Loomis Sayles Small Cap Value Fund Exited Sandisk Corporation (SNDK) Due to Thesis Break

Loomis Sayles, an investment management company, released its “Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the second quarter amid tariff and trade concerns and geopolitical events. The fund returned 5.40% compared to 4.97% for the Russell 2000® Value Index due to positive allocation effects across multiple sectors.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Sandisk Corporation (NASDAQ:SNDK). Sandisk Corporation (NASDAQ:SNDK) is a data storage device and solutions company using NAND flash technology. The one-month return of Sandisk Corporation (NASDAQ:SNDK) was 30.28%, and its shares gained 35.51% of their value over the last three months. On September 03, 2025, Sandisk Corporation (NASDAQ:SNDK) stock closed at $53.01 per share, with a market capitalization of $7.729 billion.

Loomis Sayles Small Cap Value Fund stated the following regarding Sandisk Corporation (NASDAQ:SNDK) in its second quarter 2025 investor letter:

“Sandisk Corporation (NASDAQ:SNDK) is a leading manufacturer of flash memory data storage primarily for consumer electronic devices and the recent investment was predicated on a cyclical recovery in the company’s end markets. However, the potential negative consequences of tariffs on the consumer electronics market and data storage prices was determined to be an investment thesis break and we exited our relatively small position after a modest rally in the stock off the early April price level.”

Why Sandisk Corp. (SNDK) Surged On Tuesday?

Sandisk Corporation (NASDAQ:SNDK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Sandisk Corporation (NASDAQ:SNDK) at the end of the second quarter, which was 44 in the previous quarter. While we acknowledge the risk and potential Sandisk Corporation (NASDAQ:SNDK) 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 Sandisk Corporation (NASDAQ:SNDK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Sandisk Corporation (NASDAQ:SNDK) and shared the list of stocks that will benefit from AI. In addition, please check out our hedge fund investor letters Q2 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.