The London Company, an investment management company, released its fourth-quarter 2025 investor letter for its “The London Company Mid Cap Strategy”. A copy of the letter can be downloaded here. In Q4 2025, US equities posted the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. In the quarter, the portfolio returned 3.2% (3.0% net) compared to a 0.2% increase in the Russell Midcap Index. Both stock selection and sector exposure contributed to the relative performance of the portfolio in the quarter. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, London Company Mid Cap Strategy highlighted stocks like Pool Corporation (NASDAQ:POOL). Pool Corporation (NASDAQ:POOL) is a leading distributor of swimming pool supplies, equipment, related leisure, irrigation, and landscape maintenance products. On February 24, 2026, Pool Corporation (NASDAQ:POOL) stock closed at $217.26 per share. One-month return of Pool Corporation (NASDAQ:POOL) was -15.95%, and its shares fell 37.52% over the past 52 weeks. Pool Corporation (NASDAQ:POOL) has a market capitalization of $8.108 billion.
London Company Mid Cap Strategy stated the following regarding Pool Corporation (NASDAQ:POOL) in its fourth quarter 2025 investor letter:
“Pool Corporation (NASDAQ:POOL) – POOL traded lower after a largely uneventful earnings update with staple guidance, but investors are cautious around discretionary home improvement spending, which weighed on shares. With new pool construction stabilizing, building materials returning to growth, and pricing remaining a tailwind, we believe the business is operating near trough margins and is well positioned to benefit as end-market conditions normalize.”
Pool Corporation (NASDAQ:POOL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the fourth quarter, up from 41 in the previous quarter. In Q4 2025, Pool Corporation’s (NASDAQ:POOL) total sales amounted to $982 million, just 1% below last year’s level. While we acknowledge the potential of Pool Corporation (NASDAQ:POOL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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