Third Point Management, a New York-based investment advisor, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Third Point Offshore Fund returned nearly -7.5% in the second quarter of 2025. The second quarter started with “Liberation Day,” which spooked markets. By the end of the quarter, the sentiment shifted positively, and markets rebounded. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Third Point Management highlighted stocks such as Casey’s General Stores, Inc. (NASDAQ:CASY). Casey’s General Stores, Inc. (NASDAQ:CASY) operates convenience stores under the Casey’s and Casey’s General Store names. The one-month return of Casey’s General Stores, Inc. (NASDAQ:CASY) was 1.07%, and its shares gained 40.56% of their value over the last 52 weeks. On August 1, 2025, Casey’s General Stores, Inc. (NASDAQ:CASY) stock closed at $522.78 per share, with a market capitalization of $19.437 billion.
Third Point Management stated the following regarding Casey’s General Stores, Inc. (NASDAQ:CASY) in its second quarter 2025 investor letter:
“During the quarter, we continued adding to a new long position in Casey’s General Stores, Inc. (NASDAQ:CASY). At ~2,900 locations, Casey’s is the third largest convenience store chain in the US by store count. More importantly, it is the fifth largest pizza chain in the country. It is a “boring” business to some, but there is an art to boring – we believe the returns and their consistency have been exceptional and stem from a quirky counter-positioning of the business. When a company chooses not to do the easy thing, it is often a powerful signal that something special is at work. Selling gas and cigarettes is easy. Selling fresh food at scale as successfully as Casey’s is not. Figuring out food creates a powerful feedback loop – Casey’s earns more profit dollars per visit, enabling them to price fuel at a discount to independent gas stations and pizza at a discount to competing QSRs. Consumers save on both purchases, and the result is a brand beloved by a loyal customer base, whose Net Promoter Scores look nothing like the rest of the industry.
How has Casey’s solved for food? We attribute their success to differentiated employee retention and approaching the business like a community-centric restaurant that consumers trust to feed their families. Annualized labor churn rates north of 100% have long plagued convenience stores – it is hard to retain employees, let alone incentivize them to sell perishables and run open air kitchens. Not so with Casey’s. Their stores have 40% more staff than your typical gas station and they have used this as an opportunity to offer viable career paths on a store-by-store basis throughout rural America. We have eaten our fair share of Casey’s brisket pizza, and in our store tours we were impressed by the consistency of quality and employee and customer loyalty that they have created at the store level. A recent test roll-out of chicken wings has seen high satisfaction scores and we believe the company is on its way to a system wide rollout of wings that has the potential to meaningfully increase sales densities.”
A close-up of a hand selecting a food or beverage item from a store shelf.
Casey’s General Stores, Inc. (NASDAQ:CASY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Casey’s General Stores, Inc. (NASDAQ:CASY) at the end of the first quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of Casey’s General Stores, Inc. (NASDAQ:CASY) 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 Casey’s General Stores, Inc. (NASDAQ:CASY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Casey’s General Stores, Inc. (NASDAQ:CASY) and shared the list of stocks Jim Cramer recently discussed. 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.
