Brandes Investment Partners, an asset management company, released its third-quarter 2025 investor letter for its “Brandes Small Cap Value Fund”. A copy of the letter can be downloaded here. The fund returned 11.16% (Class I Shares) in the quarter compared to its benchmark, the Russell 2000 Index’s 12.39% gain, and the Russell 2000 Value Index’s12.60% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Brandes Small Cap Value Fund highlighted stocks such as Prestige Consumer Healthcare Inc. (NYSE:PBH). Headquartered in Tarrytown, New York, Prestige Consumer Healthcare Inc. (NYSE:PBH) develops and manufactures over-the-counter (OTC) health and personal care products. The one-month return of Prestige Consumer Healthcare Inc. (NYSE:PBH) was -0.94%, and its shares lost 28.26% of their value over the last 52 weeks. On December 09, 2025, Prestige Consumer Healthcare Inc. (NYSE:PBH) stock closed at $59.94 per share, with a market capitalization of $2.95 billion.
Brandes Small Cap Value Fund stated the following regarding Prestige Consumer Healthcare Inc. (NYSE:PBH) in its third quarter 2025 investor letter:
“The small-cap investment committee bought Prestige Consumer Healthcare Inc. (NYSE:PBH), information technology (IT) services company Globant, and packaging business Sonoco Products Company.
Prestige Consumer Healthcare is an over-the-counter pharmaceutical manufacturer that operates primarily in North America. The company is a brand builder, focused on acquiring underperforming brands and expanding market share through advertising, marketing expertise and product innovation. Its notable brands include BC/Goody’s, Monistat, Chloraseptic, Clear Eyes, Compound W, Dramamine and Summer’s Eve. Prestige has 17 brands: 12 have market share leadership, while the rest are between second and fourth in their individual markets.
Recent share-price weakness for Prestige created an opportunity to invest in a company we know very well, having owned it for years previously, as recently as earlier this year. Prestige is well positioned as demand for its products is fairly defensive even in tougher economic times because its products are purchased on an “as-needed basis,” often annually or biannually. Private label competition is insignificant. The markets are niche, given consumers’ tendency to buy branded products for infrequent use, known efficacy, and trust. Topline growth is not high but stable. The key is capital deployment, with Prestige ranking (in order of priority): investing in strategic brands to ensure long-term, organic success, mergers and acquisition, and share repurchases. We take comfort in its track record of prior purchases and the company’s stated discipline of being opportunistic and focused on returns.”
Prestige Consumer Healthcare Inc. (NYSE:PBH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Prestige Consumer Healthcare Inc. (NYSE:PBH) at the end of the third quarter, which was 19 in the previous quarter. In the fiscal second quarter of 2026, Prestige Consumer Healthcare Inc. (NYSE:PBH) reported revenue of $274.1 million compared to $283.8 million in the prior year’s quarter. While we acknowledge the risk and potential of Prestige Consumer Healthcare Inc. (NYSE:PBH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Prestige Consumer Healthcare Inc. (NYSE:PBH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Prestige Consumer Healthcare Inc. (NYSE:PBH) and shared the list of cheap healthcare stocks to buy heading into 2026. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
