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The London Company Releases Q3 Investor Letters Detailing Returns and Portfolio Moves

Performance reflects an AI-led rally following a Fed rate cut.

Overview

  • The Large Cap Strategy returned 6.3% (6.2% net) versus 8.0% for the Russell 1000, while the Small Cap Strategy gained 1.9% (2.4% net) versus 12.4% for the Russell 2000.
  • Alphabet was a top performer on strong core results, faster uptake of AI offerings, favorable legal developments, disciplined cost actions, and growing Cloud and subscription revenue.
  • TE Connectivity contributed with benefits from AI-related spending and stronger margins despite mixed demand in other markets.
  • NewMarket advanced as lower oil reduced input costs, a defense acquisition supported production, and the market approved of using cash flow to repay debt.
  • The firm exited Bruker after sustained underperformance and sector headwinds, and it initiated Equitable Holdings following a Venerable reinsurance deal that released nearly $2 billion of excess capital.