Giverny Capital Asset Management, LLC, an investment management company, recently released its fourth-quarter 2025 investor letter. The firm reported that its Portfolio returned 0.01% in the fourth quarter, compared to 2.66% for the S&P 500. Year-to-date, the fund returned 12.58% compared to 17.88% for the Index. Despite solid appreciation, the firm faced challenges in the fourth quarter and calendar year. The outperformance of a few large technology companies negatively impacted performance, as the portfolio is underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market’s focus on AI investments has left the actual benefits unclear.
One of the leading performance contributors highlighted in the investor letter was Installed Building Products, Inc. (NYSE:IBP). Installed Building Products is a construction company specializing in the installation of insulation and other building products. The stock of Installed Building Products gained 5.09% in one month and has appreciated by 53.58% over the last 52 weeks. As of January 30, 2026, the stock closed at $288.14 per share, with a market capitalization of $7.773 billion.
Giverny Capital Asset Management praised Installed Building Products in its investor letter, stating, “Installed Building Products, Inc. (NYSE:IBP) installs fiberglass insulation into the walls of new homes and apartment buildings. Given the weak housing market, it grew earnings modestly in 2025, but even that trounced expectations. IBP has exceptional management and has generated good returns for us over the past four years.”
Despite its performance, Installed Building Products, Inc. (NYSE:IBP) is not among the 30 most popular stocks among hedge funds. However, 28 hedge fund portfolios held shares of IBP at the end of the third quarter, up from 21 in the previous quarter. While acknowledging the potential of IBP as an investment, Giverny Capital believes that certain AI stocks offer greater upside potential and carry less downside risk. For investors seeking undervalued AI stocks that stand to benefit from current market trends, the firm recommends exploring their free report on the best short-term AI stock.
In conclusion, Giverny Capital Asset Management’s fourth-quarter 2025 investor letter provides insights into the firm’s performance and key holdings, with Installed Building Products, Inc. standing out as a notable contributor. Despite challenges in the market, the firm remains optimistic about the potential of its portfolio and continues to seek opportunities for growth and success in the investment landscape.
