Here’s What Drove NewMarket Corporation’s (NEU) Strong Performance

The London Company, an investment management company, released “The London Company Large Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The economy retained most of its momentum from the second quarter, even though the economic data released during the third quarter was mixed. The portfolio returned 6.3% (6.2%, net) during the quarter compared to an 8.0% gain for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks such as NewMarket Corporation (NYSE:NEU). NewMarket Corporation (NYSE:NEU) engages in the manufacture and sale of petroleum additives. The one-month return of NewMarket Corporation (NYSE:NEU) was -10.44%, and its shares gained 43.63% of their value over the last 52 weeks. On November 3, 2025, NewMarket Corporation (NYSE:NEU) stock closed at $767.59 per share, with a market capitalization of $7.213 billion.

The London Company Large Cap Strategy stated the following regarding NewMarket Corporation (NYSE:NEU) in its third quarter 2025 investor letter:

“NewMarket Corporation (NYSE:NEU) – NEU was a strong performer in the quarter, mainly due to three factors. First, low oil prices cut input costs faster than revenue, driving improved profitability. Second, a timely defense acquisition allowed NEU to ramp up production amid global conflicts. Finally, the market is positively viewing the company’s use of cash flow to repay debt.”

NewMarket Corporation (NYSE:NEU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 22 hedge fund portfolios held NewMarket Corporation (NYSE:NEU) at the end of the second quarter, up from 19 in the previous quarter.  While we acknowledge the risk and potential of NewMarket Corporation (NYSE:NEU) 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 NewMarket Corporation (NYSE:NEU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered NewMarket Corporation (NYSE:NEU) and shared the list of best specialty chemicals stocks to invest in. 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.