Popular (BPOP) Surged in Q2 as Results Exceeded Expectations

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, equity market performance experienced significant volatility, primarily due to changes in U.S. trade policies and escalating geopolitical tensions. The fund lagged behind the Russell Midcap Value Index in the second quarter, gaining 3.63% vs 5.35% for the index. Please review the fund's top 5 holdings to gain insight into their key selections for 2025.

In its second-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Fund highlighted stocks such as Popular, Inc. (NASDAQ:BPOP). Headquartered in Hato Rey, Puerto Rico, Popular, Inc. (NASDAQ:BPOP) is a banking and financial services company. The one-month return of Popular, Inc. (NASDAQ:BPOP) was 1.23%, and its shares gained 11.88% of their value over the last 52 weeks. On July 29, 2025, Popular, Inc. (NASDAQ:BPOP) stock closed at $114.82 per share, with a market capitalization of $7.801 billion.

Hotchkis & Wiley Mid-Cap Fund stated the following regarding Popular, Inc. (NASDAQ:BPOP) in its second quarter 2025 investor letter:

"Popular, Inc. (NASDAQ:BPOP), one of the largest banks in Puerto Rico, is a $65 billion asset bank with a dominant 45% market share of loans and deposits in the US territory. BPOP shares rose during the quarter after reporting earnings per share and net interest income results that were well ahead of consensus expectations. With its 45% market share in P.R. BPOP is a very well positioned and profitable bank with substantial excess capital. Trading at a low multiple of normal earnings per share (EPS) BPOP is an attractive value."

Popular, Inc. (NASDAQ:BPOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Popular, Inc. (NASDAQ:BPOP) at the end of the first quarter, which was 26 in the previous quarter. While we acknowledge the potential of Popular, Inc. (NASDAQ:BPOP) 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 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.