White Brook Capital is Evaluating the New CEO of Target (TGT)

White Brook Capital Partners, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US economy demonstrated resilience in the quarter, with growth exceeding expectations, driven by high-end consumer spending and significant investments in artificial intelligence. However, softening labor markets may allow for potential cuts to short-term interest rates later this year. White Brooke Capital’s Small Cap Absolute Growth Strategy model portfolio performed well in its first year, exceeding expectations. Value-oriented stocks are underperforming. The All-Cap Portfolio of White Brook Capital shifted to growth companies but remains overweight in value, leading to disappointing performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, White Brook Capital Partners highlighted stocks such as Target Corporation (NYSE:TGT). Target Corporation (NYSE:TGT) is a US-based general merchandise retailer. The one-month return of Target Corporation (NYSE:TGT) was 0.38%, and its shares lost 30.82% of their value over the last 52 weeks. On December 04, 2025, Target Corporation (NYSE:TGT) stock closed at $91.59 per share, with a market capitalization of $41.618 billion.

White Brook Capital Partners stated the following regarding Target Corporation (NYSE:TGT) in its third quarter 2025 investor letter:

Portillo's and the fourth largest loser, Target Corporation (NYSE:TGT) both have new chief executives leading the companies forward while producing significant operating cash flow. Target’s choice of CEO was more difficult for us to understand, even while the company generates significant cash flow that it can use to return to shareholders and execute an improved retail strategy. We plan to give the new CEO a quarter to outline his plans for the Company and earn investor trust.

Target Corporation (NYSE:TGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of the third quarter, which was 54 in the previous quarter. While we acknowledge the potential of Target Corporation (NYSE:TGT) 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 Target Corporation (NYSE:TGT) and shared a bullish thesis on the company. 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.