Magellan Asset Management, an investment management company, recently released its third-quarter 2025 investor letter for the Magellan Global Fund. The fund focuses on investing in outstanding companies at attractive prices while leveraging a deep understanding of the macroeconomic landscape to manage risk. Despite global equities rising by 7.3% in the September quarter as measured by the MSCI World Index in USD, the portfolio underperformed the index due to the strong performance of more speculative companies in a risk-on environment.
In the investor letter, Magellan Global Fund highlighted SAP SE (NYSE:SAP) as one of its key stock holdings. SAP SE is a leading enterprise application and business solutions provider. The stock had a one-month return of 2.48% and had lost 3.21% of its value over the last 52 weeks. As of December 12, 2025, SAP SE’s stock closed at $242.98 per share, with a market capitalization of $285.666 billion.
Magellan Global Fund mentioned in its investor letter that SAP SE faced headwinds amid market concerns regarding the disruptive potential of AI. Despite these challenges, Magellan believes that SAP is well-positioned as the market leader in the highly defensible Enterprise Resource Planning (ERP) category and is benefiting from the tailwind of accelerating cloud adoption.
Although SAP SE is not among the 30 Most Popular Stocks Among Hedge Funds, 34 hedge fund portfolios held the stock at the end of the third quarter, up from 32 in the previous quarter. While Magellan acknowledges the potential of SAP SE as an investment, they believe that certain AI stocks offer greater upside potential with less downside risk. For investors looking for undervalued AI stocks, Magellan recommends checking out their free report on the best short-term AI stock.
In a separate article, Polen International Growth Strategy shared their views on SAP SE, providing additional insights into the company’s growth potential. Investors interested in more hedge fund investor letters from Q3 2025 can visit Insider Monkey’s hedge fund investor letters Q3 2025 page for further information.
Overall, Magellan Global Fund remains optimistic about SAP SE’s strategic pivot and market positioning despite the challenges posed by the AI landscape. Investors can download a copy of the third-quarter 2025 investor letter from Magellan Asset Management’s website for a more detailed analysis of their investment strategies and top stock picks.
