Rewey Asset Management’s Q2 Top Performer: Ducommun (DCO)

Rewey Asset Management, an investment management company, released its “RAM Smid Composite” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The composite increased 6.11% in Q2 2025, slightly trailing a 7.29% gain for the benchmark Russell 2500 Value Total Return Index. Year-to-date, the composite returned -1.29% vs. 1.03% for the benchmark. The firm views the quarter as in line and has confidence in the Smid value sector as it approaches the second half of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Rewey Asset Management highlighted stocks such as Ducommun Incorporated (NYSE:DCO). Headquartered in Costa Mesa, California, Ducommun Incorporated (NYSE:DCO) provides engineering and manufacturing services to the aerospace, defense, industrial, and medical industries. The one-month return of Ducommun Incorporated (NYSE:DCO) was 1.48%, and its shares gained 44.34% of their value over the last 52 weeks. On September 12, 2025, Ducommun Incorporated (NYSE:DCO) stock closed at $93.03 per share, with a market capitalization of $1.388 billion.

Rewey Asset Management stated the following regarding Ducommun Incorporated (NYSE:DCO) in its second quarter 2025 investor letter:

“Ducommun Incorporated (NYSE:DCO), highlighted in our 1Q25 letter, was our top performer in 2Q25, rising 42.39%. Our thesis on DCO and the Commercial Aerospace & Defense sector remains intact, supported by strong order flows and production from Boeing and Airbus. Additionally, European NATO countries have committed to increasing military spending to 5% of GDP over time. Ducommun also continues to improve margins, progressing toward its Vision 2027 targets alongside a robust revenue outlook.”

Ducommun Incorporated (NYSE:DCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held Ducommun Incorporated (NYSE:DCO) at the end of the second quarter, compared to 15 in the previous quarter. While we acknowledge the risk and potential of Ducommun Incorporated (NYSE:DCO) 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 Ducommun Incorporated (NYSE:DCO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Ducommun Incorporated (NYSE:DCO) and shared a list of best small cap defense stocks to buy according to hedge funds. In its Q1 2025 investor letter, Rewey Asset Management highlighted Ducommun Incorporated (NYSE:DCO) as a compelling investment opportunity with potential to deliver compounded returns over years. 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.