Tsai Capital's Views on QXO (QXO)

Tsai Capital Corporation, an investment management firm, released its fourth quarter 2025 investor letter. A copy of the letter can be downloaded here. Tsai Capital Growth Equity Strategy gained 8.5% before fees and 7.6% after fees for the year ended December 31, 2025, compared to the S&P 500 Index’s 17.9% return. Tsai Capital Growth Equity Strategy has gained 970% cumulatively before fees and 658% after fees, since its inception 26 years ago, compared to the S&P 500 Index’s total return of 639%. The strategy’s objective is to invest long-term in exceptional companies that can quickly and effectively allocate capital towards the most promising ideas and talent. Currently, the portfolio is invested in 17 high-quality growth companies across sectors. In addition, you can check the top five holdings of the Strategy to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Tsai Capital Corporation highlighted stocks like QXO, Inc. (NYSE:QXO). QXO, Inc. (NYSE:QXO) is a roofing, waterproofing, and other building products distributor. The one-month return of QXO, Inc. (NYSE:QXO) was 20.48%, and its shares gained 73.17% of their value over the last 52 weeks. On November 12, 2025, QXO, Inc. (NYSE:QXO) stock closed at $23.24 per share, with a market capitalization of $16.412 billion.

Tsai Capital Corporation stated the following regarding QXO, Inc. (NYSE:QXO) in its fourth quarter 2025 investor letter:

"QXO, Inc. (NYSE:QXO) —Year of First Purchase: 2024): In 2024, we initiated a position in QXO at approximately $11 per share. Under Brad Jacobs’ leadership, the company is in the early stages of executing a bold plan to consolidate and disrupt the $800 billion building products distribution industry. Having previously invested in two of Brad’s highly successful ventures—United Rentals and XPO Logistics—Tsai Capital is excited to back his latest endeavor.

Our strategy focuses on partnering with exceptional capital allocators. Having followed Brad’s remarkable career for nearly three decades and spent countless hours in discussions with him, I rank him among the very best. His personal commitment of $900 million to QXO further aligns his interests with ours..." (Click here to read the full text)

QXO, Inc. (NYSE:QXO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 65 hedge fund portfolios held QXO, Inc. (NYSE:QXO) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of QXO, Inc. (NYSE:QXO) 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 QXO, Inc. (NYSE:QXO) and shared the list of large cap stocks under $100 with huge upside potential. 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.