What Makes Amphenol (APH) an Attractive Investment?

Bristol Gate Capital Partners, an investment management company, published its Q3 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but still surpassed the index in dividend growth. The underperformance was due to a lack of significant exposure to the AI/TMT sector or the Value sector, which provides advantages stemming from the Federal Reserve's rate cut. The portfolio returned 15% dividend growth over the trailing 12 months, driven by the strong underlying fundamentals. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Bristol Gate US Equity Strategy highlighted stocks such as Amphenol Corporation (NYSE:APH). Amphenol Corporation (NYSE:APH) designs and manufactures electrical, electronic, and fiber optic connectors. The one-month return of Amphenol Corporation (NYSE:APH) was -3.74%, and its shares gained 96.11% of their value over the last 52 weeks. On December 30, 2025, Amphenol Corporation (NYSE:APH) stock closed at $136.20 per share, with a market capitalization of $166.716 billion.

Bristol Gate US Equity Strategy stated the following regarding Amphenol Corporation (NYSE:APH) in its third quarter 2025 investor letter:

"Following quarter end, we built a position in Amphenol Corporation (NYSE:APH) while exiting Marsh & McLennan (MMC). Amphenol is a leading global designer, manufacturer, and marketer of high-technology interconnect, sensor, and antenna solutions. We believe APH is a high-quality, defensible franchise. Its proprietary technology, vertical integration, customer intimacy and entrepreneurial speed translate into pricing power, sticky share and outsized margins across diverse end-markets. Over the last 10 years, through organic and M&A driven investment, the company has grown sales at a 10% CAGR and EPS at a13% CAGR, supporting attractive and consistent dividend growth. We expect continued high dividend growth supported by the ongoing strength of APH’s underlying businesses. Specifically, its Information and Datacom (I&D) segment is seeing strong demand from the global datacenter build out and we believe consensus forecasts for this segment are underestimated."

Amphenol Corporation (NYSE:APH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held Amphenol Corporation (NYSE:APH) at the end of the third quarter, which was 81 in the previous quarter. Amphenol Corporation’s (NYSE:APH) third quarter sales were up 53% in US dollars and 52% in local currencies to $6.194 billion. While we acknowledge the potential of Amphenol Corporation (NYSE:APH) 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 Amphenol Corporation (NYSE:APH) and shared Qualivian Investment Partners' views on the company. Amphenol Corporation (NYSE:APH) was a strongest performer in Aoris International Fund's portfolio in Q3 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.