Here's Why Victoria's Secret (VSCO) is Beginning to Reflect the Brand's Recovery

Greenlight Capital, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Greenlight Capital’s investment strategy focuses on constructing a bottom-up portfolio comprising undervalued long positions and overvalued short positions, while also including a macro book to hedge risks and capture insights. The Partnership returned 9.0% (net) in 2025 compared to 17.9% for the S&P 500 index. In contrast, it returned 8.5% in Q4, compared to 2.7% for the index. The Partnership has returned $6.1 billion, net of fees and expenses, to its investors since its inception in May 1996.  For more information on the Partnership’s top picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Greenlight Capital highlighted Victoria’s Secret & Co. (NYSE:VSCO) as one of its leading contributors within the long portfolio. Victoria’s Secret & Co. (NYSE:VSCO) is a leading American specialty retailer of women's intimate and other apparel and beauty products. Victoria’s Secret & Co. (NYSE:VSCO) shares traded between $13.76 and $66.89 over the past 52 weeks. On January 29, 2026, Victoria’s Secret & Co. (NYSE:VSCO) stock closed at $56.00 per share. One-month return of Victoria’s Secret & Co. (NYSE:VSCO) was 4.95%, and its shares gained 58.87% of their value over the last three months.

Greenlight Capital stated the following regarding Victoria’s Secret & Co. (NYSE:VSCO) in its fourth quarter 2025 investor letter:

"Victoria’s Secret & Co. (NYSE:VSCO): A prior management team nearly destroyed one of the most well-known brands in the world. To be more politically correct, it got rid of sexy and eliminated its world-famous fashion show. New management is reversing those decisions and the brand is beginning to recover. The stock, which was all but left for dead, is beginning to reflect the brand’s recovery."

Victoria’s Secret & Co. (NYSE:VSCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held Victoria’s Secret & Co. (NYSE:VSCO) at the end of the third quarter, compared to 44 in the previous quarter. While we acknowledge the potential of Victoria’s Secret & Co. (NYSE:VSCO) 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 Victoria’s Secret & Co. (NYSE:VSCO) and shared the list of most undervalued retail stocks to invest in. 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.