor letter is available for download, providing a comprehensive overview of the portfolio’s performance and strategic direction.
As the market evolves, continued assessment of small-cap investments will be crucial for stakeholders looking to navigate the complexities of the financial landscape. The London Company’s proactive approach reflects an adaptive investment strategy in a rapidly changing economic environment.
