Rothschild & Co Wealth Management, an investment management company, released its LongRun Equity strategy third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm is a committed long-term business owner, focused on a portfolio of high-quality companies. The strategy returned +3.9 % (in EUR, unhedged) in the third quarter, underperforming its benchmark’s 7.5% return. Since its inception, the strategy has delivered an annualized return of 10% compared to 11% for the global equities. The firm’s selection of highly profitable quality companies was not rewarded by the market, which instead focused on riskier, growth-focused, and often unprofitable companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.
In its third-quarter 2025 investor letter, Rothschild & Co LongRun Equity highlighted stocks such as Synopsys, Inc. (NASDAQ:SNPS). Synopsys, Inc. (NASDAQ:SNPS) offers electronic design automation software products used to design and test integrated circuits. The one-month return of Synopsys, Inc. (NASDAQ:SNPS) was 16.13%, and its shares lost 4.88% of their value over the last 52 weeks. On December 24, 2025, Synopsys, Inc. (NASDAQ:SNPS) stock closed at $475.75 per share, with a market capitalization of $91.02 billion.
Rothschild & Co LongRun Equity stated the following regarding Synopsys, Inc. (NASDAQ:SNPS) in its third quarter 2025 investor letter:
“During the third quarter, we initiated two new positions – Amazon and Synopsys, Inc. (NASDAQ:SNPS) – financed through a reduction in cash holdings, a partial sale of Alphabet, and a full exit from Accenture.
Our second new investment during the quarter was Synopsys, a company we know well through our extensive industry research, particularly our long-standing work on Cadence. Both firms are leaders in chip design and play a critical role in the semiconductor manufacturing process. After a sharp share price drop during the quarter, management acknowledged near-term challenges in its Intellectual Property business, driven by lower demand and export restrictions in China. However, the core business remains strong, the integration of its most recent acquisition, Ansys, is on track, and management expects Intellectual Property growth to return to mid-teens by 2027. We believe Synopsys’ leadership in design automation, strong innovation pipeline, and strategic positioning in AI-driven chip design provide a solid foundation for long-term growth.
As we are typically fully invested, we needed to free up capital to fund the purchases of Amazon and Synopsys. In addition to trimming Alphabet, we decided to exit Accenture entirely. We expect incremental consulting spend to shift away from traditional IT firms like Accenture. In addition, generative AI is likely to automate a significant share of outsourced work currently handled by consultants, creating structural pressure on their future growth and profitability.”
Synopsys, Inc. (NASDAQ:SNPS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 83 hedge fund portfolios held Synopsys, Inc. (NASDAQ:SNPS) at the end of the third quarter, up from 66 in the previous quarter. In 2025, Synopsys, Inc. (NASDAQ:SNPS) generated total revenue of $7.05 billion, up approximately 15% from previous year. While we acknowledge the risk and potential of Synopsys, Inc. (NASDAQ:SNPS) 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 Synopsys, Inc. (NASDAQ:SNPS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Synopsys, Inc. (NASDAQ:SNPS) and shared the list of AI stocks in the spotlight for investors. 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.
