Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Longleaf experienced several environments throughout its experience in small-cap investing. This year, the underlying developments in the Fund’s holdings were more promising than the actual stock price returns when compared to the target of inflation plus 10% and the unusual performance of the Russell 2000. In Q4 2025, the Fund returned 1.13% compared to 2.40% for the Russell 3000 Index and 2.19% for the Russell 2000 Index. The Fund’s yearly return was 7.56% compared to 17.15% and 12.81% return for the indexes, respectively. In 2025, Southeastern demonstrated strong performance by protecting investments during market volatility, emphasizing the value of owning solid, free cash flow-generating companies over speculative fads. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks like Oscar Health, Inc. (NYSE:OSCR). Oscar Health, Inc. (NYSE:OSCR) is a US-based healthcare technology company that aims to simplify healthcare. On February 24, 2026, Oscar Health, Inc. (NYSE:OSCR) stock closed at $12.30 per share. One-month return of Oscar Health, Inc. (NYSE:OSCR) was -17.28%, and its shares lost 21.51% over the past 52 weeks. Oscar Health, Inc. (NYSE:OSCR) has a market capitalization of $3.66 billion.
Longleaf Partners Small-Cap Fund stated the following regarding Oscar Health, Inc. (NYSE:OSCR) in its fourth quarter 2025 investor letter:
“Oscar Health, Inc. (NYSE:OSCR) – Healthcare insurance company Oscar was a contributor for the year as above-market membership growth and sustained expense discipline reinforced confidence in the company’s positioning within the individual health insurance market. We exited our position in the third quarter as the P/V gap closed and industry risks became more apparent. The subsequent drama around the expiration of enhanced Affordable Care Act (ACA) subsidies underscores the ongoing policy uncertainty and challenges facing ACA-centric insurers like Oscar. Overall, the investment was successful for us, aided by management’s execution through a volatile industry backdrop.”
Oscar Health, Inc. (NYSE:OSCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Oscar Health, Inc. (NYSE:OSCR) at the end of the fourth quarter, up from 40 in the previous quarter. While we acknowledge the risk and potential of Oscar Health, Inc. (NYSE:OSCR) 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 Oscar Health, Inc. (NYSE:OSCR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Oscar Health, Inc. (NYSE:OSCR) and shared a list of best long term healthcare stocks to buy. 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.
