Broyhill Asset Management, an investment advisor, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. 2025 witnessed extreme market concentration and a strong focus on artificial intelligence, leaving many sectors behind. The Portfolio, which has been significantly reshaped, now trades at a substantial discount relative to the broader market. The firm strongly believes it will benefit as market fundamentals improve. For the year, the portfolio declined by 1.4%, underperforming the MSCI ACWI’s 22.9% return. Momentum has dominated equity markets, with performance driven more by narratives than fundamentals. The firm admits the risks of being different but will remain contrarian and strategic, adapting more quickly to changing facts. In addition, please check the Portfolio’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Broyhill Asset Management highlighted Philip Morris International Inc. (NYSE:PM) as one of its largest contributors. Philip Morris International Inc. (NYSE:PM) is a tobacco company that offers cigarettes and smoke-free products. On February 25, 2026, Philip Morris International Inc. (NYSE:PM) stock closed at $189.80 per share. One-month return of Philip Morris International Inc. (NYSE:PM) was 6.70%, and its shares gained 23.23% over the past 52 weeks. Philip Morris International Inc. (NYSE:PM) has a market capitalization of $295.458 billion.
Broyhill Asset Management stated the following regarding Philip Morris International Inc. (NYSE:PM) in its fourth quarter 2025 investor letter:
“Our largest contributors were Philip Morris International Inc. (NYSE:PM), Dollar Tree, and IQVIA. Winners shared a common thread: durable businesses with identifiable catalysts that the market had mispriced. Phillip Morris was a top contributor for the second year in a row as the company continued to benefit from Zyn’s explosive growth. After years of skepticism, the trajectory of reduced-risk products became increasingly difficult to ignore. In our view, the stock’s recent performance reflects a narrowing gap between perception and fundamentals, validating our thesis that the transition away from combustible cigarettes would drive a re-rating for the industry leader.”
Philip Morris International Inc. (NYSE:PM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 82 hedge fund portfolios held Philip Morris International Inc. (NYSE:PM) at the end of the fourth quarter, compared to 90 in the previous quarter. While we acknowledge the risk and potential of Philip Morris International Inc. (NYSE:PM) 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 Philip Morris International Inc. (NYSE:PM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Philip Morris International Inc. (NYSE:PM) and shared a list of best low volatility dividend stocks to invest in. 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.
