The London Company, an esteemed investment management firm, recently released its first-quarter 2025 investor letter, showcasing their “Large Cap Strategy.” In a market that experienced a correction after two years of strong performance, The London Company’s portfolio saw a return of 2.4% (2.3% net) during the quarter, in comparison to the Russell 1000 Index’s 4.5% increase. For those interested in delving deeper into their investment choices for 2025, the fund’s top 5 holdings are available for review.
One of the highlighted stocks in The London Company’s investor letter is FedEx Corporation (NYSE:FDX). Established in 1971, FedEx Corporation offers a range of transportation, e-commerce, and business services. Despite a challenging quarter where the stock experienced a one-month return of -15.70% and a 10.95% loss over the past 52 weeks, the company remains a compelling long-term investment option. As of May 13, 2025, FedEx Corporation’s stock closed at $231.15 per share with a market capitalization of $55.358 billion.
The London Company’s investor letter provided insights on FedEx Corporation, stating, “FedEx Corporation (NYSE:FDX) – FDX shares lagged this quarter due to underwhelming segment results due to a slowing freight backdrop. Management implemented an aggressive cost-cutting plan to improve margins. Despite these challenges, we remain optimistic about FDX’s long-term outlook as the Freight separation could unlock value and its network is well-positioned to benefit from a freight recovery.”
While FedEx Corporation may not be among the 30 most popular stocks among hedge funds, with 66 hedge fund portfolios holding the stock at the end of the fourth quarter, The London Company sees potential in the company’s future performance. However, they believe that AI stocks hold greater promise for delivering higher returns in a shorter timeframe. For investors seeking a promising AI stock trading at less than 5 times its earnings, The London Company recommends exploring their report on the cheapest AI stock available.
In another article, FedEx Corporation was highlighted as one of the worst blue-chip stocks to buy. For more investor insights, readers are encouraged to visit the hedge fund investor letters Q1 2025 page. Looking ahead, readers can explore topics such as “Michael Burry Is Selling These Stocks” and “A New Dawn Is Coming to US Stocks” for further market analysis.
Disclosure: None. This article was originally published on Insider Monkey and has been rewritten to provide a unique perspective on The London Company’s investor letter and their views on FedEx Corporation’s performance in Q1 2025.
