Ruane, Cunniff LP, an investment adviser managing Sequoia Strategy, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. Sequoia Strategy returned 9% in Q4 compared to 2.7% for the S&P 500 Index. The Strategy delivered a return of 21.9% in 2025 versus 17.9% for the Index. In a year characterized by both strength and volatility, the Strategy outperformed the Index. The firm strives to invest in high-quality, fundamentally and financially strong businesses at reasonable prices. The Strategy is concentrated while it covers a wide range of sectors, business styles, and regions. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Sequoia Strategy highlighted stocks like The Charles Schwab Corporation (NYSE:SCHW). The Charles Schwab Corporation (NYSE:SCHW) is a multinational financial services company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. On March 27, 2026, The Charles Schwab Corporation (NYSE:SCHW) closed at $92.36 per share. One-month return of The Charles Schwab Corporation (NYSE:SCHW) was -3.28%, and its shares gained 17.99% over the past 52 weeks. The Charles Schwab Corporation (NYSE:SCHW) has a market capitalization of $164.118 billion.
Sequoia Strategy stated the following regarding The Charles Schwab Corporation (NYSE:SCHW) in its fourth quarter 2025 investor letter:
“Shares in The Charles Schwab Corporation (NYSE:SCHW) returned 37% in 2025. The company grew revenue by over 20% and earnings per share by nearly 50% for the year.
At the most fundamental level, Schwab’s business performance last year was less dramatic than these growth figures might suggest. The company gathered net new client assets at a nice mid-single-digit clip, which is broadly consistent with the sort of net new asset growth that has powered Schwab’s franchise over the decades. Market growth, which over time and through cycles provides an additional boost to Schwab’s asset growth, happened to provide a particularly significant boost this year. At year-end 2025, the company’s total client assets stood at $11.9 trillion, up approximately 18% versus prior year.
Last year, Schwab’s total revenue grew faster than its base of client assets did, thanks primarily to particularly robust growth in net interest income. Given the fixed cost nature of Schwab’s business, this additional net interest income and all the other additional revenue flowed through at high incremental margins, which is what drove the outsized growth in the company’s earnings in 2025…” (Click here to read the full text)
The Charles Schwab Corporation (NYSE:SCHW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 104 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the fourth quarter, up from 99 in the previous quarter. While we acknowledge the risk and potential of The Charles Schwab Corporation (NYSE:SCHW) 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 The Charles Schwab Corporation (NYSE:SCHW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Charles Schwab Corporation (NYSE:SCHW) and shared a list of long-term stock portfolio with best stocks for 20 years. In addition, please check out our hedge fund investor letters Q4 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.
