Should You Consider Adding Interparfums (IPAR) to Your Portfolio?

The London Company, an investment management company, released “The London Company Small Cap Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a significant downturn in the first quarter, U.S. equities saw a double-digit rise in the second quarter. The small-cap portfolio appreciated 2.7% (2.4% net) in the second quarter, lagging behind the Russell 2000 Index’s 8.5% gain. Sector allocation contributed to the relative performance, while stock selection was a headwind. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Inter Parfums, Inc. (NASDAQ:IPAR). Headquartered in New York, New York, Inter Parfums, Inc. (NASDAQ:IPAR) engages in the manufacturing and distribution of a range of fragrances and fragrance-related products. The one-month return of Interparfums, Inc. (NASDAQ:IPAR) was -6.93%, and its shares lost 10.70% of their value over the last 52 weeks. On July 28, 2025, Interparfums, Inc. (NASDAQ:IPAR) stock closed at $125.09 per share, with a market capitalization of $4.018 billion.

The London Company Small Cap Strategy stated the following regarding Interparfums, Inc. (NASDAQ:IPAR) in its second quarter 2025 investor letter:

“Initiated: Interparfums, Inc. (NASDAQ:IPAR) – IPAR is a fragrance company offering a portfolio of leading brands via long term licensing agreements. IPAR has licensing agreements with Montblanc, Jimmy Choo, Coach, Lanvin, Kate Spade, Lacoste, and others. IPAR boasts a net cash balance sheet, founder-led management, and high ROIC. IPAR’s competitive advantages include superior product development and brand equity. We believe IPAR is poised to benefit from growth in the fragrance market, driven by post-COVID consumer behavior shifts, premiumization (higher pricing), and new user penetration. Valuation is attractive (14x EV/EBITDA), reflecting uncertainty around consumer spending.”

13 Best Cheap Perfumes for Women That Smell Amazing

A shelf of luxurious perfumes in an upmarket department store surrounded by satisfied customers.

Interparfums, Inc. (NASDAQ:IPAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Interparfums, Inc. (NASDAQ:IPAR) at the end of the first quarter, which was 18 in the previous quarter. While we acknowledge the risk and potential of Interparfums, Inc. (NASDAQ:IPAR) 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 Interparfums, Inc. (NASDAQ:IPAR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Interparfums, Inc. (NASDAQ:IPAR) and shared the list of best mid cap FMCG stocks. Aristotle Capital Small Cap Equity Strategy also added Interparfums, Inc. (NASDAQ:IPAR) to its portfolio during Q2 2025.  In addition, please check out our hedge fund investor letters Q2 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.