The London Company, an investment management company, released “The London Company Small Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a correction in 1Q25 due to macro risks, weak economic growth, and inflation. The fund declined 6.9% (-7.1%, net) compared to a 9.5% decrease in the Russell 2000 Index. The positive impact of stock selection contributed to the strategy’s relative performance in the quarter, partially offset by sector exposure. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as UniFirst Corporation (NYSE:UNF). UniFirst Corporation (NYSE:UNF) is a workplace uniforms and protective workwear clothing provider headquartered in Wilmington, Massachusetts. The one-month return of UniFirst Corporation (NYSE:UNF) was 7.15%, and its shares gained 12.61% of their value over the last 52 weeks. On May 12, 2025, UniFirst Corporation (NYSE:UNF) stock closed at $185.40 per share with a market capitalization of $3.479 billion.
The London Company Small Cap Strategy stated the following regarding UniFirst Corporation (NYSE:UNF) in its Q1 2025 investor letter:
“Increased: UniFirst Corporation (NYSE:UNF) – We added to UNF as we believe there is a high likelihood of margin improvement along with solid revenue growth in the years ahead. Separately, Cintas has made an offer to buy UNF at a higher price and could increase the bid in the future.”
A team of workers wearing the company’s protective wear, looking off into the dawn.
UniFirst Corporation (NYSE:UNF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held UniFirst Corporation (NYSE:UNF) at the end of the fourth quarter compared to 20 in the third quarter. In the fiscal second quarter of 2025, UniFirst Corporation (NYSE:UNF) generated $602.2 million in revenues, showcasing a 1.9% year-over-year improvement. While we acknowledge the potential of UniFirst Corporation (NYSE:UNF) 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 UniFirst Corporation (NYSE:UNF) and shared River Road Small Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
