The London Company Small Cap Strategy sold Cable One (CABO) due to a Thesis Mismatch

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 Cable One, Inc. (NYSE:CABO). Cable One, Inc. (NYSE:CABO) is a US-based data, video, and voice services provider. The one-month return of Cable One, Inc. (NYSE:CABO) was 1.50%, and its shares lost 66.06% of their value over the last 52 weeks.  On July 28, 2025, Cable One, Inc. (NYSE:CABO) stock closed at $142.55 per share, with a market capitalization of $802.239 million.

The London Company Small Cap Strategy stated the following regarding Cable One, Inc. (NYSE:CABO) in its second quarter 2025 investor letter:

“Exited: Cable One, Inc. (NYSE:CABO) – Sale reflects heightened competitive activity and share losses to fixed wireless access. Our thesis about less competition in rural markets proved to be incorrect. We sold the remaining position following share weakness.”

Is Cable One, Inc. (CABO) the Underperforming Stock Targeted By Short Sellers?

A customer in their home enjoying premium channels, high-definition set-top boxes, and whole-home DVRs.

Cable One, Inc. (NYSE:CABO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Cable One, Inc. (NYSE:CABO) at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the risk and potential of Cable One, Inc. (NYSE:CABO) 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 Cable One, Inc. (NYSE:CABO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Cable One, Inc. (NYSE:CABO) and shared the list of best all-time low stocks to buy according to analysts. 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.