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 such as NewMarket Corporation (NYSE:NEU). Headquartered in Richmond, Virginia, NewMarket Corporation (NYSE:NEU) manufactures and distributes petroleum additives. On February 17, 2026, NewMarket Corporation (NYSE:NEU) stock closed at $599.80 per share. One-month return of NewMarket Corporation (NYSE:NEU) was 6.95%, and its shares are up 10.12% over the past twelve months. NewMarket Corporation (NYSE:NEU) has a market capitalization of $5.637 billion.
The London Company Large Cap Strategy stated the following regarding NewMarket Corporation (NYSE:NEU) in its fourth quarter 2025 investor letter:
“NewMarket Corporation (NYSE:NEU)– NEU was a weaker performer as a softer global environment pressured Petroleum Additives volumes and margins and the Specialty Materials business had lumpy demand, which weighed on results. Lower oil prices reduced operating leverage and drove an unusual restructuring charge as industry capacity increased. Despite near-term pressure, we continue to view NEU as a strong business with disciplined capital allocation, balance sheet flexibility, and strong cash flow generation.”
NewMarket Corporation (NYSE:NEU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge fund portfolios held NewMarket Corporation (NYSE:NEU) at the end of the third quarter, compared to 22 in the previous quarter.While we acknowledge the risk and potential of NewMarket Corporation (NYSE:NEU) 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 NewMarket Corporation (NYSE:NEU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NewMarket Corporation (NYSE:NEU) and shared The London Company Large Cap Strategy’s views on the company last 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.
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Disclosure: None. This article is originally published at Insider Monkey.
