Here's What Boosted Philip Morris (PM) in Q2

Broyhill Asset Management, an investment advisor, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 3.7% net of all fees and expenses in the second quarter, building on first-quarter gains, but falling short of the strong rally across global markets. The MSCI All Country World Index returned 11.7% for the second quarter. During the six months ended June 30, the strategy returned 6.6%, net of all fees and expenses, compared to 10.3% for the index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Broyhill Asset Management highlighted stocks such as Philip Morris International Inc. (NYSE:PM). Philip Morris International Inc. (NYSE:PM) is a tobacco company that offers cigarettes and smoke-free products. The one-month return of Philip Morris International Inc. (NYSE:PM) was -5.82%, and its shares have appreciated by 33.92% over the past 52 weeks. On September 18, 2025, Philip Morris International Inc. (NYSE:PM) stock closed at $161.76 per share, with a market capitalization of $251.794 billion.

Broyhill Asset Management stated the following regarding Philip Morris International Inc. (NYSE:PM) in its second quarter 2025 investor letter:

"Shares of Philip Morris International Inc. (NYSE:PM) gained 16% in the second quarter. The story remains largely the same, with growth driven by its smoke-free portfolio, most notably ZYN (nicotine pouches) and IQOS (heated tobacco). What has changed is the general acceptance among investors of our initial thesis. Consequently, PM’s valuation has expanded meaningfully since our initial purchases, with shares trading around 20x forward earnings today. Even after this move higher, the stock still trades below a market multiple, despite what we see as one of the most attractive organic growth runways in the consumer staples sector. We further reduced our stake in the second quarter, but PM remains a core position and our largest holding in the portfolio."

Philip Morris International Inc. (NYSE:PM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 111 hedge fund portfolios held Philip Morris International Inc. (NYSE:PM) at the end of the second quarter, up from 104 in the previous quarter.  While we acknowledge the potential of Philip Morris International Inc. (NYSE:PM) 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 Philip Morris International Inc. (NYSE:PM) and shared some of the best performing stocks in 2025. 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.