American Century Investments, an investment management company, recently released its third-quarter 2025 investor letter for the “American Century Investments Small Cap Value Fund.” The portfolio focuses on investing in small-cap companies that are undervalued and have the potential for future growth.
Equities performed strongly in the third quarter, with several stocks hitting record highs. The US Federal Reserve also reduced its benchmark interest rate for the first time in the year during this period. The investor class of the fund returned 4.69% in the quarter, compared to 12.60% for the Russell 2000 Value Index. For more details, the full investor letter can be downloaded from the provided link.
One of the highlighted stocks in the third-quarter letter is Visteon Corporation (NASDAQ:VC), an automotive technology company based in Van Buren, Michigan. Visteon Corporation (NASDAQ:VC) closed at $98.99 per share on January 5, 2026. The stock had a one-month return of -0.92% and has gained 14.32% in value over the last 52 weeks, with a market capitalization of $2.701 billion.
American Century Investments Small Cap Value Fund mentioned Visteon Corporation (NASDAQ:VC) in its investor letter, noting that the company had fallen out of favor with investors due to concerns about tariffs limiting automobile production. However, Visteon Corporation (NASDAQ:VC) has secured new business with Asian original equipment manufacturers, excluding China, which has helped boost its prospects.
Although Visteon Corporation (NASDAQ:VC) is not among the 30 most popular stocks held by hedge funds, 33 hedge fund portfolios included the stock at the end of the third quarter. While acknowledging the potential of Visteon Corporation (NASDAQ:VC) as an investment, American Century Investments believes that certain AI stocks offer greater upside potential with less downside risk. For investors interested in undervalued AI stocks that could benefit from current economic trends, a free report on the best short-term AI stock is recommended.
For more information on Visteon Corporation (NASDAQ:VC) and other auto stocks, readers can refer to another article that covers the best auto stocks to buy. Additionally, the hedge fund investor letters for the third quarter of 2025 provide insights from leading investors in the market.
Overall, American Century Investments Small Cap Value Fund continues to focus on identifying undervalued small-cap companies with growth potential. The fund’s performance in the third quarter reflects its commitment to delivering value to investors through strategic investment decisions and research-driven stock selections.
