Renaissance Large Cap Growth Strategy Sold Cintas (CTAS) Due to Decline in Fundamentals

Renaissance Investment Management, an investment management company, released its Q3 2025 “Large Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. Stock prices continued to rally in the third quarter, with the S&P 500 climbing to all-time highs during September. The Russell 1000 Growth returned 10.5% and the S&P 500 returned 8.1% in the quarter. However, the strategy underperformed both the Russell 1000 Growth benchmark and the S&P 500. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Renaissance Large Cap Growth Strategy highlighted stocks such as Cintas Corporation (NASDAQ:CTAS). Headquartered in Cincinnati, Ohio, Cintas Corporation (NASDAQ:CTAS) provides corporate identity uniforms and related business services. The one-month return of Cintas Corporation (NASDAQ:CTAS) was -7.47%, and its shares lost 9.55% of their value over the last 52 weeks. On October 27, 2025, Cintas Corporation (NASDAQ:CTAS) stock closed at $188.68 per share, with a market capitalization of $75.824 billion.

Renaissance Large Cap Growth Strategy stated the following regarding Cintas Corporation (NASDAQ:CTAS) in its third quarter 2025 investor letter:

“Conversely, we sold our long-term position in Cintas Corporation (NASDAQ:CTAS) following a deterioration in fundamental factors. Our original investment thesis has come to fruition, with Cintas growing both their Fire and First Aid segments into material contributors to revenue growth and operating margin expansion. However, more recently, revenue growth has decelerated, and margin expansion has peaked. Consequently, despite its history as a high-quality compounder since we purchased the stock in April 2019, we believe that the risk-reward is no longer advantageous, with valuation multiples near all-time highs along with a deteriorating employment environment. Until the employment environment reaccelerates, we believe that estimates for revenue growth may be too high as the company potentially faces weaker demand in the near to-intermediate term.”

Jim Cramer Says Cintas (CTAS) Stock Being “Up Here” is a “Terrific Sign”

Cintas Corporation (NASDAQ:CTAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 57 hedge fund portfolios held Cintas Corporation (NASDAQ:CTAS) at the end of the second quarter, compared to 58 in the previous quarter. In the first quarter of fiscal 2026, Cintas Corporation’s (NASDAQ:CTAS) total revenue grew 8.7% to $2.72 billion. While we acknowledge the risk and potential of Cintas Corporation (NASDAQ:CTAS) 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 Cintas Corporation (NASDAQ:CTAS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Cintas Corporation (NASDAQ:CTAS) and shared the list of stocks Jim Cramer offered insights on. 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.