The London Company Income Equity Strategy’s Q4 2025 Investor Letter

The London Company, an investment management company, released its “Income Equity Strategy” fourth-quarter 2025 investor letter. The Fund’s Income Equity Portfolio declined 1.4% gross (-1.6% net) in the fourth quarter of 2025, underperforming the Russell 1000 Value Index, which gained 3.8%, as stock selection weighed on relative performance despite supportive sector exposure. U.S. equities extended their rally, with the Russell 3000 Index rising 2.4% and the S&P 500 posting similar gains, supported by strong earnings growth, additional Federal Reserve rate cuts, and easing trade tensions, though markets faced headwinds from softening labor markets, AI investment scrutiny, and a prolonged government shutdown. For the full year, the portfolio delivered +14.4% gross (+13.5% net) versus +15.9% for the benchmark, finishing in line with its long-term upside capture objectives despite a challenging backdrop for Quality, Yield, and Low Volatility factors. Management noted that value factors led returns during the quarter, while the portfolio’s lack of direct bank exposure and its tilt toward Quality and Yield-oriented stocks acted as headwinds in a market environment that favored higher-beta and more cyclically sensitive segments. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

A copy of The London Company Income Equity Strategy’s Q4 2025 investor letter can be downloaded here.