Here’s Why Magnera Corporation (MAGN) Traded Lower in Q2

Loomis Sayles, an investment management company, released its “Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the second quarter amid tariff and trade concerns and geopolitical events. The fund returned 5.40% compared to 4.97% for the Russell 2000® Value Index due to positive allocation effects across multiple sectors.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Magnera Corporation (NYSE:MAGN). Magnera Corporation (NYSE:MAGN) manufactures and distributes non-woven and related products. The one-month return of Magnera Corporation (NYSE:MAGN) was 1.04%, and its shares lost 42.38% of their value over the last 52 weeks. On September 03, 2025, Magnera Corporation (NYSE:MAGN) stock closed at $11.61 per share, with a market capitalization of $413.316 million.

Loomis Sayles Small Cap Value Fund stated the following regarding Magnera Corporation (NYSE:MAGN) in its second quarter 2025 investor letter:

“Magnera Corporation (NYSE:MAGN) was a newer portfolio position, created through the merger of two existing entities. The combined company is a manufacturer of non-woven materials for consumer products such as diapers, feminine products, and food and beverage items. We bought shares in the fourth quarter of 2024 following the merger transaction as we viewed the combination as having high potential while acknowledging a somewhat elevated financial leverage of the new company. Following the announcement of global tariffs, the elevated risk profile proved to be outside the bounds of our investment thesis, and we chose to exit the position relatively early in the quarter.”

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Magnera Corporation (NYSE:MAGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Magnera Corporation (NYSE:MAGN) at the end of the second quarter, which was 41 in the previous quarter. While we acknowledge the risk and potential Magnera Corporation (NYSE:MAGN) 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 Magnera Corporation (NYSE:MAGN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Magnera Corporation (NYSE:MAGN) and shared Kingdom Capital Advisors’ views on the company in the previous quarter. 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.