Kovitz Investment Group Partners, LLC, an investment management company, released its “Kovitz Core Equity Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the strategy returned 7.9% compared to the S&P 500’s 10.9% return. Equity markets saw notable volatility after the President’s “Liberation Day” tariff announcement on April 2nd. The S&P 500 dropped 11% initially but later rallied 25% in the quarter after the tariffs were postponed by 90 days on April 9th. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025.
In its second-quarter 2025 investor letter, Kovitz Core Equity Strategy highlighted stocks such as Floor & Decor Holdings, Inc. (NYSE:FND). Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring and related accessories. The one-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -1.11%, and its shares lost 14.43% of their value over the last 52 weeks. On August 5, 2025, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $82.56 per share, with a market capitalization of $8.891 billion.
Kovitz Core Equity Strategy stated the following regarding Floor & Decor Holdings, Inc. (NYSE:FND) in its second quarter 2025 investor letter:
“Floor & Decor Holdings, Inc. (NYSE:FND) operates a chain of ~250 warehouse stores focused exclusively on hard surface flooring and wall covering, decorative accessories, and installation materials. The company has curated a global network of ~250 suppliers from which they directly source product, removing multiple steps in the supply chain between end customer and manufacturer at a typical flooring retailer. This direct-sourcing model combined with their large format stores allows Floor & Décor to offer more attractive pricing, a larger assortment of flooring options across a wide range of price points, and keep job-sized inventory in stock, which is especially attractive to professional installers. The current environment is a challenging one for the company as low single-family home turnover and high interest rates have depressed remodel activity while tariffs may increase the price of flooring projects. Impressively, the company has demonstrated significant supply chain flexibility, reducing its China cost-of-goods-sold exposure from 50% in 2018 to an expected low to mid-single-digit percentage by the end of 2025. While the near future is likely to be tumultuous for the company, we believe homeowners will maintain the desire to improve their homes once we emerge from the current economic cycle and that Floor & Décor will have further improved their scale and selection advantages once that occurs.”
An overhead view of a website displaying the multiple options of flooring products available for purchase.
Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the first quarter, which was 34 in the previous quarter. Floor & Decor Holdings, Inc.’s (NYSE:FND) sales for the second quarter grew 7.1% to $1.214 billion. While we acknowledge the risk and potential of Floor & Decor Holdings, Inc. (NYSE:FND) 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 Floor & Decor Holdings, Inc. (NYSE:FND) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Floor & Decor Holdings, Inc. (NYSE:FND) and shared the list of best stocks to buy according to Abdiel Capital Advisors. 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.
