The London Company Mid Cap Portfolio: Q3 2025 Performance Review

Instructions

This report provides an in-depth analysis of The London Company's Mid Cap portfolio performance during the third quarter of 2025, detailing market conditions, specific company contributions, and the firm's overarching investment philosophy.

Unlocking Value: Navigating Market Volatility with Resilient Investments

Navigating the Economic Landscape: A Quarter of Continuous Growth and Mixed Signals

The third quarter witnessed a sustained upward trend in U.S. stock markets, buoyed by a federal interest rate reduction, strong corporate earnings, and growing excitement surrounding artificial intelligence. Despite these positive drivers, economic indicators throughout the quarter presented a mixed picture, suggesting the economy largely maintained the momentum observed in the previous period.

Investment Strategy: Focusing on Durable Businesses for Enduring Prosperity

The London Company firmly believes that sustained wealth accumulation across various market cycles is best achieved by concentrating on robust, attractively valued companies. This approach prioritizes resilience and intrinsic worth, aiming to weather economic fluctuations and deliver consistent returns to investors.

SGI's Exceptional Performance: Gaining Ground in a Challenging Sector

Among the top performers in the portfolio was SGI, which demonstrated remarkable growth. The company successfully expanded its market presence within the bedding industry, even as the broader sector faced headwinds and overall weakness. This achievement highlights SGI's competitive strength and strategic execution.

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