Broyhill Asset Management, an investment advisor, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 witnessed extreme market concentration and a strong focus on artificial intelligence, leaving many sectors behind. The Portfolio, which has been significantly reshaped, now trades at a substantial discount relative to the broader market. The firm strongly believes it will benefit as market fundamentals improve. For the year, the portfolio declined by 1.4%, underperforming the MSCI ACWI’s 22.9% return. Momentum has dominated equity markets, with performance driven more by narratives than fundamentals. The firm admits the risks of being different but will remain contrarian and strategic, adapting more quickly to changing facts. In addition, please check the Portfolio’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Broyhill Asset Management highlighted stocks like Dollar Tree, Inc. (NASDAQ:DLTR). Dollar Tree, Inc. (NASDAQ:DLTR) operates a multi-point chain of discount stores. On February 25, 2026, Dollar Tree, Inc. (NASDAQ:DLTR) stock closed at $127.70 per share. One-month return of Dollar Tree, Inc. (NASDAQ:DLTR) was 8.86%, and its shares gained 74.55% over the past 52 weeks. Dollar Tree, Inc. (NASDAQ:DLTR) has a market capitalization of $26.047 billion.
Broyhill Asset Management stated the following regarding Dollar Tree, Inc. (NASDAQ:DLTR) in its fourth quarter 2025 investor letter:
“Our largest contributors were Philip Morris, Dollar Tree, Inc. (NASDAQ:DLTR), and IQVIA. Winners shared a common thread: durable businesses with identifiable catalysts that the market had mispriced. Dollar Tree rallied sharply after tariff-induced panic proved overblown and the cleaner post-Family Dollar business began to shine through. While the turnaround has been uneven, the simplification of the business and improvements in execution at the core Dollar Tree banner reinforced our view that normalized earnings power is materially higher than the market had been discounting. We see the stock’s recovery as a partial unwind of excessive pessimism rather than a full repricing of the opportunity ahead.”
Dollar Tree, Inc. (NASDAQ:DLTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Dollar Tree, Inc. (NASDAQ:DLTR) at the end of the fourth quarter, compared to 49 in the previous quarter. While we acknowledge the risk and potential of Dollar Tree, Inc. (NASDAQ:DLTR) 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 Dollar Tree, Inc. (NASDAQ:DLTR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Dollar Tree, Inc. (NASDAQ:DLTR) and shared London Company Mid Cap Strategy’s 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.
