Investment management company Vulcan Value Partners recently released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm does not focus on short-term outcomes, whether positive or negative, and believes it can enhance the potential long-term returns and reduce risk. In the quarter, the Large Cap Composite returned 7.0% net of fees and expenses, the Small Cap Composite returned 6.7% net, the Focus Composite returned 9.5% net, the Focus Plus composite returned 8.8% and the All-Cap Composite returned 8.1% net. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its second quarter 2025 investor letter, Vulcan Value Partners highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 10.12%, and its shares gained 2.96% of their value over the last 52 weeks. On July 17, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $184.70 per share, with a market capitalization of $2.234 trillion.
Vulcan Value Partners stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2025 investor letter:
"Alphabet Inc. (NASDAQ:GOOG) delivered strong results during the first quarter. We continue to monitor generative AI disruption risks and the ongoing antitrust cases against the company, and we will follow our discipline as we receive more information. The company’s stock rebounded during the second quarter."
A user's hands typing a search query into a Google Search box, emphasizing the company's search capabilities.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 164 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 174 in the previous quarter. In the first quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved a revenue of $90.2 billion, representing an increase of 12% from Q1 2024.While we acknowledge the potential of GOOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of top AI infrastructure stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.