Will Booz Allen Hamilton (BAH) Benefit from Long-Term Secular Tailwinds?

Upslope Capital Management, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Upslope aims to provide attractive, equity-like returns while reducing market risk and keeping low correlation with traditional equity strategies. The fourth quarter marked a strong end to an exceptional year for the firm. The Fund delivered strong results with reduced downside risk. The Fund returned +2.0% (net) in Q4 compared to +1.6% for both the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index. For the year 2025, the Fund returned +14.8% compared to +7.2% and +10.1% returns for the indexes, respectively.  The firm observed that markets are increasingly dynamic, and most investment decisions are driven by aggressive, thematic, and very short-term-focused strategies. As a closing note, the letter states that identifying investment opportunities is straightforward, but returns remain uncertain given the current economic landscape.  In addition, you can check the Fund’s top five holdings to determine its best picks for 2025.

 In its fourth-quarter 2025 investor letter, Upslope Capital Management highlighted stocks such as Booz Allen Hamilton Holding Corporation (NYSE:BAH). Booz Allen Hamilton Holding Corporation (NYSE:BAH) offers management and technology consulting services to governments, corporations, and not-for-profit organizations. On January 16, 2026, Booz Allen Hamilton Holding Corporation (NYSE:BAH) stock closed at $97.40 per share. One-month return of Booz Allen Hamilton Holding Corporation (NYSE:BAH) was 12.61%, and its shares lost 28.41% of their value over the last 52 weeks. Booz Allen Hamilton Holding Corporation (NYSE:BAH) has a market capitalization of $12.004 billion.

Upslope Capital Management stated the following regarding Booz Allen Hamilton Holding Corporation (NYSE:BAH) in its fourth quarter 2025 investor letter:

"Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a consulting firm focused largely on serving the nation’s defense (~50% of revenue), intelligence (~15%) and civil (~35%) agencies. The company’s work is mostly focused on technology solutions – e.g. digital transformation, cyber defense, and AI deployment. Following the 2024 election of the Trump administration, BAH shares rapidly de-rated from a peak of nearly 30x EPS to a recent trough of 14x – largely due to “DOGE” cost-cutting fears.

While BAH has seen earnings and contract award headwinds under the new administration, Upslope’s view is that these will prove temporary and that the stock’s current valuation more than compensates investors for short-term challenges and uncertainty. More importantly, Booz should continue to benefit from severa; accelerating or stable long-term secular tailwinds: rising geopolitical risks, rapidly evolving technology usage and threats, and expanding size of government. While this last point (expanding government) was called into question over the past year, Upslope believes that betting on the government – especially the defense and national security arms – to shrink over the long-run is a very poor bet to make."

Booz Allen Hamilton Holding Corporation (NYSE:BAH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Booz Allen Hamilton Holding Corporation (NYSE:BAH) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of Booz Allen Hamilton Holding Corporation (NYSE:BAH) 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 Booz Allen Hamilton Holding Corporation (NYSE:BAH) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 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.