Bread Financial Holdings (BFH): Strong Position in Attractive Niches with Favorable Valuations

Turtle Creek Asset Management, an investment management company, has released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm believes that the portfolio offered a compelling opportunity in a highly valued market environment. The net asset value of the Turtle Creek Equity Fund increased by 0.4% in the third quarter, lagging behind the S&P MidCap 400 index’s 7.7% increase and the S&P/TSX Completion index’s 16.3% gain. Turtle Creek Synthetic PE Fund increased 1.4%, Turtle Creek United States Equity Fund decreased 1.0% and Turtle Creek Canadian Equity Fund increased 7.8% during the same period. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Turtle Creek Asset Management highlighted stocks such as Bread Financial Holdings, Inc. (NYSE:BFH). Bread Financial Holdings, Inc. (NYSE:BFH) is a financial services company that offers tech-forward payment and lending solutions. The one-month return of Bread Financial Holdings, Inc. (NYSE:BFH) was 7.05%, and its shares gained 13.63% of their value over the last 52 weeks. On November 12, 2025, Bread Financial Holdings, Inc. (NYSE:BFH) stock closed at $63.96 per share, with a market capitalization of $2.917 billion.

Turtle Creek Asset Management stated the following regarding Bread Financial Holdings, Inc. (NYSE:BFH) in its third quarter 2025 investor letter:

“Bread Financial Holdings, Inc. (NYSE:BFH) provides white-labeled credit cards (private label or co-branded) and ‘buy now, pay later’ lending as well as related loyalty program and marketing services for brand partners in North America including AAA, the NFL, Ulta Beauty, and numerous others. It also offers high yield deposit accounts to consumers under its own Bread Financial brand. It is neither the largest in its industry nor do we think of it as the leader. That acknowledgement goes to a company called Synchrony Financial which is five times larger than Bread. We know Synchrony well and in fact own it today, just not in our flagship fund. Bread’s management team is strong and the board is shareholder aligned. Once we introduce valuation, Bread is superior to Synchrony at current share prices such that today it is one of the largest holdings in the flagship fund.”

In another article, we covered Bread Financial Holdings, Inc. (NYSE:BFH) and shared the list of deep value stocks to invest in. 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.