Hotchkis & Wiley, an investment management company, released its fourth-quarter 2025 investor letter for the “Hotchkis & Wiley Large Cap Disciplined Value Fund.” A copy of the letter can be downloaded here. In Q4 2025, the S&P 500 returned 2.7%, bringing its yearly gains to 17.9%. Since the 2007-08 financial crisis, the Index has increased tenfold, achieving positive results in 15 of 17 years. However, high valuations have made investors cautious, particularly with the returns concentrated in a few stocks. Excluding the “Magnificent 7,” the forward PE of the S&P 500 Index aligns with historical averages. In 2025, information technology and communication services led performance, but results varied significantly within those sectors. The firm views the potential of certain software companies to be very attractive. In this environment, the Fund outperformed the Russell 1000 Value Index both in Q4 and over the full calendar year. Positive stock selection contributed to the Fund’s relative performance. Please review the Fund’s top 5 holdings to gain insight into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value Fund highlighted FedEx Corporation (NYSE:FDX) as one of its leading individual contributors. Founded in 1971, FedEx Corporation (NYSE:FDX) is a leading transportation, e-commerce, and business services company. The one-month return of FedEx Corporation (NYSE:FDX) was 9.14%, and its shares gained 20.79% of their value over the last 52 weeks. On January 29, 2026, FedEx Corporation (NYSE:FDX) stock closed at $319.93 per share, with a market capitalization of $75.489 billion.
Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its fourth quarter 2025 investor letter:
“FedEx Corporation (NYSE:FDX) provides parcel delivery and freight services to nearly every address in the U.S. and serves a vast majority of the world’s GDP. The company operates one of the largest express logistics and freight networks globally. In recent years, FedEx has faced multiple challenges: a mix shift toward lower-margin business-to-consumer volumes has weighed on profitability, integration difficulties in its international express segment have continued, and soft global economic conditions have dampened demand across all business lines. While these challenges are material, they are likely to be transitory. We believe FedEx retains durable competitive advantages in its core businesses, and margin recovery is expected as integration improves, cost discipline strengthens, and the pricing environment stabilizes. Under new leadership, the company is pursuing operational efficiencies, reducing capital intensity, and prioritizing returns to shareholders. In addition to its brand and competitive position, we believe FedEx has significant asset backing that provides downside protection. Shares rose 23% over the quarter following earnings growth that was better than expected, and positive comments from management on quarterly guidance at an industry conference, which helped alleviate investor concerns around a muted holiday demand environment.”
FedEx Corporation (NYSE:FDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 60 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the third quarter, compared to 67 in the previous quarter. In the second quarter of fiscal 2026, FedEx Corporation’s (NYSE:FDX) revenue increased by 7% compared to the previous year, driven by strong yield and volume in its US domestic package services. While we acknowledge the risk and potential of FedEx Corporation (NYSE:FDX) 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 FedEx Corporation (NYSE:FDX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FedEx Corporation (NYSE:FDX) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
