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 Darden Restaurants, Inc. (NYSE:DRI). Darden Restaurants, Inc. (NYSE:DRI) owns and operates full-service restaurants. The one-month return of Darden Restaurants, Inc. (NYSE:DRI) was -9.42%, and its shares gained 20.80% of their value over the last 52 weeks. On October 7, 2025, Darden Restaurants, Inc. (NYSE:DRI) stock closed at $191.54 per share, with a market capitalization of $22.279 billion.
LRT Global Opportunities Strategy stated the following regarding Darden Restaurants, Inc. (NYSE:DRI) in its third quarter 2025 investor letter:
“Darden Restaurants, Inc. (NYSE:DRI) stands as the preeminent operator in the full-service dining industry, managing a portfolio of some of the most recognizable and successful brands in American casual and fine dining. The company’s collection of differentiated restaurant concepts, led by the iconic Olive Garden, has established Darden as a category-defining enterprise. Through a disciplined focus on operational excellence, leveraging immense scale, and a prudent capital allocation strategy, Darden has built a formidable competitive moat and a durable platform for compounding shareholder value.
The cornerstone of Darden’s competitive advantage is its unmatched scale. As one of the world’s largest full-service restaurant companies, it possesses significant cost advantages across its supply chain, enabling it to procure high-quality ingredients at costs that smaller competitors and independent restaurants cannot match. This scale also provides substantial leverage in marketing, real estate, and technology, allowing for sophisticated data analytics that inform everything from menu optimization to site selection. This data driven approach results in a superior guest experience and operational efficiencies that consistently drive industry-leading performance. The strength of its individual brands, particularly the cash-flow-generating powerhouse Olive Garden, provides a stable foundation that funds investment across the entire portfolio…” (Click here to read the full text)
Darden Restaurants, Inc. (NYSE:DRI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held Darden Restaurants, Inc. (NYSE:DRI) at the end of the second quarter, up from 36 in the previous quarter. In the fiscal first quarter of 2026, Darden Restaurants, Inc. (NYSE:DRI) reported $3 billion of total sales, representing a 10% year-over-year growth. While we acknowledge the risk and potential of Darden Restaurants, Inc. (NYSE:DRI) 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 Darden Restaurants, Inc. (NYSE:DRI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Darden Restaurants, Inc. (NYSE:DRI) and shared the list of stocks Jim Cramer offered insights on. 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.
