Here are the Reasons to Invest in OneMain Holdings (OMF)

Fiduciary Management Inc. (FMI), an independent money management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Stock markets rallied in the third quarter, with the Russell 2000, S&P 500, MSCI EAFE (Local/USD), and MSCI World Indices gaining 12.39%, 8.12%, 5.38%/4.77%, and 7.27% respectively. The performance was driven by a September rate cut by the Federal Reserve, strong enthusiasm for artificial intelligence (AI) and mega-cap technology, coupled with a surge of speculative buying activity. FMI’s portfolios differ from benchmarks, focusing on idiosyncratic dislocations. The firm focuses on business quality, balance sheet strength, and valuation while proceeding cautiously. Downside protection has been core to FMI for 45 years. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, FMI highlighted stocks such as OneMain Holdings, Inc. (NYSE:OMF). OneMain Holdings, Inc. (NYSE:OMF) is a financial service holding company. The one-month return of OneMain Holdings, Inc. (NYSE:OMF) was -5.99%, and its shares gained 22.70% of their value over the last 52 weeks. On October 21, 2025, OneMain Holdings, Inc. (NYSE:OMF) stock closed at $56.53 per share, with a market capitalization of $6.72 billion.

FMI stated the following regarding OneMain Holdings, Inc. (NYSE:OMF) in its third quarter 2025 investor letter:

"OneMain Holdings, Inc. (NYSE:OMF) is a scale leader in nonprime personal lending. Although they have a messy corporate history, our research suggests that in most key areas they are superior to their peers. We believe with a few years of clean results and an improved macro environment, this company could be reframed as a differentiated, high-quality financial. Given organic growth opportunities in personal lending, and newer areas such as credit card and direct auto, we believe they can grow organically in the mid-single digits with operating leverage, while at the same time returning significant capital through a large dividend and episodic buybacks. Although the current macro environment has stressed their core consumer and pressured net charge offs, we believe the income statement alone provides sufficient protection from an adverse outcome in nearly all reasonable scenarios, with further protection on the balance sheet in a tail risk scenario. The macro backdrop has given us the opportunity to own this industry leading business at an attractive valuation."

OneMain Holdings, Inc. (NYSE:OMF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 39 hedge fund portfolios held OneMain Holdings, Inc. (NYSE:OMF) at the end of the second quarter, compared to 40 the previous quarter.  OneMain Holdings, Inc.'s (NYSE:OMF) second quarter earnings were $1.40 per diluted share, an increase of 137% from $0.59 per diluted share in the second quarter of 2024.While we acknowledge the potential of OneMain Holdings, Inc. (NYSE:OMF) 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 Q3 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.