Loomis Sayles, an investment management company, released its “Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the second quarter amid tariff and trade concerns and geopolitical events. The fund returned 5.40% compared to 4.97% for the Russell 2000® Value Index due to positive allocation effects across multiple sectors. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Limbach Holdings, Inc. (NASDAQ:LMB). Limbach Holdings, Inc. (NASDAQ:LMB) is a building systems solution company. The one-month return of Limbach Holdings, Inc. (NASDAQ:LMB) was -6.08%, and its shares gained 75.27% of their value over the last 52 weeks. On September 03, 2025, Limbach Holdings, Inc. (NASDAQ:LMB) stock closed at $108.56 per share, with a market capitalization of $1.262 billion.
Loomis Sayles Small Cap Value Fund stated the following regarding Limbach Holdings, Inc. (NASDAQ:LMB) in its second quarter 2025 investor letter:
"Limbach Holdings, Inc. (NASDAQ:LMB) is a building and industrial mechanical contractor, with expertise in the installation, management and maintenance of HVAC (heating, ventilation and air conditioning), electrical, plumbing and control systems. The company is in year three of a new strategy to emphasize direct relationships with building owners, while de-emphasizing work with general contractors. The result has been higher margins, less competitive bidding, reduced sensitivity to macroeconomic conditions and new building projects, and a higher proportion of recurring maintenance and service contracts. At the time of our original purchase in May of 2024 Limbach was a $560M market cap company with only two boutique, sell-side analysts covering the stock. As the new strategy has steadily gained traction, investor interest has broadened, and the stock price has advanced. During the second quarter of 2025, the company released another strong quarterly earnings report with revenue growth accelerating as the increase in owner direct sales more than offset the modest decline in general contractor revenue. With the improvement in sales and earnings growth, the stocks valuation has increased, prompting us to reduce the position size during the quarter."
Limbach Holdings, Inc. (NASDAQ:LMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Limbach Holdings, Inc. (NASDAQ:LMB) at the end of the second quarter, which was 18 in the previous quarter. In the second quarter of 2025, Limbach Holdings, Inc. (NASDAQ:LMB) generated total revenue of $142.2 million compared to $122.2 million in Q2 2024. While we acknowledge the potential of Limbach Holdings, Inc. (NASDAQ:LMB) 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 Limbach Holdings, Inc. (NASDAQ:LMB) and shared a bullish thesis on the company. 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.