The London Company, an investment management company, released its fourth-quarter 2025 investor letter for its “The London Company Mid Cap Strategy”. A copy of the letter can be downloaded here. In Q4 2025, US equities posted the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. In the quarter, the portfolio returned 3.2% (3.0% net) compared to a 0.2% increase in the Russell Midcap Index. Both stock selection and sector exposure contributed to the relative performance of the portfolio in the quarter. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, London Company Mid Cap Strategy highlighted stocks like Churchill Downs Incorporated (NASDAQ:CHDN). Churchill Downs Incorporated (NASDAQ:CHDN) is a US-based racing, online wagering, and gaming company. On February 24, 2026, Churchill Downs Incorporated (NASDAQ:CHDN) stock closed at $96.19 per share. One-month return of Churchill Downs Incorporated (NASDAQ:CHDN) was -2.74%, and its shares lost 16.14% over the past 52 weeks. Churchill Downs Incorporated (NASDAQ:CHDN) has a market capitalization of $6.745 billion.
London Company Mid Cap Strategy stated the following regarding Churchill Downs Incorporated (NASDAQ:CHDN) in its fourth quarter 2025 investor letter:
“Churchill Downs Incorporated (NASDAQ:CHDN) – After underperforming earlier in the year, CHDN outperformed on strong results led by growth from its HRM facilities and increasing optimism regarding 2026. We continue to like CHDN for its highly cash generative assets, track record of good capital allocation, and opportunities to reinvest in the business at attractive returns. Additionally, we note that CHDN leaned into share repurchases in response to stock price weakness this year, supporting our view on capital allocation.”
Churchill Downs Incorporated (NASDAQ:CHDN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 50 hedge fund portfolios held Churchill Downs Incorporated (NASDAQ:CHDN) at the end of the fourth quarter, up from 45 in the previous quarter. While we acknowledge the risk and potential of Churchill Downs Incorporated (NASDAQ:CHDN) 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 Churchill Downs Incorporated (NASDAQ:CHDN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Churchill Downs Incorporated (NASDAQ:CHDN) and shared a bullish thesis on the company. 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.
