Should You Hold Magnera Corporation (MAGN)?

Kingdom Capital Advisors, a private investment firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the portfolio recovered from the significant drawdowns from November 2024 to June 2025. The composite returned 20.78% (net of fees) in the quarter, compared to 12.39% for the Russell 2000 TR, 8.12% for the S&P 500 TR, and 9.01% for the NASDAQ 100 TR. The portfolio compounded at 21.06% (net of fees) since its inception vs. 4.60% for the Russell 2000 TR, 11.46% for the S&P 500 TR, and 13.48% for the NASDAQ 100 TR. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Kingdom Capital Advisors highlighted stocks such as Magnera Corporation (NYSE:MAGN). Magnera Corporation (NYSE:MAGN) manufactures and distributes non-woven and related products. The one-month return of Magnera Corporation (NYSE:MAGN) was -7.35%, and its shares lost 55.38% of their value over the last 52 weeks. On October 13, 2025, Magnera Corporation (NYSE:MAGN) stock closed at $10.21 per share, with a market capitalization of $363.476 million.

Kingdom Capital Advisors stated the following regarding Magnera Corporation (NYSE:MAGN) in its third quarter 2025 investor letter:

“While less of a drag on Q3, Magnera Corporation (NYSE:MAGN) stock price remains stuck in neutral. Their business remains stable in the U.S. and Europe, but tariffs have redirected trade flows and pressured their South American business. Management has been proactive on cost takeouts and capacity reductions across their portfolio, and we expect these efforts to shine through when they report their full year results in the coming months. MAGN closed one of their five South American plants, with more rationalization expected to follow. MAGN debt is termed out until 2029, and we expect signs of their business rebound to appear in the coming year’s results. We are happy with Management’s execution and believe the stock price will eventually follow.”

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Magnera Corporation (NYSE:MAGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Magnera Corporation (NYSE:MAGN) at the end of the second quarter, which was 41 in the previous quarter. While we acknowledge the risk and potential of Magnera Corporation (NYSE:MAGN) 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 Magnera Corporation (NYSE:MAGN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Magnera Corporation (NYSE:MAGN) and shared Loomis Sayles Small Cap Value Fund’s views on the company in the previous quarter. 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.