Is Belden (BDC) Well Positioned for Continued Growth?

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The Small Cap Core Strategy reported solid results for the quarter but did not keep pace with the sharp rally, thus lagging the benchmark. The market’s preference for lower-quality companies persisted in the quarter and contributed significantly to the benchmark’s outperformance. On the other hand, the strategy remains focused on higher-quality companies with enduring fundamentals, consistent revenue, and a transparent path to profitability. The firm strongly believes that the strategy is well-positioned in the challenging quarter. 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, Riverwater Partners Small Cap Strategy highlighted stocks such as Belden Inc. (NYSE:BDC). Headquartered in St. Louis, Missouri, Belden Inc. (NYSE:BDC) offers connection solutions to bring data infrastructures. The one-month return Belden Inc. (NYSE:BDC) was 12.46%, and its shares gained 2.27% of their value over the last 52 weeks. On December 15, 2025, Belden Inc. (NYSE:BDC) stock closed at $121.55 per share, with a market capitalization of $4.816 billion.

Riverwater Partners Small Cap Strategy stated the following regarding Belden Inc. (NYSE:BDC) in its third quarter 2025 investor letter:

“Founded in 1920, and public in 1939, Belden Inc. (NYSE:BDC) is a leading provider of network infrastructure and broadband solutions, as well as cabling and connectivity solutions for commercial audio/video and security applications. Fun Fact: Thomas Edison purchased enameled wire from Belden.

In 2023, Dr. Ashish Chand ascended to the role of CEO, having joined the company in 2002. Dr. Ashish recognizes that BDC has a unique portfolio that spans the entirety of networking applications which its competitors don’t have; he took that portfolio and made a solutions strategy (rather than a back-end order business) that engages with customers at the front-end of network design and uses its networking/data expertise to solve problems. This has resulted in larger orders, higher margins, and more recurring-type business. One of its competitive advantages is its Horizon software platform, which speaks the languages of virtually all machines on a given network.

BDC has consistently grown revenue in high single digits and adjusted EPS by 10-15%. We believe the company is well positioned for continued growth at this pace, given its ability to solve communications needs of its customers, particularly as they seek to deploy AI solutions in their businesses.”

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Belden Inc. (NYSE:BDC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Belden Inc. (NYSE:BDC) at the end of the third quarter, which was 22 in the previous quarter. Belden Inc. (NYSE:BDC) reported revenue of $698 million in Q3 2025, marking an increase of 7% year-over-year. While we acknowledge the risk and potential of Belden Inc. (NYSE:BDC) 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 Belden Inc. (NYSE:BDC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.