Champion Homes (SKY) Fell Due to Softened Housing Market

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 Champion Homes, Inc. (NYSE:SKY). Champion Homes, Inc. (NYSE:SKY) engages in the manufacturing and sales of mobile homes and other manufactured housing. The one-month return of Champion Homes, Inc. (NYSE:SKY) was 11.14%, and its shares lost 14.55% of their value over the last 52 weeks. On September 03, 2025, Champion Homes, Inc. (NYSE:SKY) stock closed at $76.85 per share, with a market capitalization of $4.343 billion.

Loomis Sayles Small Cap Value Fund stated the following regarding Champion Homes, Inc. (NYSE:SKY) in its second quarter 2025 investor letter:

"Champion Homes, Inc. (NYSE:SKY) is a leading manufactured home builder and retailer offering an affordable housing product at a time when overall home affordability is close to all-time lows. We are attracted to the company’s low capital needs and its ability to increase market share both organically and through market consolidation. The housing market has softened over the last few months and Champion Homes has not been immune, leading to the company reporting disappointing earnings in May due to both weaker unit sales and pricing. The company has a very healthy balance sheet with a net cash position and is positioned to weather any short-term disruptions to the housing market caused by higher interest rates or dips in consumer confidence."

Champion Homes, Inc. (NYSE:SKY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Champion Homes, Inc. (NYSE:SKY) at the end of the second quarter, which was 23 in the previous quarter. While we acknowledge the potential of Champion Homes, Inc. (NYSE:SKY) 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 Champion Homes, Inc. (NYSE:SKY) and shared Third Avenue Real Estate Value Fund's views 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.