Should You Be Confident in Interparfums' (IPAR) Growth Prospects?

The London Company, an investment management company, released “The London Company Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The small-cap portfolio appreciated 1.9% (2.4% net) in the third quarter, compared to the Russell 2000 Index’s 12.4% gain. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Inter Parfums, Inc. (NASDAQ:IPAR). Headquartered in New York, New York, Inter Parfums, Inc. (NASDAQ:IPAR) engages in the manufacturing and distribution of a range of fragrances and fragrance-related products. The one-month return of Interparfums, Inc. (NASDAQ:IPAR) was -3.03%, and its shares lost 26.90% of their value over the last 52 weeks. On November 3, 2025, Interparfums, Inc. (NASDAQ:IPAR) stock closed at $90.58 per share, with a market capitalization of $2.909 billion.

The London Company Small Cap Strategy stated the following regarding Interparfums, Inc. (NASDAQ:IPAR) in its third quarter 2025 investor letter:

"Interparfums, Inc. (NASDAQ:IPAR) – IPAR was a bottom holding as retailers are managing inventory more cautiously and the overall fragrance market has softened. IPAR brands continue to be resilient with solid growth and incremental share gains. We remain confident in its ability to outgrow its end market through rising adoption and strong execution in innovation plus brand partnerships."

Interparfums, Inc. (NASDAQ:IPAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held Interparfums, Inc. (NASDAQ:IPAR) at the end of the second quarter, up from 17 in the previous quarter. While we acknowledge the potential of Interparfums, Inc. (NASDAQ:IPAR) 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 Interparfums, Inc. (NASDAQ:IPAR) and shared the list of consumer defensive stocks with more than 50% upside. The London Company Small Cap Strategy initiated a position in Interparfums, Inc. (NASDAQ:IPAR) during Q2 2025. 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.