Here’s Montaka’s View on Floor & Décor (FND)

Montaka Global Investments, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm is focused on sustainably compounding its portfolio over the long term. The June quarter was interesting for investors. In the first week, Trump’s ‘Liberation Day’ tariff policy caused a double-digit drop in the S&P 500. However, the index then rebounded nearly 25%, despite ongoing Israeli and US attacks on Iran. Although volatile, such market swings can create attractive investment opportunities. Montaka’s portfolio is highly concentrated, with the top 10 investments representing 76% of the portfolio. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Montaka Global Investments highlighted stocks such as Floor & Decor Holdings, Inc. (NYSE:FND). Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring and related accessories. The one-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -0.67%, and its shares lost 30.83% of their value over the last 52 weeks. On September 18, 2025, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $81.98 per share, with a market capitalization of $8.829 billion.

Montaka Global Investments stated the following regarding Floor & Decor Holdings, Inc. (NYSE:FND) in its second quarter 2025 investor letter:

“In a recent presentation to investors, I asked what the companies on the left (below) all have in common. It’s perhaps not immediately obvious what a payments company has in common with a retailer; or what an asset manager has in common with an audio streaming platform. (Of course, all of these companies are owned by Montaka at present.)

It is only with the conceptual model of ‘flywheels’ that investors can connect these seemingly disparate businesses.

Or consider the retailer, Floor & Decor Holdings, Inc. (NYSE:FND). By specializing only in hard surface flooring, they can leverage greater scale when ordering directly from manufacturers. By sharing these reduced costs with customers through lower prices, and by offering the widest range of SKUs (stock keeping units) on the retail floor, more customers adopt and are retained … which in turn further increases market share and scale. (See further below for Lachlan Mackay’s case study on Floor & Decor)…” (Click here to read the full text)

Jim Thinks Floor & Decor Holdings, Inc. (FND) May Be Undervalued: Here's Why

Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the second quarter, up from 44 in the previous quarter.  Floor & Decor Holdings, Inc.’s (NYSE:FND) sales for the second quarter grew 7.1% to $1.214 billion. While we acknowledge the risk and potential of Floor & Decor Holdings, Inc. (NYSE:FND) 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 Floor & Decor Holdings, Inc. (NYSE:FND) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Floor & Decor Holdings, Inc. (NYSE:FND) and shared Madison Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.