RGA Investment Advisors, an investment management company, has released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the market extended its recovery from the crash following Liberation Day. However, the market has been dominated by a handful of mega-cap stocks. The letter discussed the stock market concentration and where the firm sees potential in a concentrated environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, RGA Investment Advisors highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was -3.80%, and its shares gained 57.58% over the last 52 weeks. On December 22, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $311.33 per share, with a market capitalization of $3.758 trillion.
RGA Investment Advisors stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:
“Our largest holding is Alphabet Inc. (NASDAQ:GOOG) (formerly known as Google) and is in the Mag7, but jokingly has been called the “Lag7” at times. We have owned shares in Google (now Alphabet) since the very first day of 2012. At the time, the perceived threat from the mobile app world caused its P/E ratio to fall to a historic low. The current AI saga feels like “deja vu all over again”, with Alphabet’s trailing-twelve-month (TTM) P/E setting a new all-time low, even below the 2012 level.
Since initiating our position early in the firm’s history, Google has become our largest holding, even as the journey has included its share of difficult stretches. No one stretch has been harder to hold through than this latest stretch, as the stock faced dual overhangs from both the AI threat and the anti trust action brought by the US government. The anticipation, and eventual arrival, of regulatory action weighed heavily on Google, both competitively and in the market. Investors feared drastic outcomes, including the loss of Apple’s default search placement or even a forced separation of Chrome from the core business. This tension ended on September 2, 2025, when Judge Amit Mehta handed down his ruling on the remedies in United States v. Google LLC.
While some constraints were imposed, the worst-case scenarios were removed. Internally, we declared this “The Day Google Became an AI stock,” given how Google could largely continue business as usual and more importantly, how the company could absolve key personnel of time committed to this case and redirect the entire focus of the organization to winning in AI…” (Click here to read the full text)
Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 178 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $100 billion in revenue. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of AI stocks making waves on Wall Street. 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.
