Bristol Gate Capital Partners, an investment management company, published its Q4 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. Bristol Gate prioritizes companies with strong free cash flows, disciplined capital allocation, and high dividend growth for superior risk-adjusted returns. These resilient businesses align management interests with shareholders through sustainable dividends. Since late 2022, the market has shifted towards AI leaders, resulting in the fund’s underperformance due to narrow breadth. While the firm invests in data science and AI, the focus remains on high dividend growth companies. Recently, this narrow focus was shifting, supported by the outperformance of the S&P US Dividend Growers, S&P 500 Dividend Aristocrats, and S&P 500 Equal Weight. This market breadth expansion, along with the firm’s Data Science team’s advancements in the Distant Future Model, offers a strong opportunity for investors to buy the strategy and mitigate risks in the current concentrated market. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Bristol Gate Capital Partners US Equity Strategy highlighted stocks such as Carrier Global Corporation (NYSE:CARR). Carrier Global Corporation (NYSE:CARR) is an intelligent climate and energy solutions provider that operates through Heating, Ventilating, and Air Conditioning (HVAC) and Refrigeration segments. On March 27, 2026, Carrier Global Corporation (NYSE:CARR) closed at $54.25 per share. One-month return of Carrier Global Corporation (NYSE:CARR) was -15.02%, and its shares lost 14.43% over the past 52 weeks. Carrier Global Corporation (NYSE:CARR) has a market capitalization of $45.345 billion.
Bristol Gate Capital Partners US Equity Strategy stated the following regarding Carrier Global Corporation (NYSE:CARR) in its fourth quarter 2025 investor letter:
“Materials and Consumer Discretionary were the only negative absolute sectors in Q4. Zoetis, Carrier Global Corporation (NYSE:CARR) and Cintas were the main detractors from a stock perspective. Carrier Global (CARR) fell after lowering their 2025 guidance during the Q3 results. Residential sales volumes continue to be weak in the Americas region as higher interest rates and distributor destocking weighed on the segment. In early December the board of directors announced a 6.7% increase which was below our expectations.”
Carrier Global Corporation (NYSE:CARR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 59 hedge fund portfolios held Carrier Global Corporation (NYSE:CARR) at the end of the fourth quarter, up from 48 in the previous quarter. In Q4 2025, Carrier Global Corporation (NYSE:CARR) reported sales were $4.8 billion, adjusted operating profit was $455 million, and adjusted EPS was $0.34. While we acknowledge the risk and potential of Carrier Global Corporation (NYSE:CARR) 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 Carrier Global Corporation (NYSE:CARR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Carrier Global Corporation (NYSE:CARR) and shared a list of stocks on Jim Cramer’s Radar. In addition, please check out our hedge fund investor letters Q4 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.
