Mosaic Co. (MOS) Surged on Varied Growth Signals

Ariel Investments, an investment management company, released its “Ariel Focus Fund” second-quarter investor letter.  A copy of the letter can be downloaded here. The second quarter of 2025 saw a period of extremes. Despite an initial market sell-off caused by the “Liberation Day” tariff announcement, the stock market recovered, supported by renewed interest in AI-related stocks, strong economic data, and solid corporate earnings. In the environment, the fund returned +4.75%, outperforming the Russell 1000 Value Index’s +3.79% gain but lagging behind the S&P 500 Index’s +10.94% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Ariel Focus Fund highlighted stocks such as The Mosaic Company (NYSE:MOS). The Mosaic Company (NYSE:MOS) produces and markets concentrated phosphate and potash crop nutrients. The one-month return of The Mosaic Company (NYSE:MOS) was 0.55%, and its shares gained 23.31% of their value over the last 52 weeks. On July 18, 2025, The Mosaic Company (NYSE:MOS) stock closed at $36.24 per share, with a market capitalization of $11.496 billion.

Ariel Focus Fund stated the following regarding The Mosaic Company (NYSE:MOS) in its second quarter 2025 investor letter:

"Producer and marketer of crop nutrients, The Mosaic Company (NYSE:MOS), also traded higher following the delivery of solid quarterly earnings results. The company expects phosphate markets to remain tight through 2025 supported by limited new supply, lower inventories and a reduction in imports driven by tariffs. MOS remains focused on cost discipline, improved free cash flow generation and maintaining an investment grade credit profile, while continuing to return significant capital to shareholders. Given management’s renewed discipline on capital allocation, we continue to believe the company is well positioned."

The Mosaic Company (NYSE:MOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held The Mosaic Company (NYSE:MOS) at the end of the first quarter, compared to 41 in the previous quarter. While we acknowledge the potential of The Mosaic Company (NYSE:MOS) 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 The Mosaic Company (NYSE:MOS) and shared the list of undervalued momentum stocks that are taking off. 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.