Impax Asset Management, an investment management company, recently released its third-quarter 2025 investor letter for the Impax US Sustainable Economy Fund. The portfolio experienced a slight lag behind the Russell 1000 in Q3 2025, as the US equity markets favored a risk-on approach that benefited high-risk, high-momentum, and lower-quality factors. Despite this, the fund (Institutional Class) still managed to return 7.33% in Q3, compared to 7.99% for the Index.
One of the highlighted stocks in the investor letter was Broadcom Inc. (NASDAQ:AVGO), a leading technology company specializing in semiconductor and infrastructure software solutions. Broadcom Inc. (NASDAQ:AVGO) saw a one-month return of -16.76% and a 49.91% increase in share value over the last 52 weeks. As of January 6, 2026, Broadcom Inc. (NASDAQ:AVGO) stock closed at $343.77 per share, with a market cap of $1.63 trillion.
In the investor letter, Impax US Sustainable Economy Fund praised Broadcom Inc. (NASDAQ:AVGO) for its strong performance driven by record earnings and increasing demand for its AI semiconductor solutions. The company’s leadership in custom AI accelerators and successful integration of VMware boosted investor confidence, along with bullish forward guidance and the ability to outpace analyst expectations. The stock is primarily owned for its exposure to themes like Resource Efficiency, Digital Infrastructure opportunities, and Meeting Basic Needs.
Despite Broadcom Inc. (NASDAQ:AVGO) holding the 12th position on the list of 30 Most Popular Stocks Among Hedge Funds, with 183 hedge fund portfolios holding the stock at the end of Q3 2025, Impax US Sustainable Economy Fund believes that there are potentially better AI stocks with greater upside potential and less downside risk. They suggest exploring undervalued AI stocks that stand to benefit from current market trends for a more promising investment opportunity.
Overall, Impax Asset Management’s investor letter for the Impax US Sustainable Economy Fund provides valuable insights into the performance and strategic holdings of the fund in Q3 2025. Investors looking to capitalize on the growing AI sector and technological advancements may find opportunities for growth and sustainability in companies like Broadcom Inc. (NASDAQ:AVGO) and other emerging AI stocks.
