Spheria Asset Management, an investment management company, released its October 2025 “Spheria Global Opportunities Fund” investor letter. A copy of the letter can be downloaded here. The fund returned -1.7% in the third quarter, compared to a 5.6% return for the benchmark, MSCI World Small Cap Accumulation Index, and -1.6% in October, compared to 1.4% for the benchmark. The market is experiencing speculative characteristics, with high price-to-earnings multiples, and loss-making companies significantly outperforming fundamentally sound businesses. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its October 2025 investor letter, Spheria Asset Management highlighted stocks such as LPL Financial Holdings Inc. (NASDAQ:LPLA). Based in San Diego, California, LPL Financial Holdings Inc. (NASDAQ:LPLA) offers an integrated platform of brokerage and investment advisory services. The one-month return of LPL Financial Holdings Inc. (NASDAQ:LPLA) was -2.47%, and its shares gained 13.72% of their value over the last 52 weeks. On December 08, 2025, LPL Financial Holdings Inc. (NASDAQ:LPLA) stock closed at $368.50 per share, with a market capitalization of $29.49 billion.
Spheria Asset Management stated the following regarding LPL Financial Holdings Inc. (NASDAQ:LPLA) in its October 2025 investor letter:
“Over the month the largest contributors were owning Ferguson Enterprises (FERG US, +12%), owning LPL Financial Holdings Inc. (NASDAQ:LPLA) (LPLA US, +15%), and owning Swatch Group (UHR SW, +13%). LPL Financial provides independent financial advisers and institutions with a comprehensive and scalable platform to run their businesses, combining brokerage, advisory, and custodial services with integrated technology, compliance, research, and practice management support. Its model allows advisers to operate under their own brand while accessing LPL’s investment products, portfolio management tools, trading infrastructure, and back-office operations. It serves a vast network of 32,100 independent financial advisors in the US and oversees US$2.3 trillion of funds under administration (‘FUA’), which is materially more than the entire market cap of every listed company in Australia!
LPL’s stock rallied strongly following the release of its Q3 result at the end of the month, delivering solid organic FUA growth of +7%, strong underlying FUA retention of 98%, and demonstrating good early progress on integrating the Commonwealth Financial acquisition. Management also announced pricing actions to bring LPL more into line with competitors that will add 1ppt to future margin.
This was undoubtedly a great result with the strength of LPL’s value proposition evident in its continued market share gains of the growing US retail advisor-mediated market. In a world of growing financial complexity, regulations and digital transformation, LPL’s offer continues to win favour with independent advisers and institutions alike. Its earnings outlook is not without risk, as we increasingly cycle elevated markets (upon which most of its fees are based), and it still has work to do to realise the substantial synergies that it has committed to with the US$3.3b Commonwealth acquisition. But on just 14x FY26 EBIT and ample runway for growth, it is hard to fault, and it remains a core holding in the fund.”
LPL Financial Holdings Inc. (NASDAQ:LPLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held LPL Financial Holdings Inc. (NASDAQ:LPLA) at the end of the third quarter, which was 61 in the previous quarter. While we acknowledge the risk and potential of LPL Financial Holdings Inc. (NASDAQ:LPLA) 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 LPL Financial Holdings Inc. (NASDAQ:LPLA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered LPL Financial Holdings Inc. (NASDAQ:LPLA) and shared Baron FinTech Fund’s views on the company. 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.
