Soumya Eswaran
3 min read
In This Article:
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 Skyworks Solutions, Inc. (NASDAQ:SWKS). Headquartered in Irvine, California, Skyworks Solutions, Inc. (NASDAQ:SWKS) designs, develops, and manufactures proprietary semiconductor products. The one-month return of Skyworks Solutions, Inc. (NASDAQ:SWKS) was 28.50%, and its shares lost 21.88% of their value over the last 52 weeks. On May 12, 2025, Skyworks Solutions, Inc. (NASDAQ:SWKS) stock closed at $73.04 per share with a market capitalization of $10.97 billion.
The London Company Mid Cap Strategy stated the following regarding Skyworks Solutions, Inc. (NASDAQ:SWKS) in its Q1 2025 investor letter:
"Skyworks Solutions, Inc. (NASDAQ:SWKS) - SWKS shares underperformed after it announced it would be losing sole control of an iPhone 17 component to a rival, cutting Apple revenue by -13%, though Apple still drives -70% of its sales. We still like SWKS for its tech strength, strong balance sheet, and capital allocation strategy."
A technician using a specialized tool to mount a wireless analog system on chip.
Skyworks Solutions, Inc. (NASDAQ:SWKS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Skyworks Solutions, Inc. (NASDAQ:SWKS) at the end of the fourth quarter which was 31 in the previous quarter. In the second quarter of fiscal 2025, Skyworks Solutions, Inc. (NASDAQ:SWKS) reported revenue of $953 million, surpassing the midpoint of guidance range. While we acknowledge the potential of Skyworks Solutions, Inc. (NASDAQ:SWKS) 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 Skyworks Solutions, Inc. (NASDAQ:SWKS) and shared the list of dividend stocks targeted by short sellers. Skyworks Solutions, Inc. (NASDAQ:SWKS) was the primary detractor to Vulcan Values' performance in Q1 2025. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
