The London Company, an investment management firm, recently released its third-quarter 2025 investor letter outlining the performance of its Large Cap Strategy. The letter highlighted the continued rally of US equities driven by factors such as the Fed rate cut, strong corporate earnings, and excitement surrounding artificial intelligence (AI). Despite mixed economic data in the third quarter, the economy maintained its momentum from the previous quarter.
During the quarter, the portfolio managed by The London Company returned 6.3% (6.2%, net), slightly underperforming the 8.0% gain of the Russell 1000 Index. Investors can access the fund’s top 5 holdings to gain insights into its best picks for 2025.
One of the stocks highlighted in the investor letter was Equitable Holdings, Inc. (NYSE:EQH), a leading diversified financial services company. The stock had a one-month return of -4.28% and saw a 9.67% increase in value over the last 52 weeks. As of November 3, 2025, Equitable Holdings, Inc. (NYSE:EQH) closed at $48.79 per share with a market capitalization of $14.614 billion.
The London Company’s assessment of Equitable Holdings, Inc. (NYSE:EQH) in its investor letter emphasized the company’s position as a key player in the US financial services sector. With core businesses focused on retirement and protection strategies, global asset management, and financial and wealth planning, Equitable Holdings manages over $1 trillion in client assets. The company’s asset-light model generates strong free cash flow used for share repurchases and dividend growth. A recent reinsurance transaction with Venerable released excess capital, reducing risk and validating reserves. The shift towards fee-based retirement and asset management businesses is expected to result in a higher valuation multiple for Equitable Holdings.
While Equitable Holdings, Inc. (NYSE:EQH) may not be among the 30 Most Popular Stocks Among Hedge Funds, the company’s potential as an investment is recognized. However, The London Company believes that certain AI stocks offer greater upside potential and lower downside risk. Investors seeking undervalued AI stocks can explore opportunities highlighted in their free report on the best short-term AI stock.
Overall, The London Company’s third-quarter 2025 investor letter provides valuable insights into the performance of its Large Cap Strategy and highlights Equitable Holdings, Inc. as a promising investment opportunity in the financial services sector.
