Here’s How the Acquisition Favored James Hardie Industries (JHX)

Aristotle Capital Boston, LLC, an investment advisor, released its “Small/Mid Cap Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small/mid-cap equities reported solid results in the third quarter, driven by a favorable macroeconomic backdrop. In the third quarter, the strategy delivered a return of 2.57% net of fees (3.07% gross of fees), underperforming the 9.00% total return of the Russell 2500 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Aristotle Capital Small/Mid Cap Equity Strategy highlighted stocks such as James Hardie Industries plc (NYSE:JHX). Based in Dublin, Ireland, James Hardie Industries plc (NYSE:JHX) manufactures and supplies fiber cement, fiber gypsum, and cement-bonded building products. The one-month return of James Hardie Industries plc (NYSE:JHX) was 4.18%, and its shares lost 34.06% of their value over the last 52 weeks. On October 31, 2025, James Hardie Industries plc (NYSE:JHX) stock closed at $20.93 per share, with a market capitalization of $12.122 billion.

Aristotle Capital Small/Mid Cap Equity Strategy stated the following regarding James Hardie Industries plc (NYSE:JHX) in its third quarter 2025 investor letter:

“James Hardie Industries plc (NYSE:JHX), manufactures Fiber Cement and Fiber Gypsum products (siding, backerboard, etc.) used primarily in residential construction (newbuild and repair/remodel). JHX acquired the existing portfolio company, The AZEK Company (AZEK), which provides JHX with a broader product offering for distributors, contractors and homeowners, positioning the company for market share gains in an expanded addressable market. Operating synergies, merger cost synergies and enhanced scale efficiencies should further enhance the shareholder value creation potential.”

James Hardie (JHX) Jumps 7% as Analyst Turns Bullish

James Hardie Industries plc (NYSE:JHX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held James Hardie Industries plc (NYSE:JHX) at the end of the second quarter, up from 12 in the previous quarter. While we acknowledge the risk and potential of James Hardie Industries plc (NYSE:JHX) 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 James Hardie Industries plc (NYSE:JHX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered James Hardie Industries plc (NYSE:JHX) and shared the list of hot stocks sparking buying frenzy. 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.