The London Company, an investment management company, released “The London Company Large Cap Strategy” fourth-quarter 2025 investor letter. In Q4 2025, US equities ended the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. A copy of the letter can be downloaded here. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. Against this backdrop The London Company Large Cap portfolio returned 0.4% (0.2% net) compared to a 2.4% increase in the Russell 1000 Index. Volatility factors and concentrated market leadership were notable headwinds to the Strategy’s performance in the quarter. Heading into 2026, the economic and policy backdrop presents a blend of confidence and doubt. Against this backdrop, the portfolio remains stable and believes it can help investors in long-term wealth creation while managing downside risk. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks like Republic Services, Inc. (NYSE:RSG). Republic Services, Inc. (NYSE:RSG) is a leading environmental services company in the United States and Canada. On February 18, 2026, Republic Services, Inc. (NYSE:RSG) stock closed at $216.84 per share. One-month return of Republic Services, Inc. (NYSE:RSG) was -0.51%, and its shares are up 6.07% over the past twelve months. Republic Services, Inc. (NYSE:RSG) has a market capitalization of $67.701 billion.
The London Company Large Cap Strategy stated the following regarding Republic Services, Inc. (NYSE:RSG) in its fourth quarter 2025 investor letter:
“Increased: Republic Services, Inc. (NYSE:RSG) – Addition reflects attractive opportunity to increase our exposure in a defensive and resilient business model. The waste management industry has lagged the broader market this year due to cyclical volume weakness in construction, demolition, and the industrial sector. Despite these short term headwinds, RSG continues to exhibit operational strength through pricing power and cost controls, which have led to stronger margins. We remain attracted to the high-quality, essential business with strong and stable cash flow generation. Recently, insiders have bought shares in the open market, which we view as an additional data point to the attractive valuation.”
Republic Services, Inc. (NYSE:RSG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Republic Services, Inc. (NYSE:RSG) at the end of the third quarter, compared to 60 in the previous quarter. While we acknowledge the risk and potential of Republic Services, Inc. (NYSE:RSG) 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 Republic Services, Inc. (NYSE:RSG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Republic Services, Inc. (NYSE:RSG) and shared Parnassus Core Equity Fund’s views on the company during the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
