Alluvial Capital Management, an investment advisory firm, released its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Fund delivered an exceptional quarter, returning 41.2%, making 2025 the best year since inception. The supportive market environment drove the performance of the Fund. The gains are highly concentrated in a small set of companies in the AI value chain. The Fund is confident in its portfolio of good-quality, deeply undervalued companies. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Alluvial Capital Management highlighted stocks like Garrett Motion Inc. (NASDAQ:GTX). Garrett Motion Inc. (NASDAQ:GTX) designs and manufacturers engineered turbocharging and high-speed electric motor technologies for OEMs, distributors, and industrial fields. On March 11, 2026, Garrett Motion Inc. (NASDAQ:GTX) stock closed at $18.11 per share. One-month return of Garrett Motion Inc. (NASDAQ:GTX) was -12.09%, and its shares gained 108.64% over the past 52 weeks. Garrett Motion Inc. (NASDAQ:GTX) has a market capitalization of $3.46 billion.
Alluvial Capital Management stated the following regarding Garrett Motion Inc. (NASDAQ:GTX) in its fourth quarter 2025 investor letter:
“Fellow industrial Garrett Motion Inc. (NASDAQ:GTX) had a remarkable 2025. The company repurchased 9% of its shares outstanding, initiated a dividend, and committed to returning 75% of its free cash flow to shareholders, all of which caused the share price to double. Looking ahead, Garrett Motion will continue to produce copious free cash flow and reduce its share count aggressively. Alluvial Fund still hold the shares we subscribed for in the company’s 2021 recapitalization, making Garrett Motion another of our long tenured investments. Unfortunately, for years, these shares traded mostly sideways, held down by two factors: a large share overhang and fears of product obsolescence. The share overhang has largely dissipated. In 2022, four hedge funds controlled almost 80% of Garrett Motion shares. As of year-end, these funds are down to less than 10% ownership, freeing up millions of shares for ownership by others, including the all-important index funds. Even better, the market has gradually re-evaluated its assessment of Garrett’s long-term prospects. Electric vehicles will eventually predominate, but it turns out the transition will take lot longer than investors were pricing in a few years ago.”
Garrett Motion Inc. (NASDAQ:GTX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held Garrett Motion Inc. (NASDAQ:GTX) at the end of the fourth quarter, up from 37 in the previous quarter. While we acknowledge the risk and potential of Garrett Motion Inc. (NASDAQ:GTX) 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 Garrett Motion Inc. (NASDAQ:GTX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Garrett Motion Inc. (NASDAQ:GTX) and shared Harbor Capital Advisors’ views 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.
