General Motors (GM) Gained After Raising Full-Year Outlook

Hotchkis & Wiley, an investment management company, released its fourth-quarter 2025 investor letter for the “Hotchkis & Wiley Large Cap Disciplined Value Fund.” A copy of the letter can be downloaded here. In Q4 2025, the S&P 500 returned 2.7%, bringing its yearly gains to 17.9%. Since the 2007-08 financial crisis, the Index has increased tenfold, achieving positive results in 15 of 17 years. However, high valuations have made investors cautious, particularly with the returns concentrated in a few stocks. Excluding the "Magnificent 7," the forward PE of the S&P 500 Index aligns with historical averages. In 2025, information technology and communication services led performance, but results varied significantly within those sectors. The firm views the potential of certain software companies to be very attractive. In this environment, the Fund outperformed the Russell 1000 Value Index both in Q4 and over the full calendar year. Positive stock selection contributed to the Fund's relative performance. Please review the Fund’s top 5 holdings to gain insight into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value Fund highlighted stocks such as General Motors Company (NYSE:GM). General Motors Company (NYSE:GM) is a leading automobile manufacturer and a significant contributor to the fund's performance in the quarter. The one-month return of General Motors Company (NYSE:GM) was 6.52%, and its shares gained 74.40% of their value over the last 52 weeks. On January 29, 2026, General Motors Company (NYSE:GM) stock closed at $86.26 per share, with a market capitalization of $80.469 billion.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding General Motors Company (NYSE:GM) in its fourth quarter 2025 investor letter:

"General Motors Company (NYSE:GM) is a global automotive manufacturer with a diversified portfolio of vehicle brands and a growing presence in electric vehicles, autonomous technology, and software-enabled mobility services. Shares appreciated the most in a single day since 2020 after the automaker raised its full-year outlook, due to better-than-expected pickup truck sales. The company also benefited from recent relief by the Trump administration on auto parts tariffs."

General Motors Company (NYSE:GM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held General Motors Company (NYSE:GM) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of General Motors Company (NYSE:GM) 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 General Motors Company (NYSE:GM) 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.