Will Alight (ALIT) be Able to Rebound?

Loomis Sayles, an investment management company, released its “Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities delivered strong results in the third quarter, mainly driven by easing tariff concerns, a pro-growth budget passed by the U.S. Congress, and anticipation of the Federal Reserve’s further rate cuts. The fund returned 6.21% in the quarter compared to 12.60% for the Russell 2000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Alight, Inc. (NYSE:ALIT). Alight, Inc. (NYSE:ALIT) is a leading technology-enabled services company. The one-month return of Alight, Inc. (NYSE:ALIT) was -15.45%, and its shares lost 71.20% of their value over the last 52 weeks. On December 24, 2025, Alight, Inc. (NYSE:ALIT) stock closed at $1.97 per share, with a market capitalization of $1.082 billion.

Loomis Sayles Small Cap Value Fund stated the following regarding Alight, Inc. (NYSE:ALIT) in its third quarter 2025 investor letter:

“The market leadership change toward “risk-on” and “low-quality” stocks is common around market pivot points and has continued into the third quarter of the year. Regarding our Fund, stock selection measures trailed the index given the style mismatch with our high quality approach. From an individual stock perspective Haemonetics Corporation, Alight, Inc. (NYSE:ALIT) and Kyndryl Holdings Incorporated detracted the most from performance.

Alight is a leading human capital solutions provider with a focus on helping large enterprise customers manage employee healthcare and retirement savings benefits. Historically, the company has enjoyed a loyal customer base, but customer service missteps in 2022 and 2023 led to increased client turnover. Over the past 18 months, significant changes to both the board of directors and company management, along with the sale of its payroll division, are expected to help Alight refocus on retaining existing clients and attracting new ones. While margins and cash flow have improved, sales growth slowed in the second quarter, raising concerns about the new management’s business strategy and the ability to drive organic growth. We attribute the weak quarter to several unique, fixable issues, aside from a possible slowdown in employee growth due to broader economic trends. Despite only minor changes to the company’s fundamentals, its valuation dropped sharply. We remain confident that as fundamentals improve, the stock’s share price will recover toward its intrinsic value.”

In another article, we covered Alight, Inc. (NYSE:ALIT) and shared the list of best technology penny stocks to buy. 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.