Rothschild & Co Wealth Management, an investment management company, released its LongRun Equity strategy third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm is a committed long-term business owner, focused on a portfolio of high-quality companies. The strategy returned +3.9 % (in EUR, unhedged) in the third quarter, underperforming its benchmark’s 7.5% return. Since its inception, the strategy has delivered an annualized return of 10% compared to 11% for the global equities. The firm’s selection of highly profitable quality companies was not rewarded by the market, which instead focused on riskier, growth-focused, and often unprofitable companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.
In its third-quarter 2025 investor letter, Rothschild & Co LongRun Equity highlighted stocks such as Amazon.com, Inc. (NASDAQ:AMZN). Amazon.com, Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores. The one-month return of Amazon.com, Inc. (NASDAQ:AMZN) was 1.41%, and its shares gained 1.45% of their value over the last 52 weeks. On December 24, 2025, Amazon.com, Inc. (NASDAQ:AMZN) stock closed at $232.38 per share, with a market capitalization of $2.484 trillion.
Rothschild & Co LongRun Equity stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2025 investor letter:
“During the third quarter, we initiated two new positions –Amazon.com, Inc. (NASDAQ:AMZN) and Synopsys – financed through a reduction in cash holdings, a partial sale of Alphabet, and a full exit from Accenture.
Amazon is a company we have followed for some time, particularly, though not exclusively, because of Amazon Web Services (AWS), the group’s highly profitable cloud computing division. The share price had recently lagged, as the market viewed AWS’s growth as disappointing and additional concerns arose over potential tariff effects. In our view, however, there is a difference between falling behind and taking the time required for sustainable execution. We expect partnerships such as that with Anthropic, as well as the monetisation of generative AI capabilities, to support margin improvements at AWS. In addition, we see untapped potential in Amazon’s own generative AI technology, which, in our view, has received too little attention so far – especially regarding its potential to enhance margins across the group.
We do not consider Amazon a turnaround story (we generally do not invest in such cases) but rather an undervalued quality company. Beyond its cloud business, we also see attractive prospects in retail: investments in logistics should drive greater economies of scale over time, while the continued expansion of Prime as an attractive membership model is set to accelerate retail revenue growth, particularly outside the US. This is a good example of the network effects on which our investment approach consistently relies.”
Amazon.com, Inc. (NASDAQ:AMZN) is in first position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 332 hedge fund portfolios held Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter, which was 325 in the previous quarter. In Q3 2025, Amazon.com, Inc. (NASDAQ:AMZN) reported $180.2 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates. While we acknowledge the risk and potential of Amazon.com, Inc. (NASDAQ:AMZN) 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 Amazon.com, Inc. (NASDAQ:AMZN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Amazon.com, Inc. (NASDAQ:AMZN) and shared Janus Henderson Global Technology and Innovation Fund’s views on the company. 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.
