Renaissance Investment Management, a prominent investment management company, recently released its Q3 2025 “International Small Cap Equity Strategy” investor letter. The letter, which can be downloaded here, highlighted the success of international equities, which have seen positive returns for the third consecutive quarter. This positive trend is leading towards what could be the best year for international equities since 2017. The portfolio managed by Renaissance Investment Management also posted positive returns in the quarter, outperforming the benchmark.
One of the key stocks mentioned in the investor letter is Tower Semiconductor Ltd. (NASDAQ:TSEM). Headquartered in Migdal Haemek, Israel, Tower Semiconductor Ltd. is an independent semiconductor foundry. The stock has shown impressive performance with a one-month return of 16.52% and a 152.70% gain over the last 52 weeks. As of December 9, 2025, Tower Semiconductor Ltd. closed at $124.00 per share, with a market capitalization of $13.903 billion.
In the investor letter, Renaissance International Small Cap Equity Strategy praised Tower Semiconductor Ltd. for its strong performance during the quarter. The company’s decision to increase capacity in Silicon Photonics and Silicon Germanium has allowed it to capitalize on the high demand for data centers and artificial intelligence.
Tower Semiconductor Ltd. is not among the 30 most popular stocks among hedge funds, but the number of hedge fund portfolios holding the stock increased from 28 to 38 in the third quarter of 2025. The company reported revenue of $396 million in Q3 2025, resulting in a net profit of $54 million. While Tower Semiconductor Ltd. shows potential as an investment, Renaissance Investment Management believes that certain AI stocks offer greater upside potential with less downside risk.
For more information on Tower Semiconductor Ltd. and other stocks beating the market, readers can refer to additional articles on the subject. Those interested in hedge fund investor letters from Q3 2025 can also find more information on our website.
