Do You Believe in Distribution Solutions Group (DSGR)?

Night Watch Investment Management, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Despite experiencing high volatility in individual stocks during Q4, the fund finished the quarter approximately flat. Overall, the firm is pleased with how 2025 unfolded. Like 2024, the results were broad-based and did not rely on any single security.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Night Watch Investment Management highlighted stocks such as Distribution Solutions Group, Inc. (NASDAQ:DSGR). Headquartered in Fort Worth, Texas, Distribution Solutions Group, Inc. (NASDAQ:DSGR) is a specialty distribution company. On January 6, 2026, Distribution Solutions Group, Inc. (NASDAQ:DSGR) stock closed at $28.54 per share. One-month return of Distribution Solutions Group, Inc. (NASDAQ:DSGR) was 0.00%, and its shares lost 18.53% of their value over the last 52 weeks. Distribution Solutions Group, Inc. (NASDAQ:DSGR) has a market capitalization of $1.321 billion.

Night Watch Investment Management stated the following regarding Distribution Solutions Group, Inc. (NASDAQ:DSGR) in its fourth quarter 2025 investor letter:

“Distribution Solutions Group, Inc. (NASDAQ:DSGR), a specialty distribution company, performed largely in line with our expectations despite the slight move down in share price. US industrial activity remains in contraction, but DSGR has seen their organic growth accelerate to 6%. Over the last two years their management team has undertaken various business optimization steps, which should come to light when US industrial activity normalizes.”

Distribution Solutions Group, Inc. (NASDAQ:DSGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 14 hedge fund portfolios held Distribution Solutions Group, Inc. (NASDAQ:DSGR) at the end of the third quarter, up from 11 in the previous quarter. Distribution Solutions Group, Inc.’s (NASDAQ:DSGR) consolidated revenue for the third quarter of 2025 increased 10.7% to $518 million. While we acknowledge the risk and potential of Distribution Solutions Group, Inc. (NASDAQ:DSGR) 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 Distribution Solutions Group, Inc. (NASDAQ:DSGR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.