The London Company, an investment management company, released “The London Company Large Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The economy retained most of its momentum from the second quarter, even though the economic data released during the third quarter was mixed. The portfolio returned 6.3% (6.2%, net) during the quarter compared to an 8.0% gain for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks such as Equitable Holdings, Inc. (NYSE:EQH). Equitable Holdings, Inc. (NYSE:EQH) is a leading diversified financial services company. The one-month return of Equitable Holdings, Inc. (NYSE:EQH) was -4.28%, and its shares gained 9.67% of their value over the last 52 weeks. On November 3, 2025, Equitable Holdings, Inc. (NYSE:EQH) stock closed at $48.79 per share, with a market capitalization of $14.614 billion.
The London Company Large Cap Strategy stated the following regarding Equitable Holdings, Inc. (NYSE:EQH) in its third quarter 2025 investor letter:
“Initiated: Equitable Holdings, Inc. (NYSE:EQH) – EQH a leading U.S. financial services company helping clients achieve retirement and wealth goals through three core businesses: Equitable (retirement and protection strategies), AllianceBernstein (global asset management), and Equitable Advisors (financial and wealth planning). Together, these franchises manage over $1 trillion in client assets. EQH operates with an asset-light model that generates strong free cash flow, which it uses to repurchase shares and grow dividends. Over the past five years, the share count has declined about 8% annually, while the dividend has compounded at a 7% growth rate, currently yielding 2.1%. A recent reinsurance transaction with Venerable released nearly $2 billion of excess capital to the holding company, reducing risk while validating reserves. As EQH continues shifting toward higher-quality, fee-based retirement and asset management businesses, we believe the market will reward it with a higher valuation multiple, reflecting its stronger growth profile, enhanced capital return, and lower risk structure.”
Equitable Holdings, Inc. (NYSE:EQH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Equitable Holdings, Inc. (NYSE:EQH) at the end of the second quarter, compared to 49 in the previous quarter. While we acknowledge the potential of Equitable Holdings, Inc. (NYSE:EQH) 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.
