LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%. It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, LRT Global Opportunities Strategy highlighted stocks such as Fabrinet (NYSE:FN). Fabrinet (NYSE:FN) offers optical packaging and precision optical, electro-mechanical, and electronic manufacturing services. The one-month return of Fabrinet (NYSE:FN) was -0.10%, and its shares gained 52.82% of their value over the last 52 weeks. The one-month return of Fabrinet (NYSE:FN) was 0.81%, and its shares gained 20.71% of their value over the last 52 weeks. On October 6, 2025, Fabrinet (NYSE:FN) stock closed at $370.29 per share, with a market capitalization of $13.23 billion.
LRT Global Opportunities Strategy stated the following regarding Fabrinet (NYSE:FN) in its third quarter 2025 investor letter:
“Fabrinet (NYSE:FN) stands as a premier and highly specialized provider of advanced optical packaging and precision manufacturing services. The company has carved out a unique and defensible niche by focusing exclusively on the most complex and technologically demanding manufacturing challenges for the world’s leading original equipment manufacturers (OEMs). This singular focus has established Fabrinet not as a commoditized contract manufacturer, but as a critical, deeply integrated partner in the optical communications, industrial laser, and automotive industries, creating a durable enterprise with a long runway for growth…
The cornerstone of Fabrinet’s competitive advantage is its profound and difficult-to-replicate engineering expertise. The company excels in high-mix, low-volume production of sophisticated optical and electro mechanical components that require extreme precision and pristine manufacturing environments. This is a capability that most OEMs have chosen to outsource due to the immense capital investment and specialized talent required. By becoming the trusted manufacturing arm for its clients, Fabrinet creates exceptionally high switching costs. Its engineers work collaboratively with customers from the initial design and prototyping phases all the way through to volume production, deeply embedding Fabrinet’s processes and intellectual property into the final product. This level of integration makes it practically and economically infeasible for a customer to move its business to a less capable competitor…” (Click here to read the full text)
Fabrinet (NYSE:FN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held Fabrinet (NYSE:FN) at the end of the second quarter, compared 38 in the previous quarter. Fabrinet (NYSE:FN) generated $910 million in revenue for fiscal Q4 2025, increasing over 20% year-over-year, and a 4% from Q3. While we acknowledge the risk and potential of Fabrinet (NYSE:FN) 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 Fabrinet (NYSE:FN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Fabrinet (NYSE:FN) and shared the list of AI stocks analysts say you shouldn’t ignore. 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.
