Here's Why Littelfuse (LFUS) Rallied in Q2

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 Littelfuse, Inc. (NASDAQ:LFUS). Littelfuse, Inc. (NASDAQ:LFUS) designs, manufactures, and sells electronic components, modules, and subassemblies. The one-month return Littelfuse, Inc. (NASDAQ:LFUS) was 6.52%, and its shares lost 10.04% of their value over the last 52 weeks. On July 17, 2025, Littelfuse, Inc. (NASDAQ:LFUS) stock closed at $233.47 per share, with a market capitalization of $5.77 billion.

Vulcan Value Partners stated the following regarding Littelfuse, Inc. (NASDAQ:LFUS) in its second quarter 2025 investor letter:

"Littelfuse, Inc. (NASDAQ:LFUS) is an industrial manufacturing company focused on developing circuit protection, sensing, and power control products used to safeguard electrical systems in automotive, industrial, and electronics end markets. Its portfolio includes fuses, power semiconductors, relays, sensors, and surge protection devices that help prevent electrical damage and enhance reliability. Littelfuse provides mission critical products that are deeply embedded in secular growth markets such as industrial automation, electric vehicles, renewable energy, and electrical safety."

Littelfuse, Inc. (NASDAQ:LFUS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Littelfuse, Inc. (NASDAQ:LFUS) at the end of the first quarter, which was 31 in the previous quarter. Littelfuse, Inc. (NASDAQ:LFUS) reported first-quarter 2025 revenue of $554 million, a 4% increase year-over-year and a 3% organic growth, surpassing the upper end of the guidance range.  While we acknowledge the potential of LFUS 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 Littelfuse, Inc. (NASDAQ:LFUS) and shared the list of best electronic components 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.