The London Company, an investment management company, released “The London Company Mid Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. After two years of robust earnings, US equities entered a correction territory in Q1. The portfolio declined 4.3% (-4.5%, net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Sector exposure was a headwind to the strategy’s relative performance in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, The London Company Mid Cap Strategy highlighted stocks such as Entegris, Inc. (NASDAQ:ENTG). Headquartered in Billerica, Massachusetts, Entegris, Inc. (NASDAQ:ENTG) offers materials and process solutions for the semiconductor and other high-technology industries. The one-month return of Entegris, Inc. (NASDAQ:ENTG) was 22.99%, and its shares lost 37.94% of their value over the last 52 weeks. On May 13, 2025, Entegris, Inc. (NASDAQ:ENTG) stock closed at $83.14 per share with a market capitalization of $12.59 billion.
The London Company Mid Cap Strategy stated the following regarding Entegris, Inc. (NASDAQ:ENTG) in its Q1 2025 investor letter:
“Increased: Entegris, Inc. (NASDAQ:ENTG) – Added to position following weakness in the shares. ENTG as been a strong long-term compounder, and is a market leader in the production of consumables used in the chip manufacturing process. It has been weak recently due to a combination of investors taking some gains in the name and a slowdown in wafer starts last calendar year. We maintain high conviction in ENTG and believe the company is well positioned for greater capex spending on semiconductor equipment in the years ahead. ENTG has a strong ROIC and consistent margin expansion. Any increase in node transitions leading to greater wafer starts (80% of ENTG sales are unit driven) and/or any improvement in the auto/industrial verticals should drive growth in the future.”
A technician in a specialized cleanroom suit, preparing a microcontamination control pipeline.
Entegris, Inc. (NASDAQ:ENTG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Entegris, Inc. (NASDAQ:ENTG) at the end of the fourth quarter compared to 42 in the third quarter. While we acknowledge the potential of Entegris, Inc. (NASDAQ:ENTG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered Entegris, Inc. (NASDAQ:ENTG) and shared the list of best stocks to buy according to D1 Capital’s Daniel Sundheim. In the Q4 2024 investor letter, the London Company Mid Cap Strategy stated that Entegris, Inc. (NASDAQ:ENTG) declined in the quarter, due to a sluggish market recovery. In addition, please check out our hedge fund investor letters Q1 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
