| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.5% | 0.2% | 8.3% |
| 2025 | 2024 |
|---|---|
| 8.3% | 15.3% |
The London Company Large Cap portfolio returned 0.2% net in Q4 2025, underperforming the Russell 1000 Index which gained 2.4%. The quarter was supported by strong earnings growth, Fed rate cuts, and extended US-China trade truce, though headwinds emerged from AI investment scrutiny and labor market softening. Value outperformed Growth across market caps, while the manager's quality-focused approach faced headwinds as volatility factors led performance. Top contributors included Alphabet on strong AI adoption, FedEx on improved results, and Chubb reaching all-time highs. Key detractors were Fiserv, which was sold after guidance cuts and management changes, NewMarket on global softness, and BlackRock on acquisition concerns. The manager made strategic additions to Norfolk Southern, Chubb, and Republic Services while trimming Alphabet. Looking ahead, they expect a mixed backdrop with late-cycle dynamics emerging but believe the environment is becoming more conducive to fundamentals-based investing, where quality attributes like earnings growth, dividends, and balance-sheet strength will matter more than multiple expansion.
The London Company focuses on investing in conservative, low-beta, large-cap equities with above-average downside protection, seeking profitable, financially stable, quality companies that consistently generate free cash flow, high returns on unleveraged operating capital, trade at rational valuations, and are run by shareholder-oriented management.
The manager expects the economic and policy backdrop to remain characterized by a mix of support and uncertainty, with late-cycle dynamics becoming more evident. They believe caution is prudent given crosscurrents including labor market softening and trade policy fluidity. From an equity market perspective, they anticipate the environment becoming more conducive to broader leadership and a return to fundamentals, where quality attributes like earnings growth, dividends, and balance-sheet strength matter more than valuation multiple expansion.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 21 2026 | 2025 Q4 | BLK, CB, FDX, FI, GOOG, NEU, NSC, RSG | dividends, financials, healthcare, large cap, Quality, technology, value |
GOOG FDX CB FI NEU BLK NSC RSG |
The manager emphasizes investing in profitable, financially stable, quality large-cap companies with high returns on unleveraged operating capital, strong cash generation, and conservative leverage. Quality… |
| Oct 28 2025 | 2025 Q3 | BRKR, EQH, FI, GOOG, NEU, ODFL, PGR, TEL | Artificial Intelligence, earnings, financials, Quality Investing, value |
GOOG EQH GOOG EQH |
The portfolio modestly underperformed the benchmark as concentration in megacaps and volatility favored speculative names. Strong contributions from Alphabet and TE Connectivity reflected AI adoption… |
| Jul 20 2025 | 2025 Q2 | BRK/B, FI, NEU, PGR, SCHW, TEL | cash flows, downside protection, large cap, Quality, valuation |
NEU TEL SCHW BRK.B PGR |
The commentary highlights large-cap businesses with durable cash flows, conservative leverage, and strong competitive positions. A focus on quality and downside protection may lag in… |
| Apr 15 2024 | 2025 Q1 | BLK, BRK/B, BRKR, ENTG, FDX, GOOG, HD, ODFL, PGR, RSG | - | - | - |
| Jan 7 2025 | 2024 Q4 | - | - | - | - |
| Oct 2 2024 | 2024 Q3 | BLK, CB, CSCO, FDX, FI, GOOG, ORLY, PGR, SCHW, TEL | - | - | - |
| Jul 22 2024 | 2024 Q2 | ALB, APD, GOOG, MLM, NEU, NSC, ODFL, TEL, TXN | - | - | - |
| May 13 2024 | 2024 Q1 | AAPL, APD, BRK/B, MLM, NSRGY, PGR, SBUX | - | - | - |
| Jan 23 2024 | 2023 Q4 | ALB, BLK, CVX, FDX, MLM, SCHW | - | - | - |
| Oct 31 2023 | 2023 Q3 | ALB, GOOG, MLM, NEU, NSC, ODFL | - | - | - |
| Jul 19 2023 | 2023 Q2 | ALB, KMX, MLM, ORLY, PGR, RSG, SBUX, TXN, VZ | - | - | - |
| Apr 20 2023 | 2023 Q1 | BLK, CVX, FDX, GOOG, NSC, ODFL, SCHW, STOR | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DividendsDividend-paying companies lagged non-dividend-paying companies by more than 50%. On average, portfolio holdings raised their dividends 9% over 2025, in line with their earnings growth. The top three dividend raisers were Amphenol (55%), Cintas (15%), and Verisk Analytics (15%). |
Dividend Growth Income Yield Distribution Payout |
QualityThe portfolio has shifted toward higher quality businesses with better profitability, lower leverage, and less volatile earnings. Quality stocks underperformed significantly in 2025, creating attractive entry points for value investors. The manager maintains price discipline while seeking quality companies trading at discounts to intrinsic value. |
Quality Profitability Leverage Earnings | |
ValueBlue Tower focuses on value investing with international diversification. The manager notes that the valuation spread between cheap and expensive stocks is one of the greatest in market history, creating a favorable environment for their value-oriented approach. |
Value International Cheap Expensive Valuation | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
FinancialsEuropean banks have been rehabilitated after years in purgatory, with returns of 77% in 2025. Return on equity has normalized above 12% following exit from ultra-low rates, while capital positions have been rebuilt. However, supportive factors are well-appreciated by markets, reflected in significant valuation re-rating. |
Banks Return On Equity Interest Rates Capital Valuations | |
QualityThe portfolio has shifted toward higher quality businesses with better profitability, lower leverage, and less volatile earnings. Quality stocks underperformed significantly in 2025, creating attractive entry points for value investors. The manager maintains price discipline while seeking quality companies trading at discounts to intrinsic value. |
Quality Profitability Leverage Earnings | |
| 2025 Q2 |
QualityThe portfolio has shifted toward higher quality businesses with better profitability, lower leverage, and less volatile earnings. Quality stocks underperformed significantly in 2025, creating attractive entry points for value investors. The manager maintains price discipline while seeking quality companies trading at discounts to intrinsic value. |
Quality Profitability Leverage Earnings |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 21, 2026 | Fund Letters | Brian Campbell | FDX | FedEx Corporation | Industrials | Air Freight & Logistics | Bull | New York Stock Exchange | cashflow, Costcutting, Logistics, Margins, Pricing | Login |
| Jan 21, 2026 | Fund Letters | Brian Campbell | CB | Chubb Limited | Financials | Property & Casualty Insurance | Bull | New York Stock Exchange | capital returns, combined ratio, Defensiveness, Insurance, underwriting | Login |
| Jan 21, 2026 | Fund Letters | Brian Campbell | FI | Fiserv, Inc. | Information Technology | Transaction & Payment Processing Services | Bear | New York Stock Exchange | Credibility, execution risk, Payments, Slowdown, turnaround | Login |
| Jan 21, 2026 | Fund Letters | Brian Campbell | NEU | NewMarket Corporation | Materials | Specialty Chemicals | Bull | New York Stock Exchange | balance sheet, cashflow, Cyclicality, energy, specialty chemicals | Login |
| Jan 21, 2026 | Fund Letters | Brian Campbell | BLK | BlackRock, Inc. | Financials | Asset Management | Bull | New York Stock Exchange | Alternatives, asset management, capital returns, ETFs, scale | Login |
| Jan 21, 2026 | Fund Letters | Brian Campbell | NSC | Norfolk Southern Corporation | Industrials | Rail Transportation | Bull | New York Stock Exchange | Cyclicality, insider buying, railroads, recovery, valuation | Login |
| Oct 28, 2025 | Fund Letters | Brian Campbell | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Cost control, diversification, growth, innovation | Login |
| Jan 21, 2026 | Fund Letters | Brian Campbell | RSG | Republic Services, Inc. | Industrials | Environmental & Facilities Services | Bull | New York Stock Exchange | cashflow, Defensiveness, insider buying, Pricing power, waste management | Login |
| Oct 28, 2025 | Fund Letters | Brian Campbell | EQH | Equitable Holdings | Financials | Diversified Financial Services | Bull | NYSE | asset management, buybacks, Capital, dividend, financials, Reinsurance, valuation | Login |
| Oct 28, 2025 | Fund Letters | Brian Campbell | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Cost control, diversification, growth, innovation | Login |
| Oct 28, 2025 | Fund Letters | Brian Campbell | EQH | Equitable Holdings | Financials | Diversified Financial Services | Bull | NYSE | asset management, buybacks, Capital, dividend, financials, Reinsurance, valuation | Login |
| Jul 20, 2025 | Fund Letters | Brian Campbell | NEU | NewMarket Corporation | Materials | Chemicals | Bull | New York Stock Exchange | buybacks, Chemicals, Defense, deleveraging, tariffs | Login |
| Jul 20, 2025 | Fund Letters | Brian Campbell | TEL | TE Connectivity Ltd. | Information Technology | Electronic Components | Bull | New York Stock Exchange | AI demand, buybacks, cash flow, Connectivity, Electronic Components | Login |
| Jul 20, 2025 | Fund Letters | Brian Campbell | SCHW | The Charles Schwab Corporation | Financials | Investment Banking & Brokerage | Bull | New York Stock Exchange | balance sheet, Brokerage, Cash Sorting, Moat, Net New Assets | Login |
| Jul 20, 2025 | Fund Letters | Brian Campbell | BRK.B | Berkshire Hathaway Inc. Class B | Financials | Multi-Sector Holdings | Bear | New York Stock Exchange | balance sheet, conglomerate, Defensiveness, Factor Rotation, underwriting | Login |
| Jul 20, 2025 | Fund Letters | Brian Campbell | PGR | The Progressive Corporation | Financials | Property & Casualty Insurance | Bear | New York Stock Exchange | Auto Insurance, capital returns, growth, Margins, underwriting | Login |
| Jan 21, 2026 | Fund Letters | Brian Campbell | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, capital allocation, cloud, Margins | Login |
| TICKER | COMMENTARY |
|---|---|
| BLK | We exited our positions in Alphabet, BlackRock and Tokyo Electron as their stock prices had reached levels in excess of their intrinsic value. |
| CB | Chubb is one of our core property & casualty insurance holdings. It is well-diversified across products and geographies. The company has consistently generated returns on equity comfortably ahead of the industry owing to a combination of running advantaged lines of business with a disciplined underwriting and operating culture. Pricing trends in the insurance markets have generally been strong in recent years, and consequently Chubb has been earning returns on tangible equity in the low 20s. While competitive forces may in time push that back toward a normalized level a few points lower, Chubb we believe would still be valued at 10–11x earnings looking out a few years. |
| FDX | As strong as the banks were, parcel delivery companies were even stronger, with FedEx Corp (FDX) at +23% pacing the Fund for the quarter. FedEx delivered a sizable beat-and-raise quarterly performance, and higher contracted rates appear to be sticking, even as fuel prices have declined. |
| FI | Fiserv was a material detractor in the quarter. This is a company that we have discussed extensively over the past few years as we owned it successfully from 2023 until 1Q 2025. However, last quarter was a different story. On the 3Q 2025 earnings call, the new CEO and CFO unwound the former team's guidance for the year. They also explained that the team uncovered aggressive tactics used to boost short-term revenue at the expense of long-term customer relationships and, therefore, earnings. As such, management explained that it would be temporarily backing off of the steady organic revenue compounding, earnings margin expansion, and free cash flow generation that investors had grown accustomed to in order to reinvest in the business and reposition Fiserv for higher quality, long-term growth through entrenched customer relationships. While this news was unexpected, we agree that this course of action is in the best interests of the business based on what we've learned. Despite all of these disruptions, Fiserv still expects to grow revenues throughout its reinvestment period and generate substantial free cash flow, because Fiserv remains a strong business with high recurring revenues and essential offerings across its end markets. We are excited to own Fiserv at these levels, as we believe substantial price compounding will be in order over the coming years. |
| GOOG | Alphabet's Q4 performance marks a significant triumph, characterized by a rare beat and raise narrative across all critical business segments. The company's recent earnings report was driven by a balanced contribution from its legacy Search and YouTube divisions, with Google Cloud emerging as the standout performer. Cloud's revenue growth reached an impressive 34%, and it boasts an extraordinary $155 billion backlog, a nearly double increase compared to the previous quarter. |
| NEU | NEU was a weaker performer as a softer global environment (mostly China's slowdown) pressured Petroleum Additives volumes and margins. The Specialty Materials business had lumpy demand, which weighed on results. Lower oil prices reduced operating leverage. Despite near-term pressure, we continue to view NEU as a strong business with disciplined capital allocation, balance sheet flexibility, and strong cash flow generation. |
| NSC | Added to our NSC position after the shares pulled back despite the pending UNP deal. It is currently trading at a discount to the value of the UNP deal and the rail industry is out of favor. While most recent earnings were softer than expected, NSC has shown signs of improving its execution and volumes should return incrementally. Lastly, the chairman stepped up and purchased shares in the open market, which we view as a sign of conviction in the business. |
| RSG | Addition reflects attractive opportunity to increase our exposure in a defensive and resilient business model. The waste management industry has lagged the broader market this year due to cyclical volume weakness in construction, demolition, and the industrial sector. Despite these short-term headwinds, RSG continues to exhibit operational strength through pricing power and cost controls, which have led to stronger margins. We remain attracted to the high-quality, essential business with strong and stable cash flow generation. Recently, insiders have bought shares in the open market, which we view as an additional data point to the attractive valuation. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
